When getting divorced, the Court decides on the division of matrimonial assets in Singapore if you and your spouse are unable to agree. Once an Interim Judgement of Divorce has been granted, the next step is to deal with ‘ancillary matters’. Issues related to custody of children, property and assets, and maintenance fall under ancillary matters.
In certain situations – like when a settlement is not possible or if parties have decided to apply for ancillary relief – both parties will need to submit an Affidavit of Assets and Means to the Court declaring and disclosing all information related to their assets, income, liabilities, and contributions made to the family, financial and non-financial.
It is extremely important to be fully transparent when declaring your matrimonial assets. Failure to do so may result in consequences against you during the divorce hearings.
In this article, we’ll go through what counts as a matrimonial asset, and what factors the Court will take into consideration when deciding on the distribution of matrimonial assets.
1. What Are Considered Matrimonial Assets?
Matrimonial assets in Singapore are defined under Section 112(10) of the Women’s Charter. Whether an item or property is considered a matrimonial asset depends on when it was acquired and how it was used during the marriage.
Generally, all assets acquired during the marriage by either or both parties are considered matrimonial assets.
These may include property, businesses, insurance policies and payouts, savings, stocks, shares, family cars, Central Provident Fund (CPF) balances, jewellery, and even pets. Lottery winnings obtained during the marriage are also considered matrimonial assets in Singapore.
In cases where assets were acquired before the marriage, they may still be considered matrimonial assets if:
- They were ordinarily used or enjoyed by both parties or one or more of their children.
- They were substantially improved during the marriage.
- They were one or both parties to the marriage
- Assets acquired before or during marriage
- Ordinarily used or enjoyed by parties or children
- For shelter, transportation, household, education, recreational, social and aesthetic purposes;
- Assets substantially improved during marriage by one or both parties to the marriage.
For instance, if one party purchases a property before the marriage, and after getting married, both spouses live in that property with their children, it becomes the matrimonial home.
Even though the property was acquired by one party before the marriage, its use as the family home qualifies it as a matrimonial asset.
If an asset acquired before marriage does not fulfil these conditions, it is considered a non-matrimonial asset and is generally excluded from the division of matrimonial assets during a divorce.
The division of matrimonial assets in Singapore is carried out in a “just and equitable manner,” as required by Singapore law. This ensures fairness for both parties, whether through an out-of-court settlement or a court decision.
Several factors are considered in the just and equitable division of assets, including:
- The direct contributions made by each party, such as financial contributions towards the purchase of assets.
- The indirect contributions, like the care of the home or children, are crucial in determining each party’s share.
- The needs and welfare of any children from the marriage.
- Any agreements between the parties about the division of matrimonial assets in the event of a divorce.
It is important to note that gifts or inheritances are not usually considered matrimonial assets unless they refer to the matrimonial home or have been substantially improved during the marriage.
Common examples of assets subject to division include businesses, CPF balances, savings, shares, cars, and jewellery.
2. What Are Non-Matrimonial Assets?
Non-matrimonial assets will not be considered during the divorce proceedings. In addition to the above, the following are also considered non-matrimonial assets:
- Gifts received from an external party (meaning not gifted from one spouse to the other)
- Inheritance
- Assets that have not substantially improved in value during the marriage
The definition of gifts, however, can be slightly tricky. For example, if one spouse gifted something to another which was purchased using money earned, it may be considered a matrimonial asset. However, if the gift was purchased using money received from an inheritance, that gift may be considered a non-matrimonial asset.
If you’re unsure of what constitutes a matrimonial asset, it’s recommended that you seek legal advice from an experienced divorce lawyer in Singapore to avoid under- or over-declaring your assets.
3. Are Assets Always Split 50/50 In A Divorce?
Not necessarily. There is no default when it comes to the division of matrimonial assets in Singapore, and each divorce is evaluated on a case-by-case basis.
According to Section 112(2) of the Women’s Charter, the Court’s decision to divide matrimonial assets is based on a number of factors, including:
- Direct financial contributions in monetary terms
- Indirect non-financial contributions towards the welfare of the family
- The needs of the children
- Any debt owed
- Presence of any prenuptial and postnuptial agreement between parties
- Any period of rent-free occupation or other benefit enjoyed by one party in the matrimonial home
- The support by one party to the other party
The Court ascribes a preliminary ratio of each party’s direct financial contributions to the matrimonial assets and any indirect, non-financial contributions to the family’s well-being. It will then take the average of the two ratios to determine each party’s overall contributions to the marriage.
