Division of Assets After a Divorce

If I get a divorce, do I automatically get 50% of the assets?

According to the case of Yap Yen Piow v Hee Wee Eng [2016], there are three types asset/property for the purposes of divorce.

• Matrimonial property:

Property which is acquired by the joint effort/shared finances of both husband and wife during the marriage. This may include the family home, joint savings and others.

• Non-matrimonial property:

Property which is acquired by only one party to the marriage.

• Property acquired before marriage:

Property which one parties bought before he/she gets married.

In the event of a divorce, do I automatically get half of the share of the property?

Division of matrimonial property subject to these considerations:

• Contributions made by you or your partner towards acquiring the assets
• Any debts accrued by you or your partner for your joint benefit
• The needs of any minor children (below the age of 18)

Note that the “contributions” mentioned above are not restricted to just monetary consideration. It can include payment towards mortgage, costs in renovations or physical efforts in improving the condition of the property. There is no a fixed formula that the court will adopt, and it is entirely at the court’s discretion how to split the property. So, you will only get a 50:50 division if the property is jointly acquired, or if the court is satisfied that you have contributed a sum or efforts equivalent to 50% of the matrimonial property.

Division of non-matrimonial property subject to these considerations:

• The contributions made by the non-acquiring partner towards the welfare of the family such as through caring for the family or looking after the home.
• The needs of any minor children (below 18 years of age)

The courts can divide the non-matrimonial property in a division that they find reasonable, but any division ordered must be more beneficial (ie: greater proportion) to the acquiring party. In other words, if the property was acquired by the sole effort of one party, that party would have the greater share in the property. For the party who gains custody of the child, the division of assets could be greater for them, because the welfare of child is always of paramount consideration.

Division of Property Acquired before Marriage

The court can also consider property acquired before marriage as matrimonial property if the property has “substantially improved on during the marriage.” For example, if you bought a house some years before your marriage under your sole name, the house can still be treated as a matrimonial property if after marriage, both of you work together towards renovating the house and make it a better family home.

The answer is…there is not set answer. The laws were drafted to be more open-ended because in such a complicated family dynamic mixed with every day concerns of financial contributions and non-financial contributions, no situation is ever alike. Also, as mentioned by Aileen Lau, there is no fixed formula for the courts to adopt. It depends on their discretion. You may be shocked to learn that there have also been cases where a spouse’s EPF savings was also subject to division.

In the case of Koay Cheng Eng v Linda Herawati Santoso, the husband’s EPF contributions during the marriage was divided equally with his wife. The judge was of the opinion that as the wife had entered the marriage with the intention of growing old with the husband and his EPF would have been used for both their benefits. The husband then should not be allowed to fully benefit from his EPF after the breakdown of the marriage.

Concluding thoughts

At the end of the day, the sections listed above are meant to be a mere guide for the courts to follow but there is no absolute guarantee that you would be entitled to a certain percentage of the property upon divorce. The courts have the discretion to decide based on what they see fit in accordance with the statutory considerations they need to keep in mind.