How matrimonial assets are divided in a Singapore divorce

What counts as a matrimonial asset

Division of matrimonial assets is one of the ancillary matters the court deals with after it grants Interim Judgment. The rules are in section 112 of the Women's Charter, which asks the court to divide the assets in a way that is just and equitable. That is not the same as an automatic half-and-half split.

As a broad rule, anything one or both spouses acquired during the marriage goes into the pool. That covers the family home, bank savings, CPF savings built up during the marriage, shares and other investments, cars, insurance policies that have a cash value, and business interests. Assets held overseas are included too and must be disclosed.

Gifts, inheritances and assets from before the marriage

An asset a spouse received as a gift or inheritance is usually left out of the pool. It is brought in if it became the matrimonial home, or if the other spouse (or both spouses together) substantially improved it during the marriage.

Something owned before the marriage can also become a matrimonial asset. This happens if the family ordinarily used or enjoyed it while living together, for example as their home or the family car, or if it was substantially improved during the marriage by the other spouse or both of them.

Substantial improvement means putting in money or something worth money, such as paying for renovation works. A rise in market value on its own does not count. Because the answer turns on an asset's history, documents that show where the money came from, such as purchase papers, bank statements, or a will or deed of gift, can make a real difference.

The structured approach for most marriages

In ANJ v ANK [2015] SGCA 34, the Court of Appeal set out a structured approach that applies to most marriages, particularly where both spouses worked. It runs in three broad steps.

• Direct contributions: the court gives each spouse a percentage for what they paid towards acquiring or improving the assets, such as the purchase price, loan instalments and renovation costs.
• Indirect contributions: the court gives each spouse a percentage for what they did for the family's well-being, both financially (such as household bills) and otherwise (such as caring for the children and running the home).
• Average and adjust: the two percentages are averaged, and the court may give one of them more weight depending on the facts of the marriage.

Single-income and dual-income marriages

In TNL v TNK [2017] SGCA 15, the Court of Appeal said the structured approach should not be used for single-income marriages, where one spouse was the earner and the other was the homemaker. In long marriages of that kind, past decisions have tended towards dividing the assets equally.

Whether a marriage counts as single-income depends on the facts across the whole marriage. A spouse who worked for some periods may still be treated as the homemaker if that was their main role. For long dual-income marriages, the Court of Appeal in UYQ v UYP left open whether there should be a similar leaning towards equality, and said the particular facts must always be considered.

The matrimonial home and HDB flats

The family home is a matrimonial asset, however and whenever it was acquired. The court has a range of options. It can order the home to be sold and the proceeds split, order one spouse to transfer their share to the other (often with a payment in return), or postpone a sale, for example until the youngest child reaches a certain age.

For an HDB flat, HDB's own rules decide which options work in practice. A spouse who wants to keep the flat must meet HDB's eligibility conditions. Where CPF savings were used to buy the property, the amounts that must be refunded to each spouse's CPF account on a sale or transfer need to be worked out as part of any proposal. HDB rules change from time to time, so it is worth checking the current position before settling on a plan.

Speaking with a lawyer

How the pool is defined and divided turns on the history of each asset and the facts of the marriage, so it can help to have a family lawyer look at your documents before you take a position.