Any family that goes through a divorce knows how tough it can be.
Tensions can be high and numerous issues need to be resolved. For Singaporean couples contemplating divorce, the question that needs to be answered is:
“What happens to our assets after we separate?”
This is one of the most pressing concerns that must be addressed. Let’s take a look at the fundamentals of divorce and property partition in Singapore.
Singapore's Asset Division Laws: An Overview
The first step in splitting assets during a divorce in Singapore is to familiarize oneself with the laws that apply. When a couple decides to divorce, the assets acquired throughout their marriage are typically split into 50/50.
The Women’s Charter defines matrimonial assets as:
- Any assets or property that one or both spouses accumulated during the marriage
- Assets that either one or both parties or their children utilize for personal or other purpose
- Any assets obtained before the marriage that have improved during the marriage
The couple’s CPF funds, matrimonial home, and family insurance policies are all examples of common matrimonial assets. Even lottery prizes won during the marriage are considered marital assets.
This does not apply to:
- Any gifts and inheritances
- Unimproved gifts or inheritance received during the marriage
How Are Assets Divided in Singapore Divorces?
When couples divorce in Singapore, assets are not always divided equally. Rather, it strives for equity by considering each party’s contributions and unique circumstances when dividing up assets.
This fair and equal distribution is determined by a number of considerations, including:
- The extent of money put into these assets;
- The degree to which non-monetary contributions have been made to the family’s well-being;
- Duration of the marriage;
- Each party’s current financial situation;
- The needs of the children involved in the marriage
- Existing agreements between the parties
One spouse may be given a larger share of marital assets if they had a higher financial contribution during the marriage. Another factor that could increase a person’s share of the assets is custody of any children. If you don’t like how the assets were divided, you can file an appeal.
When couples decide to divorce, how do they divide their marital assets?
1. Simplified track
Divorcing couples who reach an agreement on issues including child custody, spousal support, property division, and the overall cost of the divorce can use the simplified track.
Divorce papers in Singapore can be filed with the Family Court with minimal hassle. Your uncontested divorce hearing date should be set within four to six weeks if everything is in order. The simplified track can be completed in as little as four months without the need for any involvement from the court, making it a faster, cheaper, and less emotionally taxing option.
2. Normal Track
The normal track is when things start to get tricky. The process consists of two parts:
First phase: addressing the divorce itself
Second phase: deals with auxiliary issues
When you and your spouse still can’t agree on minor issues, the court will arrange a case conference to discuss them.
It can take anything from 12 months to 18 months and a lot of money to get through a divorce application on a normal track.
What Is the Average Price of a Divorce in Singapore?
The simplified track divorce process in Singapore includes the following costs:
- S$42 for the divorce petition
- S$7 for the Statement Claim
- S$7 for the Statement Particulars
- S$7 for the plaintiff’s Proposed Matrimonial Property Plan
- S$7 for the plaintiff’s Proposed Parenting Plan
- S$7 for the appearance Memorandum
- S$7 for the services Acknowledgement
- Legal representation (if necessary): $1,500 and above, depending on the circumstances of the case.
The divorce in Singapore on the simplified track might cost anywhere from S$1,584 and up.
On the other hand, the normal track divorce process costs as follows:
- S$63 for the pretrial Motion to Stay Proceedings
- Payment of S$7 is required to request that the parties be excused from attending the hearing for an uncontested divorce
- Cost of filing an AEIC is S$0.70 per page, with a cap of S$7
- Legal representation (if required) might cost anywhere from S$13,000 to upwards of S$26,000
The average cost of a divorce in Singapore is S$13,077 and up if you follow the normal track.
Get the Assistance You Need After Your Divorce
It’s never easy getting a divorce, but it’s even more difficult when there are significant assets at play. For all parties concerned, it may be an emotionally and financially draining ordeal.
However, divorcing couples can protect their interests and make a fair settlement agreement that benefits both parties by learning about the asset division process in Singapore and considering potential financial implications like alimony payments.