The affidavit of assets and liabilities

In 2020 the Supreme Court made a sworn financial disclosure compulsory for both sides in every maintenance case in the country. It is now the document on which quantum is largely decided.

• Rajnesh v. Neha (2020)
• s. 24 HMA
• s. 144 BNSS
• s. 20 PWDVA

Why it exists

Before Rajnesh v. Neha, maintenance was frequently decided on assertion. One side claimed a salary figure, the other disputed it, and the court did the best it could. The Supreme Court's judgment addressed that by directing that a detailed affidavit of assets and liabilities be filed by both parties in every maintenance proceeding, in a prescribed format, across all courts in India — whether the claim is under the Hindu Marriage Act, section 125 CrPC (now section 144 BNSS), the Domestic Violence Act or any other provision.

What it contains

• Personal particulars, dependants, and educational and professional qualifications
• Income from every source — salary, business, rent, interest, dividends, agriculture, and any other
• Immovable property, with the manner and date of acquisition and the present value
• Movable assets: vehicles, jewellery, deposits, shares, mutual funds, insurance policies, provident fund
• Liabilities: loans, EMIs, credit card outstandings, and any other obligation
• Monthly expenditure, itemised — rent, utilities, school fees, medical, transport, household
• Details of all previous and pending maintenance proceedings and every order already passed
• Supporting documents: income tax returns, Form 16, salary slips, bank statements, property papers

Separate formats apply for salaried persons and for those in business or self-employment, and additional particulars are required in the case of an agricultural income.

False or incomplete disclosure

The affidavit is sworn. Concealing an income stream or an asset that later emerges from a bank statement or a tax return does more damage than the concealed amount was ever worth: it goes to credibility on every issue in the case, and the court is entitled to draw an adverse inference and to proceed on the basis of what it considers the party's real means to be. The Supreme Court directed that non-disclosure and false disclosure carry consequences, including the striking off of the defence.

Preparing it properly

Three points are worth making to anyone about to sign one. First, reconstruct the figures from documents rather than from memory, and then check that the documents agree with each other — a declared income that does not match the tax return is the most common self-inflicted wound in these cases. Second, expenditure must be evidenced, not asserted; a claimed monthly expenditure with no receipts is discounted. Third, disclose every prior proceeding and order, because the other side will produce them if you do not, and the court has been directed to take them into account when adjusting the award.