What Amounts to Matrimonial Assets?

The article governs the division of matrimonial assets among the non-Muslims in Malaysia. Matrimonial assets are assets that are gained during the marriage. This includes all movable properties such as monies, cars, bonds, shares, jewelry, EPF/ KWSP, insurance policies, gratuity payments, employment and retirement benefits, and etc and all immovable properties such as matrimonial home, land, shop lot, factory, and etc.

If the properties are bought before the marriage, it is not deemed as matrimonial assets.

Court’s Powers

Section 76 of the Law Reform (Marriage and Divorce) Act 1976 gives the power to the Malaysian court to order the division between the parties of any assets acquired during the marriage when granting a decree of divorce or judicial separation.

A married couple seeking for a divorce should know that all their properties in Malaysia or overseas may be divided between them, and they can decide who gets what, even when either party or both parties does not agree with the arrangement.

By virtue of s.76(5) of the same Act, if the assets owed before the marriage by one party but have been substantially improved during the marriage by the other party or by the joint efforts of the husband and wife, then such property shall be deemed as matrimonial assets.

If the property is deemed as ‘matrimonial property’, the wife shall have a right to some shares or division of the property/assets even though the property is under the husband’s name only.

The wife needs to have substantiate written proof such as receipts, payment of bills, instalments, and etc to substantiate the share of distribution.

How Matrimonial Assets are Divided?

The court when exercising its power in dividing matrimonial assets shall have regard to the contribution(s) made by either party when it comes to money and property of work towards acquiring of the assets; any debts owing by either party for their joint benefit; and the needs of the minor children of the marriage (if there is any).