Singhania's divorce settlement: Nawaz Modi demands 75% of ex-husband Gautam's net worth
Nawaz Modi has reportedly demanded 75% of Gautam Singhania’s fortune of $1.4 billion for the divorce settlement
Singhania has recommended creating a family trust and transferring the family's assets to it, with him serving as the only managing trustee, even though it is thought that he has generally consented to the demand.
ET reported that his family members would be permitted to inherit the assets following his passing. Nawaz is thought to find this intolerable.
People familiar with trust laws said that a trust consists of three primary stakeholders: the settler, who contributes funds to the trust, the trustee, who serves as an administrator, and the beneficiary.
A Mumbai-based tax specialist, on the condition of anonymity, said, “A trust is primarily about a relationship rather than the law. A trustee may also be a settler. Not all three, though. That would negate the intention and come under contract law provisions."
Gautam Singhania announces separation from wife
Billionaire Gautam Singhania on November 13 announced separation from his wife Nawaz, saying the two have decided to pursue different paths. Singhania, 58, had married Nawaz Modi, daughter of solicitor Nadar Modi, in 1999.
“This Diwali is not going to be the same as many in the past. It is my belief that Nawaz and I will pursue different paths from here on," Singhania, chairman and managing director of textiles-to-real estate conglomerate Raymond Ltd, had said in social media posts.
He had married Nawaz, who was 29 years old in 1999, after eight years of courtship.
"32 years of being together as a couple, growing as parents and always being a strength of each other... we traversed with commitment, resolve, faith as along came the two most beautiful additions in our lives," he said.
"As I reflect over the unfortunate developments in the recent past, there has been a lot of unsubstantiated rumor-mongering, and gossip surrounding our lives fanned by 'not so well-wishers'," he wrote. "I am parting ways with her while we continue to do what is best for our two precious diamonds Niharika and Nisa."