In a divorce, the court has the power to divide matrimonial assets between the divorcing parties in proportions that it thinks are just and equitable. Matrimonial assets include any asset acquired during the marriage or acquired before the marriage and used by the couple or their children during the marriage or which had been substantially improved during the marriage, except for gifts or inheritances that were substantially improved during the marriage, unless they are the matrimonial home.
Therefore, CPF monies, the matrimonial home paid using CPF monies, and CPF investments that were accumulated during the marriage or paid towards the acquisition of the matrimonial home can be considered matrimonial assets to be divided by the court in a divorce.
To ensure a fair distribution between you and your ex-spouse, the court will consider factors such as the extent of financial and non-financial contributions to the marriage and the needs of each party after the divorce. Financial contributions include money spent to acquire matrimonial assets, while non-financial contributions include looking after the home.
If your ex-spouse is a Singapore Citizen or Singapore Permanent Resident and has been granted a portion of your CPF monies, the division can be done in two ways: transfer order or charging order. If your ex-spouse is a foreigner, the court may only make a charging order.
Under a transfer order, the court can order an immediate transfer of your CPF savings to your ex-spouse’s CPF account, with the amount subject to the court’s discretion. This transfer of CPF monies can take place without you setting aside your retirement sum first. Under a charging order, your ex-spouse will be granted their share of your CPF monies in cash only when you become eligible to withdraw your CPF savings, subject to you setting aside your retirement sum first.
If the CPF monies were used to buy the matrimonial home, the court can order you to transfer your share of the matrimonial home to your ex-spouse, with partial or no refunds made to your CPF account for your contributions to the property’s purchase price.
If you have been ordered by the court to transfer your share of CPF investments to your ex-spouse, there are two ways to do so: transfer order or charging order. The transfer order is done through an immediate transfer of your investments to your ex-spouse or a cash-in of your investments with the sale proceeds transferred to your ex-spouse. The court can also order a charge to be placed on your investment sale proceeds, permitting your ex-spouse to withdraw the sale proceeds in cash when you turn 55 years old.
It is essential to understand the key proceedings and information to ensure that CPF-related assets are divided equitably in a divorce. Therefore, it is recommended that you seek legal advice to understand your rights and obligations.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
