Court holds that husband's variable income from ESOPs and share sales must be considered for maintenance; wife's medical condition and child's needs also factored, increasing monthly maintenance from Rs.50,000 to Rs.1,20,000
In a significant interim maintenance ruling delivered on September 24, 2026, the Karnataka High Court in the case of Elizabeth George v. Vivek George Jacob has enhanced the maintenance payable by the husband to his estranged wife and minor child. The judgment highlights the importance of considering all forms of income, including variable components like Employee Stock Option Plans (ESOPs) and income from share sales, while determining the husband's financial capacity.
The dispute arose from Family Court orders granting interim maintenance of Rs.50,000 per month to the wife and child, which both parties challenged: the wife sought enhancement, while the husband sought reduction. The High Court disposed of both writ petitions by a common order, allowing the wife's petition and dismissing the husband's.
Background facts reveal that the wife, Elizabeth George, had been employed as a manager at Randstad India Pvt. Ltd., earning a net salary of Rs.83,450 per month until she was laid off in July 2025 due to organizational restructuring. She suffers from autoimmune disease and glaucoma, as substantiated by medical records placed before the court, rendering her unable to secure employment currently.
The husband, Vivek George Jacob, working at Cisco Systems (India) Pvt. Ltd., initially declared a monthly income of Rs.2,91,757. However, the court scrutinized his income tax returns, which disclosed an annual gross income exceeding Rs. 62.9 lakhs, with additional perquisites valued at over Rs. 28.4 lakhs from ESOPs. Furthermore, evidence showed he regularly earned Rs. 20 to 28 lakhs annually from the sale of shares, a source of income he sought to exclude from maintenance calculations, arguing their variability.
Rejecting the husband's contention, the court held that variable incomes such as ESOPs and earnings from share sales constitute a legitimate part of his financial capacity. The court relied on precedents including the Delhi High Court's judgment in Nayanika Thukar Mehta v. Mohit Mehta and the Supreme Court's ruling in Deepa Joshi v. Gaurav Joshi, which emphasize that loan repayments resulting in asset creation do not diminish the obligation to provide maintenance.
The court further observed that the husband's expenses on dependents, including his aged grandmother (now deceased) and sister, could not be considered as overriding his maintenance obligations. The court noted the wife's maintenance claim of Rs.1,75,438 per month was reasonable given her medical condition, her responsibility towards their minor child, and the fact that she was servicing loans and EMIs.
Importantly, the court found fault with the Family Court's decision to grant maintenance only from the date the wife lost her job, ruling that maintenance should be payable from the date of the wife's application for maintenance since she was incurring liabilities and caring for the child even before her job loss.
Consequently, the High Court enhanced the monthly maintenance amount from Rs.50,000 to Rs.1,20,000, payable from the date of the Family Court's order. It also directed the husband to pay Rs.30,000 per month from the date of the wife's maintenance application until the date she lost her job. The husband was further ordered to continue bearing the minor child's educational expenses and to reimburse any fees already paid by the wife for the 2024-25 academic year.
The judgment underscores the judiciary's commitment to a comprehensive assessment of income sources when awarding maintenance and reflects sensitivity to the wife's medical condition and the minor child's welfare.
Bottom Line:
Special Marriage Act - Interim maintenance - While determining husband's financial capacity, ESOPs/perquisites and income from sale of shares cannot be ignored merely because they are variable - Loan repayments creating assets cannot override maintenance obligation - Wife's subsequent medical condition and child's needs must be considered - Maintenance enhanced from Rs.50,000/- to Rs.1,20,000/- per month and additional maintenance granted from date of application till wife lost job.
Statutory provision(s):
Special Marriage Act, 1954 Section 38
Elizabeth George v. Vivek Geroge Jacob, (Karnataka) : Law Finder Doc Id # 2992014
