In Singapore, the division of matrimonial assets is a crucial part of divorce proceedings. The Family Justice Courts ensure that assets acquired during the marriage are fairly distributed, reflecting the contributions of both parties. Below is a general overview on the topic but for specific advice related to your own situation please get in touch with a legal professional.
What are matrimonial assets?
Matrimonial assets include:
- Assets acquired during the marriage: this includes property, savings, and investments accumulated by either party during the marriage.
- Pre-marriage assets used for family purposes: this can include property acquired before the marriage but used by the family or significantly improved during the marriage.
Excluded assets
Assets acquired before the marriage and not used for family purposes, as well as gifts and inheritance (unless used for family purposes).
The principles of division of matrimonial assets
Under Section 112 of the Women’s Charter, the courts divide matrimonial assets based on the principle of “just and equitable distribution.” Key considerations include:
- Direct Contributions: Financial contributions to acquiring the asset, such as mortgage payments or initial deposits.
- Indirect Contributions: Non-financial contributions, such as raising children, maintaining the home, and supporting the family.
- Length of Marriage: Longer marriages often see a more equal division of assets due to the extended partnership.
- Needs of the Children [where relevant]: Priority is given to ensuring the welfare of children, including housing and financial stability.
- Economic Disparities: Consideration of each party’s earning capacity and future financial needs.
Steps in dividing matrimonial assets
- Identification: Both parties disclose their assets, including properties, bank accounts, investments, and other valuables.
- Valuation: The value of each asset is determined, often with the help of professional valuations.
- Assessment of Contributions: The court evaluates both direct and indirect contributions to the marriage.
- Division: Based on the “just and equitable” principle, the court decides how to divide the assets.
Common scenarios in Singapore
- HDB Flats: If purchased under the names of both parties, the flat may be sold, and proceeds divided. Alternatively, one party may buy over the other’s share, provided they meet eligibility criteria (e.g., custody of children or remarriage plans).
- Joint Bank Accounts: Funds are usually split based on contribution percentages.
- Businesses: The court considers the role of each party in building the business when dividing ownership or profits.
- Private Properties and Investments: Similar principles apply, with proportional adjustments reflecting each party’s contributions.
Seeking legal assistance
Dividing matrimonial assets can be complex, particularly for high-net-worth individuals or cases involving hidden assets. It’s advisable to seek guidance from an experienced family lawyer to ensure transparency and fairness in the process. Please do reach out for a no obligation discussion should you require advice.