Considerations When Splitting Assets In A Divorce
In the division of matrimonial assets in Singapore, both financial and non-financial contributions are carefully considered. These contributions play a crucial role in how the Court determines a fair and just and equitable division of assets.
- Financial Contributions (Direct Contributions): This includes income earned by either party during the marriage, investments made, and other parties financial contributions towards acquiring matrimonial assets such as property, savings, or businesses.
- Non-Financial Contributions (Indirect Contributions): Non-financial contributions are equally important in dividing matrimonial assets. These include maintaining the home, caring for children, and supporting the other party in their career or business. Indirect contributions like homemaking and child-rearing are vital to the family’s well-being and are considered in the division process.
- Duration of the Marriage: The length of the marriage also matters. In short marriages, the focus may lean towards each party’s direct contributions, as indirect contributions like homemaking may be limited.
In contrast, in longer marriages, indirect contributions carry more weight, as the homemaker’s role is seen as a significant contribution to the family unit. Thus, in long-term marriages, a homemaker may receive a larger share of the assets, even if they made no direct financial contribution.
How Are Assets Split In Divorce In Singapore?
The division of matrimonial assets in Singapore is not based on a strict 50/50 split. Instead, the Court follows a structured approach to ensure a just and equitable division, considering various factors.
The Court evaluates both direct contributions (financial) and indirect contributions (non-financial) to determine each party’s share in the divorce asset split.
- Extent of Contribution: The Court assesses the extent of contributions made by both parties towards acquiring, improving, or maintaining the matrimonial assets. This includes:
- Direct contributions like financial inputs made by either party.
- Indirect contributions include homemaking, child-rearing, maintaining the property, and assisting the other spouse in their occupation or business. Contributions to the family’s welfare, including caring for any aged or infirm relatives, are also considered.
- Needs of the Children: If there are children involved, their welfare is a priority. In such cases, the matrimonial home may be awarded to the parent who has primary custody to provide stability for the children. The Court considers who will have care and control of the children and ensures that their needs are met when dividing matrimonial assets.
- Agreements Between Parties: Prenuptial agreements, postnuptial agreements, or any other agreements made before or during the marriage can affect the division of assets. The Court may consider these agreements when determining how to divide the assets.
- Financial Independence After Divorce: The Court also examines the financial independence of both parties post-divorce. Factors such as the working abilities and qualifications of the spouses are considered. A spouse with limited financial independence may receive a larger share of the assets to support themselves after the divorce.
- Debts Incurred for Joint Benefit: Any debts undertaken for the joint benefit of both parties or for the benefit of the children are also considered. The Court will account for these debts when dividing the assets, ensuring that each party bears a fair share of responsibility.
Proportion Of Contribution
When the Court decides on the proportion of contribution, it considers both financial and non-financial aspects. For short marriages, the focus may be on direct contributions, while for longer marriages, indirect contributions like homemaking are given more weight.
Proportions are determined on a case-by-case basis, and there is no automatic presumption that both parties contributed equally.
Ultimately, the Court’s goal is to achieve a just and equitable division of assets in a manner that considers the unique circumstances of each case, ensuring fairness for both parties.
4. How Does The Court Determine The Division Of Assets?
In addition to the above, the Court will also take into account the following when adjusting the ratio of each party’s contributions, direct and indirect:
- The length of the marriage: Indirect contributions are generally more significant in longer marriages involving children.
- The size of the matrimonial assets: If assets are very large and accumulated by a single party, direct contributions will be given more weight.
- The extent and nature of the indirect contributions: Not all indirect contributions hold equal weight. For example, if one party had sacrificed career opportunities to stay home and care for the home or children, their indirect contributions might hold more leverage. On the other hand, if a domestic helper had been hired to help out in the household, the indirect contributions by both parties would be considered less significant.
5. What Happens If My Spouse Doesn’t Disclose Their Matrimonial Assets?
In some cases, one of the spouses may attempt to hide information about matrimonial assets from their partner. If you think your husband or wife may not have been truthful about their assets, here’s what you should know:
Declaration Of Assets
As mentioned, couples must disclose their assets during the ancillary hearing. Assets should include everything that has value:
- Properties
- Bonds
- Mutual funds
- Cash value of insurance policies
- Cash
- Savings
Sometimes, spouses may attempt to withhold information regarding their assets without legitimate reasons. For example, they may overstate their debts, under-declare their income, or transfer assets to close friends or relatives.
