Generally, divorces can be an emotionally challenging process and it can be made more frustrating and complex when it comes to the issue of division of the matrimonial assets. In most divorces, the division of matrimonial assets can be a crucial aspect of divorce proceedings, as it involves the fair distribution of property and finances accumulated during the marriage. Understanding the factors and considerations involved in the division is essential for couples navigating the dissolution of their marriage in Singapore.
- Definition of Matrimonial Asset
The legal framework governing the division of matrimonial assets in Singapore is primarily outlined in the Women’s Charter 1961 (“Women’s Charter”), which provides the source for matrimonial law in the country. Under section 112(10) of the Women’s Charter, matrimonial assets are defined as the following:
- Any asset acquired before the marriage by one or both parties to the marriage and –
- (i) The asset(s) is ordinarily used or enjoyed by either both parties or one or more of the children while the parties are residing together for shelter or transportation or for household, education, recreational, social or aesthetic purposes; or
- (ii) The asset(s) has been substantially improved during the marriage by the other party or by both parties of the marriage; and
- Any other asset of any nature acquired during the marriage by one party or both parties to the marriage.
However, assets that are not considered matrimonial assets are those acquired by one party at any time by gift or inheritance and that has not been substantially improved during the marriage by the other party or by both parties to the marriage.
In Singapore, the principle guiding the division of matrimonial assets is that of fairness and equity. The court aims to achieve a just and equitable division of assets, taking into account various factors such as the contributions of each party to the marriage, the needs of the children (if any), the financial status of both parties, and any other relevant circumstances.
Section 112(1) of the Women’s Charter provides that the court has power to order the division of matrimonial asset or the sale of any such asset and the division between the parties of the proceeds from the sale of a matrimonial asset in proportions that the court thinks just and equitable.
Further, section 112(2) of the Women’s Charter provides for the considerations that should be taken into account when making orders as to the division of any matrimonial asset, non-exhaustive considerations include:
- Extent of each party’s contributions, including money, property or work towards acquiring, improving or maintaining the matrimonial assets.
- Any debt or obligation incurred or undertaken by either party for their joint benefit or for the benefit of any child of the marriage;
- The needs of the children (if any) of the marriage;
- Each party’s contributions to the welfare of the family, including looking after the home or caring for the family or any aged or infirm relative or dependant of either party;
- Any agreement between parties relating to the ownership and division of the matrimonial assets made in contemplation of divorce;
- Any period of rent-free occupation or other benefit enjoyed by one party in the matrimonial home to the exclusion of the other party;
- The giving of assistance or support by one party to the other party (whether or not of a material kind), including the giving of assistance or support which aids the other party in carrying on of his or her occupation or business; and
- The matters referred to in section 113(1) (as long as they are relevant).
In addition to the factors considered above, another factor that the Court might consider relevant is the length of the marriage, i.e., a short or long marriage.
In Singapore, the accumulated value of the matrimonial assets will determine which court has the jurisdiction to hear the matter, i.e., the Family Justice Courts or the Family Division of the High Court.
If the total value of the matrimonial assets is less than $5,000,000, the matter will be heard in the Family Justice Courts. However, if the total value of the matrimonial assets is more than $5,000,000, the matter will be heard in the Family Division of the High Court.
This is relevant information for when you are considering engaging a divorce lawyer in Singapore as it may be considered towards the legal fees as well as the costs of filling fees.
- Dividing Matrimonial Assets
The process of dividing matrimonial assets in Singapore typically begins with both parties disclosing their assets and liabilities to each other. This is done through a process known as discovery, where both parties provide full and frank disclosure of their financial situation. Once all assets and liabilities have been disclosed, negotiations can begin to reach a mutually acceptable settlement.
If the parties are unable to reach a settlement through negotiation or mediation, the matter may be brought before the court for adjudication. In such cases, the court will consider all the relevant factors mentioned earlier and make a decision on the division of assets based on what it deems fair and equitable in the circumstances.
Further, the Courts have adopted a “structured approach” towards the division of matrimonial assets for dual income marriages. In ANJ v ANK [2015] 4 SLR 1043, the court provided the following:
- First step – Determine the ratio of the parties’ direct contributions by considering the financial contributions each party made towards acquiring or improving the matrimonial asset.
- Second step – Determine the ratio of the parties’ indirect contributions to the well-being of the family.
- Third step – With the two ratios identified in the first and second steps, the Court then determines the average percentage contribution of each party.
- Fourth step – Further adjustments may be made to the average percentage contributions to take into account, amongst other things, the factors stated in section 112(2) of the Women’s Charter.
However, in “long single income” marriages, where only one spouse is the sole income earner and the other is the homemaker, the Court of Appeal in TNL v TNK and another appeal and another matter [2017] 1 SLR 609 stated that the courts generally tend towards an equal division of the matrimonial assets between the parties.
Dividing matrimonial assets in Singapore can be a complex and contentious process, but it is essential for ensuring a fair and equitable resolution to the dissolution of marriage. By understanding the legal framework, principles, and factors involved in asset division, couples can better navigate this aspect of divorce proceedings.
Seeking legal advice and guidance from an experienced divorce lawyer in Singapore can also be invaluable in achieving a satisfactory outcome in the ancillary stage of the proceedings. Ultimately, the goal is to achieve a fair and equitable division of assets that takes into account, among other things, the contributions, needs, and circumstances of both parties involved.
