Reaching agreement can be one of the most constructive stages of a divorce.
An agreement can give both parties greater certainty and allow a family to move forward with clearer arrangements concerning finances, property and children.
But there is an important difference between reaching an agreement quickly and reaching an agreement that has been properly considered.
Before finalising divorce terms, it can be useful to look beyond the immediate numbers and think about how the proposed arrangements will work in everyday life.
Here are eight areas worth considering.
1. What Will Your Financial Position Look Like Afterwards?
When discussing the division of assets, it is natural to focus on percentages or the value each spouse will receive.
But the practical outcome matters too.
Consider what your financial position might look like after the settlement is implemented.
For example:
- Will you need to purchase or rent another home?
- What regular expenses will you have?
- Will your income comfortably cover those expenses?
- What assets will remain liquid and readily accessible?
- What longer-term financial commitments will you have?
A settlement can look reasonable on paper while producing very different practical outcomes depending on each person’s circumstances.
2. What Will Happen to the Family Home?
For many Singapore families, the matrimonial home is one of their most significant assets.
A settlement therefore needs to consider more than its estimated market value.
Depending on the circumstances, questions may include whether the property will be sold, whether one party hopes to retain it, how any outstanding mortgage will be handled and what happens to CPF monies used for the property.
Housing plans after the divorce may also affect other financial decisions.
It can therefore be helpful to consider the home as part of the overall settlement rather than treating it as an isolated asset.
3. Have You Considered CPF Alongside Other Assets?
CPF can form an important part of the overall financial picture.
When considering settlement proposals, it may be useful to understand how CPF funds relate to the matrimonial home and how the proposed division of assets could affect each person’s financial position.
This is one reason why looking solely at headline asset values may not tell the whole story.
Understanding how the various components work together can provide a clearer picture of the proposed outcome.
4. Will the Children’s Arrangements Work in Real Life?
Parents may agree broadly on children’s arrangements while overlooking some of the practical details that make those arrangements workable.
Consider an ordinary school week.
Who handles school drop-offs and collections?
What happens on weekends?
How will school holidays be divided?
How will birthdays and important celebrations be handled?
How will overseas travel with the children be managed?
What happens when work schedules change?
A practical arrangement should ideally provide sufficient clarity while remaining workable for both parents and the children.
For information about family law matters extending beyond divorce itself, Singapore Family Lawyers provides guidance covering divorce, children, maintenance, matrimonial assets and other areas of family law.
5. Is Maintenance Clear Enough?
Where maintenance forms part of the proposed settlement, clarity can help both parties understand their responsibilities.
Rather than considering only the amount, it may be useful to think about matters such as payment timing, children’s recurring expenses and how particular costs will be handled.
For families with children, expenses can also evolve as children grow.
Schooling, enrichment, transport, healthcare and other costs may change over time, so practical arrangements can be just as important as the headline figure.
6. Are You Looking at the Settlement as a Whole?
Divorce settlements commonly involve several connected issues.
A proposal concerning the matrimonial home may affect the division of other assets. Children’s living arrangements may affect housing requirements. Maintenance arrangements may influence each person’s monthly financial position.
For that reason, it can be useful to avoid assessing each item entirely on its own.
Instead, ask:
What does the complete arrangement mean for me once everything has been implemented?
Looking at the settlement as a whole can make it easier to identify whether the various components work together sensibly.
7. Do You Understand What Happens After the Agreement?
A good settlement should provide clarity not only about what has been agreed but also about what needs to happen next.
There may be practical steps required to implement the terms concerning property, payments, children’s arrangements or other assets.
Understanding those steps can help both parties move from agreement to implementation with fewer uncertainties.
This is also an appropriate stage to clarify anything in the proposed terms that you do not fully understand.
8. Have You Had the Terms Reviewed Before Committing?
Even where both spouses are cooperative, obtaining legal advice can help you understand the effect of the proposed terms before they are finalised.
A lawyer can explain how the different parts of the settlement interact, identify issues that may require clarification and help you understand the legal implications of what you are agreeing to.
For those considering professional representation, Singapore Divorce Lawyers provides information about divorce services and the lawyers handling these matters.
You can also learn more about PKWA Law’s divorce practice, including its approach to settlements, matrimonial assets, children and contested or uncontested proceedings, from its divorce lawyer Singapore resource.
A Good Settlement Should Help You Move Forward
A well-considered divorce settlement is not simply about resolving today’s disagreement.
Ideally, it creates clear arrangements that both parties understand and can put into practice.
Taking time to consider the financial, housing and family implications of the proposed terms can therefore be worthwhile, even where both spouses are already broadly in agreement.
The objective is not to make the process more complicated. It is to make sure that when an agreement is reached, you understand what it means for the next stage of your life.
PKWA Law was interviewed by The Straits Times on the topic of divorce by mutual agreement, one of the most significant reforms to Singapore’s divorce laws in recent years.
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