How To Find Hidden Assets
Any suspicions regarding under-declared assets must have evidence to support them. If you need to obtain concrete evidence against your spouse, you can formally request a full disclosure of your spouse’s assets from the Court.
Before you request a full disclosure or a discovery, you must state your reason for the request and the documents needed. For example, you may need your spouse’s tax income returns. Other documents may include:
- Loan applications
- Personal net worth statements
- ATM withdrawals
- HDB title deed
- Credit card receipts
If you can’t obtain this evidence alone, you may resort to questioning your spouse. Ask them specific questions about their assets. Don’t be too aggressive, as this could leave you empty-handed. Instead, be upfront and rationalise the importance of disclosing their assets with your spouse.
6. How To Protect Your Assets From Divorce?
Divorce can often lead to complex issues around the division of matrimonial assets in Singapore, and protecting your financial interests is crucial. Here are some key steps to help safeguard your assets:
Have A Legally Binding Agreement In Place
One effective way to protect your assets is to have a prenuptial or postnuptial agreement in place. These agreements outline the division of assets in the event of a divorce and can help clarify how matrimonial assets will be split.
A prenuptial agreement is made before marriage, while a postnuptial agreement is created after marriage. Both serve to protect each party’s individual assets and ensure that any division is carried out in a structured manner.
Keep Inheritance And Gifts Separate
It’s important to keep inheritance, gifts, and personal assets separate from joint marital property. However, any inheritance or gifts received during the marriage can easily be considered part of the matrimonial assets if they are mixed with joint accounts or used for the family.
To avoid this, ensure that these assets are maintained separately and are not used for joint purchases or family expenses.
This is particularly important as gifts and inheritances that have been used to substantially improve the matrimonial home or shared assets could otherwise be included in the division of matrimonial assets.
Regularly Review Your Financial Situation
It’s essential to regularly review your financial situation, especially regarding joint accounts, investments, and other assets shared with your spouse. By staying on top of your finances, you can better protect your interests in the event of a divorce.
This includes keeping track of your direct contributions and any indirect contributions, such as caregiving or maintaining the family home, which is crucial when determining how to divide matrimonial assets.
Additionally, seeking legal advice from experienced divorce lawyers is highly recommended. They can provide guidance on structuring your assets in a way that safeguards your interests, ensuring you are prepared for such future events as divorce proceedings or an Out-of-Court settlement.
A structured approach to managing your financial matters, with regular reviews, will help you and your spouse reach an agreement on asset division, potentially avoiding lengthy Court battles.
Conclusion About The Division Of Assets In Divorce In Singapore
The divorce rate in Singapore is considered one of the highest globally. It’s no surprise that many of these divorces often end up contested. Couples will take to Court to appeal a divorce settlement, including the division of matrimonial assets.
The Court will weigh several factors in distributing matrimonial assets. Marriages are often complicated, and no umbrella decision can apply to each case. You must speak to an experienced divorce lawyer in Singapore to clarify your divorce situation.
Tembusu Law is a modern-day Singapore law firm dedicated to providing tailored legal advice to our clients. If you are experiencing any criminal law matters, our criminal lawyer in Singapore is also prepared to help.
Get in touch with us for a free 30-minute legal consultation regarding your case.
Frequently Asked Questions About Division Of Assets In Divorce In Singapore
Are Matrimonial Assets Split Equally In A Divorce?
No. The Court does not presume an equal distribution of the assets between the couple. Their ruling will be based on direct (financial) and indirect (non-financial) contributions.
Who Is More Financially Well-Off After A Divorce?
On average, men become more financially well-off compared to women after a divorce. Men may gain a 30% increase in income, while women may experience a 20% drop.
How Are Matrimonial Assets Divided After A Divorce In Singapore?
The Court usually looks into a couple’s direct and indirect contributions. However, it may also consider the following when dividing matrimonial assets:
- Marriage duration
- Matrimonial pool size
- Children’s needs (if any)
How To Financially Protect Your Assets From Your Spouse During A Divorce?
- Produce a copy of your credit report
- Separate your debts
- Know your assets
- Analyse your cash flow
- Legally file for separation/divorce
