Mary Kom's Financial Knock Out And Divorce: 3 Money Lessons For Women To Learn

Mary Kom has learnt harsh lessons in money management. An Olympic medalist, and a six time world champion, this successful Indian boxer experienced a financial knock-out when she found her husband telling her lies and using her hard-earned money without her knowledge. 

While sharing her personal life, divorce and financial hardships, she said, “I was bedridden for several months, needed a walker after that. It was then that I realised that the man I had trusted was not what I believed him to be.”

Kom shared that she lost trust in her husband when she found out his lies. "He kept taking loans, mortgaging my property, which he transferred in his name. He borrowed money from locals in Churachandpur, and to recover it from him, they have seized the land through underground groups," citing her reported PTI.

After making several attempts and failing to resolve issues between them, she sought a divorce. Her marriage of over two decades, ended in divorce in 2023. She said that she was silent about her divorce, but decided to speak up because the “Slander” was too much for her to bear, and people called her “greedy” without knowing the troubles she faced.

“I have been left broken, but I can't even afford to grieve. Because I have four kids to take care of, parents who are dependent on me. I work hard for my kids, God knows how difficult it has been, but can you afford to stay down when you have children? You have to pick yourself up,” she said.

Her journey has not been any less than spectacular, so much so that a biopic on her life was made and released in 2013, in which Priyanka Chopra played Kom. But while Kom was busy, she didn’t pay any attention to her finances and trusted her husband to handle financial matters.

It is crucial for women to be financially literate and participate in financial decisions instead of leaving everything to the other person.

Here are three lessons women can learn from Kom's journey, her financial struggles, and her resilience.

Should One Spouse (Typically Wives) Fully Depend On The Other Spouse For Money Management?

Preeti Zende, a Securities and Exchange Board of India-registered investment advisor (Sebi RIA) and founder of Apanadhan Financial Services, says, “Marriage is a beautiful bond between two individuals, creating a strong relationship that lasts a lifetime. Just as a skyscraper requires a solid foundation, a family can only thrive when built on a strong connection. As you journey through marriage together, your financial situation will develop positively when you share a sense of unity. Working together to build your family fortune is one of the most rewarding experiences you can have as a couple.

“However, this does not mean you should blindly rely on your spouse for financial management. Before signing any documents, making joint investments, or applying for loans, it is your responsibility to fully understand the terms, as well as the advantages and disadvantages of each transaction. Once you sign any document, it will be your responsibility going forward.”

Participation in financial matters with a proper understanding is essential.

Kavita Bothra, Partner, Primassure LLP, a wealth management firm shares an interesting analogy, saying, “Think of it this way: if someone else was cooking all your meals, you'd still want to know what ingredients are in your food, especially if you have allergies, wouldn't you? Financial decisions work the same way. They directly affect your life, your security, and your future.”

Discussing financial matters and asking questions about the implications of signing a document, buying an asset, taxation, etc., is not being doubtful, but about being literate. Trusting another person shouldn’t mean the absence of transparency. Money should be talked about and discussed regularly in families to improve understanding and ensure that both partners are on the same page.

Should One Check Cibil Report Regularly?

Kom shared that her husband took a loan and didn’t pay back, which she got to know about only when she was bedridden for months. Considering her busy schedule, checking bank accounts and other financial information regularly could be difficult, but it is not the case for everyone. 

Kavita Menon, a Securities and Exchange Board of India-registered investment advisor (Sebi RIA), suggests, “It is necessary to at least be aware of what’s happening with your money (if not managing it actively). Checking Cibil score once a year is very important to not only keep fraudulent loans under check but also to keep your ability to raise money when needed.”

Bothra suggest being more proactive. She says, “I recommend checking it at least twice a year, and it's quite simple to do online. It shows all active loans, credit cards, and even details of closed accounts. More importantly, it shows if someone has taken a loan in your name without your knowledge - which unfortunately happens, especially in cases where family members have access to your documents.”

One should check bank accounts and other financial details regularly or set an alert so that they also get the updates whenever a transaction happens. Regular checking of Cibil score is also useful in warding off potential fraudsters in the digital era.

Why Is It Important To Maintain An Emergency Fund?

Everyone must maintain an emergency fund to be able to face any unforeseen situation at any time. Even Kom, a renowned boxer and a former Rajya Sabha member, had to face financial hardships because exigencies do not occur as planned. As she said, "What is the point of my achievements? Kya fayda, I have been left broken but I can't even afford to grieve. Because I have four kids to take care of, parents who are dependent on me."

According to experts, an amount for six months of expenses should ideally be parked in instruments that are readily available for use. This should start with the first saving and always be maintained, no matter what.

“Most preferred financial products used for emergency funds are bank savings account, fixed deposits (FDs), recurring deposits (RDs), liquid funds, overnight funds, hard cash and (only in emergency), credit card limit. More importantly, if the fund is used up, then efforts must be made to replenish it as soon as possible. The adequacy of the emergency fund should also be periodically reviewed. It should be done annually or whenever there is a large addition, such as an equated monthly instalment (EMIs), to the monthly expenses,” concludes Zende.

While separation can create an immense emotional void, a financial safety net in terms of an emergency fund can help in absorbing the shock.

One can also learn resilience from the 'Magnificent Mary’, who, now being 43, cannot compete in the amateur circuit, but is exploring other avenues like endorsements, etc., to rebuild her finances.