How are matrimonial assets divided in a Singapore divorce?

What counts as a matrimonial asset

Broadly, matrimonial assets are assets acquired by either or both spouses during the marriage, whether they are held in one name or jointly. Assets owned before the marriage can also count if the family ordinarily used them, for example as a home, or if they were substantially improved during the marriage.

• The matrimonial home, whether an HDB flat or private property
• CPF savings built up during the marriage
• Bank savings and fixed deposits
• Shares, unit trusts and other investments
• Cars, insurance policies and property overseas

Gifts and inheritances

Gifts and inheritances received by one spouse are usually kept out of the pool. There are two main exceptions: where the asset became the matrimonial home, and where it was substantially improved during the marriage by one or both spouses. Whether an exception applies depends on how the asset was actually used and dealt with.

Just and equitable, not automatically equal

The court divides the pool in whatever proportions it considers just and equitable. That is not a presumption of a 50:50 split; each case turns on its facts.

The court takes a broad view rather than doing a strict calculation. The law gives looking after the home and caring for the family the same standing as money, property or work put towards acquiring the assets.

The structured approach

Where both spouses have contributed financially, courts commonly follow a structured approach set out by the Court of Appeal in ANJ v ANK.

• Direct contributions: the court works out a ratio for what each spouse put towards acquiring or improving the assets, such as the purchase price, loan repayments and CPF used.
• Indirect contributions: the court works out a second ratio for contributions to the family's welfare, such as caring for the children, running the household, paying household bills and supporting the other spouse's career.
• Average and adjust: the two ratios are averaged, with more weight given to one if the facts call for it, and the result may then be adjusted for other factors, such as the length of the marriage and the needs of any children.

Single-income marriages, orders and agreement

Courts have said the structured approach is meant mainly for marriages where both spouses earned an income. Where one spouse was the sole earner and the other kept the home, the court takes a broader approach, and in long single-income marriages it has often leant towards an equal division.

The court can order an asset to be sold and the proceeds shared, transfer an asset such as the flat to one spouse, put off a sale until a later date, or order a lump-sum payment. Spouses can also agree on a division, through negotiation or mediation, and have it recorded as a consent order. Either way, both spouses must give full disclosure of their assets, liabilities, income and expenses.

This article is general information about Singapore law, not advice on any particular case.