You may be wondering how divorce affects you financially.
There are 2 key questions that you need to ask to understand how divorce affects you financially.
1. Division of matrimonial assets.
2. Alimony in Singapore (for wives, incapacitated husbands and children).
Definition of Matrimonial Property
To understand more about division of matrimonial properties, we should know the definition of matrimonial property.
Matrimonial property is defined as:
1. Properties acquired during the course of the marriage.
2. Properties acquired before the marriage and used by both parties and their children while parties are living together. For instance, one party could have acquired a home before the marriage and both parties lived in the home with their children during the marriage. The home will be considered as a matrimonial property.
3. Properties bought before the marriage by spouse A and substantially improved during the marriage by spouse B. For instance, the substantial improvements can be a thorough renovation and maintenance of the said property.
Examples of matrimonial property include the matrimonial home, family car, funds in the bank, shares of companies, CPF funds, jewelleries and insurance policies.
It should be noted that gifts or inheritance received by one party do not fall under the definition of matrimonial property, unless it is a matrimonial home or there have been substantial improvements made by the other party.
Division of Matrimonial Properties
In an uncontested divorce in Singapore, parties reach an agreement by themselves on the issue of division of matrimonial properties. Parties are also able to reach an agreement through the process of mediation.
If parties are unable to reach an agreement by themselves, they will go through an ancillary matters hearing before the Court.
The Court will make a decision on the just and equitable division of matrimonial properties by taking into account the following factors:
1. Parties’ direct financial, indirect financial and non-financial contributions.
2. The children’s needs.
3. Any agreement relating to the division of matrimonial properties, made in contemplation of divorce.
4. Any debt incurred by either party for their joint benefit or the benefit of their children.
The Court may decide that parties should:
1. Sell the matrimonial properties and divide the proceeds in a particular proportion.
2. Transfer the ownership of the matrimonial properties amongst themselves.
The Court may also allow one party to continue living in the matrimonial home for a period of time or make an order for spouse A to pay a sum of money to spouse B.
Alimony in Singapore After Divorce
Under the Women’s Charter, the following people can apply for alimony in Singapore during the divorce process:
2. Incapacitated husbands.
In making a decision on alimony in Singapore after divorce, the Court will consider the following:
1. The income, earning capacity and financial means of parties.
2. The financial needs and obligations of parties.
3. The standard of living enjoyed by the family during the marriage.
4. The age of each party.
5. Any physical or mental disability of parties.
6. The contributions made by each party to the marriage to the welfare of the family.
7. The value to either party which by reason of divorce will lose the chance of acquiring.
Alimony in Singapore can be either in a lump sum or periodic payments.
In conclusion, the Court will look at the case holistically and minimize any financial hardship of parties.
If you have more questions on the financial implications of divorce, contact us at +6598330314 (whatsapp).
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