For many couples, divorce is anathema. Yet, not talking about it is no guarantee that it would not happen. In a divorce, assets that are considered matrimonial can be divisible by the court and distributed between the spouses.
Regardless of the wellbeing of your relationship and marriage, it is helpful knowledge to know what are considered matrimonial assets in a divorce.
Read Also: What Is The Process For Getting A Divorce In Singapore – And How Much Will It Cost?
Definition Of Matrimonial Assets According To The Women’s Charter
In Singapore, marriages and divorces are governed by the Women’s Charter. Within the Charter, there is the definition of matrimonial assets:
Source: AGC
Assets Before Marriage Can Be Considered Matrimonial Assets
While the common understanding is that our personal assets before the marriage are individual assets, this may not be true in certain cases.
Namely, if the asset was “used or enjoyed by both parties or one or more of their children while the parties are residing together for shelter or transportation or for household, education, recreational, social or aesthetic purposes”. An example of this is if you inherited a family property before your marriage and upon your marriage, you and your spouse decide to live in it together after marriage. This inheritance could be considered a matrimonial asset, instead of an individual asset.
Another case is when the asset “has been substantially improved during the marriage by the other party or by both parties to the marriage”. Taking the same example of an inherited property, instead of living in it together with your new spouse, you decide to rent it out. During the marriage, your spouse contributes to the renovation of the inherited property and improves its value. In this case, the inherited property could also be considered a matrimonial asset, instead of an individual asset.
Read Also: What Happens To Your HDB Flat After A Divorce?
Assets Acquired During Marriage (Except Gifts And Inheritance) Can Be Considered Matrimonial Assets
In general, any asset acquired during the marriage can be considered matrimonial assets.
This could include lottery winnings as exemplified in a 2019 case where the court ruled that lottery winnings count as matrimonial assets. According to the judges panel, the winnings were mainly used to pay down the mortgage of the matrimonial home and deposited into a joint account. The judges said that the winnings were meant to benefit the whole family and the ruling was “consistent with the concept of marriage as an equal co-operative partnership of efforts”.
However, there can be also cases where assets acquired can be excluded from matrimonial assets. For example, in a divorce case of a married man who bought a property in his name as an investment with another woman, the courts ruled that the property was excluded from the matrimonial assets. The investment aspect was supported by documentary evidence from the woman of monthly transfer for mortgage and thus her contribution to the property was excluded from the matrimonial assets of the divorce, even though the property was bought under the name of the married man.
Gifts And Inheritances Are Not Considered Matrimonial Assets
Generally, gifts and inheritances are not considered matrimonial assets. This means that the Birkin handbag gifted by your mother and the jewellery inherited from your grandmother are likely yours to keep. In determining whether a gift is intended for a single spouse, the court also considers the donor’s intention.
If gifts and inheritances are substantially improved by your spouse or both spouses during the marriage, they can also be considered matrimonial.
The Court Make The Final Determination
The court makes the final decision on what is considered matrimonial assets and how it should be distributed.
Living together in a home during marriage may not always constitute a matrimonial home. The court makes the final determination regarding matrimonial homes and considers other aspects. For example, in a case reported in the Straits Times regarding a woman who lived with her husband in his parents’ home, the court ruled that the property was not the matrimonial home of the couple, but was the matrimonial home of the parents and thus, not part of the divorce proceeds.
To protect assets, couples may decide to have a pre-nuptial agreement before marriage. In Singapore, pre-nuptials can be referenced by the court during a divorce but are not necessarily upheld if the term of the agreement contravenes the Women’s Charter. However, it can be helpful in determining assets acquired before marriage and inheritances. While these pre-marital assets and inheritances (as well as gifts) are generally not considered matrimonial, they can be included if they have been substantially improved during the marriage by your spouse or both spouses.
The court can also decide to divide the assets differently from what is agreed in a prenup. This is because the Women’s Charter sets out the court has the power to order the division in “proportions as the court thinks just and equitable”.
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