Division of matrimonial assets

What counts as a matrimonial asset

Under section 112 of the Women's Charter, the court can divide matrimonial assets when it grants, or after it grants, a divorce. The pool is wider than what is held in joint names. It generally includes:

• Assets acquired during the marriage by either or both spouses, such as a flat or house, savings, CPF balances, shares, investments, insurance policies and vehicles.
• Assets owned before the marriage that were ordinarily used by the family, such as a home the couple lived in.
• Assets owned before the marriage that were substantially improved during it by the other spouse or by both.

How the court decides each share

The court's aim is a just and equitable result, not a fixed formula. It looks at the financial contributions each spouse made towards acquiring or maintaining the assets, and at contributions to the welfare of the family, such as looking after the home and caring for children or elderly relatives. Other factors include the length of the marriage, the needs of the children, any debts taken on for the family and any agreement between the spouses, such as a prenuptial agreement.

In many cases, especially where both spouses worked, the court uses a structured approach set out by the Court of Appeal in ANJ v ANK. It works out a ratio for each spouse's direct financial contributions, then a ratio for their indirect contributions, averages the two and adjusts the result for other relevant factors.

Where the marriage was a long single-income marriage, with one spouse mainly earning and the other mainly caring for the family, the courts take a broader approach, and the outcome often moves towards equal division. Recent cases show that it is the facts of the marriage, not which spouse is the husband or wife, that matter.

Conduct such as adultery generally does not affect how assets are divided.

Disclosure

Each spouse has a duty to give full and frank disclosure of what they own and owe. In contested cases, this is done through Affidavits of Assets and Means, which set out income, assets, liabilities and expenses with supporting documents. If one spouse is found to have hidden or dissipated assets, the court can draw an adverse inference and give the other spouse a larger share.

The orders the court can make

The court has wide powers. It may order that a property be sold and the proceeds divided, that one spouse transfer their share to the other, that a sale be put off for a period, or that one spouse pay the other a lump sum.

When the home is an HDB flat

HDB rules do not override the court's powers, but they affect what is practical.

• If the Minimum Occupation Period, typically five years, has not been met, the flat generally cannot be sold on the open market, which narrows the options.
• A spouse who wants to keep the flat must still meet HDB's eligibility rules, for example under a scheme for single citizens or single parents, and HDB must approve the transfer.
• CPF monies used for the flat may need to be refunded to the CPF accounts on a sale or transfer.
• HDB does not give new housing loans to buy over a spouse's share, so the spouse keeping the flat may need other financing.

Getting advice

How the pool is defined and how contributions are weighed can make a real difference to the result. A family lawyer can look at your documents and explain how the law may apply to your situation.