Divorce: Division of Assets, Maintenace of Wife & Child In Singapore

What are Matrimonial Assets?

As defined under the law, matrimonial assets include all property acquired during marriage. Generally, properties acquired before the marriage are not matrimonial assets unless they are ordinarily used by the family or substantially improved by both or the other party.

Similarly, assets acquired by way of “gifts” or “inheritance” are not matrimonial assets unless they refer to the “matrimonial home” or is an asset which has been substantially improved by both or the other party. Common examples of assets which may be put up for division include businesses, insurance, shares, car, savings, CPF balances and jewellery.

Division of Matrimonial Assets

The court has the power to order the division of matrimonial assets in a “just and equitable manner”. Some factors that the court will consider in arriving at a just and equitable division include:

1. Extent of Contribution
The Court will consider the extent of the contributions made by each party whether the contribution is financial (direct contributions) or non-financial (indirect contributions)* towards obtaining, improving or maintaining the particular asset. *Indirect contributions include:
1. Maintaining the property (By cleaning, repairing etc);
2. The extent of the contributions made by the parties to the welfare of the family, including taking care of the household or caring for the family or any aged or infirm relative or dependent of either party, as decided in case law; and
3. Giving of assistance or support which aids the other party in the carrying on of his or her occupation or business.
2. The needs of the children of the marriage
The Court will take into account the needs and welfare of the children of the marriage and to whom the care and control of the children have been given to.
3. Agreements between the parties prior to divorce
The Court will also take into consideration agreements made between the parties prior to the divorce. One example of such an agreement includes pre-nuptial agreements.
4. Financial independence of parties after divorce
The Court will also take into consideration the working abilities and earning capacity of the parties in dividing the matrimonial assets.
5. Debts undertaken by parties
Debts undertaken by parties towards the joint benefit of both parties or for the benefit of any child of the marriage would be also considered by the Court in division of the matrimonial assets.
6. Other considerations
In addition to the above considerations, the Court can also, in relevant cases, take into consideration:
• Financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future;
• Standard of living enjoyed by the family before the breakdown of the marriage;
• Age of each party to the marriage and the duration of the marriage;
• Any physical or mental disability of either of the parties; and
• The value to either of the parties to the marriage of any benefit (for example, a pension) which, by reason of the dissolution or annulment of the marriage that party will lose the chance of acquiring.

Child Maintenance

In Singapore, children are entitled to financial support from their biological parents until the age of 21. However, maintenance orders may be extended for children above the age of 21 under certain circumstances- such as if they are pursuing their tertiary education or undergoing national service.

Courts generally arrive at a final maintenance order after taking into account a child’s education, financial and other living expenses.

Once made, maintenance orders may be varied under limited circumstances- for instance, if there is a substantial change in the health of earning capacity of the parent contributing to the maintenance.

Who needs to contribute to child maintenance?
Under the law, it is the duty of both parents to maintain or contribute to the maintenance of his or her children, regardless of whether they are legitimate or illegitimate children.

If it is proven that a parent has refused to provide reasonable maintenance for a child who is unable to maintain himself, a court may order that the parent pay a monthly payment or one-time lump sum for the maintenance of the child.

Spousal Maintenance

In Singapore, under Section 113 of the Women’s charter, the court may order the husband to pay maintenance to his wife/ex-wife either during granting or subsequent to the grant of a judgment of divorce, judicial separation or nullity of marriage. There is no need to file for a divorce before applying for the maintenance.

The court has the discretion to decide on the quantum of maintenance required to be paid to the wife/ex-wife, taking into account all the facts of the case.

Section 114 of the Charter lists out the factors that the court will consider. These include:

• The salary and earning capacity of each party in the past, present and future
• The financial needs and obligations of each party in the future
• The standard of living of each party before the marriage broke down
• The age of both parties and how long they were married for
• Any direct and indirect contributions made by each party to the household
• Any losses suffered by each party as a result of their marriage

How is it paid?
Maintenance can be paid in either a lump sum, or in periodic payment.