Introduction
I was recently invited by Expat Living to contribute my views to their guide on “How to apply for divorce in Singapore”. While the article covers various procedural aspects of expat divorce, I chose to focus my commentaryon one of the most frequently misunderstood areas of family law: the division of assets.
Specifically, there is a pervasive myth that items gifted between spouses, whether it be a diamond anniversary necklace, a luxury handbag, or even an inherited property, are automatically excluded from the pool of matrimonial assets.
As I shared in the interview, the reality under the Women’s Charter is often quite different.
The “Interspousal Gift” Rule
Many of my clients are surprised to learn that in Singapore, a “gift” from one spouse to another is generally treated as an interspousal gift. Unlike a gift from a third party, which is usually excluded, an interspousal gift is considered part of the matrimonial pool.
For example, if a husband purchases a Hermès handbag for his wife using his income during the marriage, that handbag is technically an asset acquired during the marriage. In the event of a divorce case, it is subject to division, just like the family car or the savings account.
The Complexity of Inheritance
The same logic can apply to inheritance, which is another area fraught with confusion.
The general rule is that an inheritance is excluded from division. However, this protection is not absolute. As I explained to Expat Living:
“Under the Women’s Charter, gifts [and inheritance] can be classified as matrimonial assets if they have been substantially improved or used for the family’s benefit.”
If you inherit an apartment from your parents, but you subsequently use family funds to renovate it, or you move in and live there with your spouse and children, that property may lose its “excluded” status. It has been “transformed” into the matrimonial home, and the Court may order it to be divided to ensure fairness.
Why the Law is Designed This Way
To the layperson, this can feel unintuitive. Why should a gift be returned?
The rationale behind the law is fairness. The Women’s Charter recognises that marriage is an equal partnership. Contributions are not just financial; they are also domestic. By casting a wide net over “matrimonial assets”, the Court ensures that a nonworking spouse who may have facilitated the earning spouse’s career is not left destitute while the other party walks away with valuable “gifts” purchased with family funds.
Conclusion
Navigating the division of assets requires more than just a calculator; it requires a nuanced understanding of how the Courts view “contribution”
I am grateful to Expat Living for the opportunity to shed light on these complexities. For expats and locals alike, the key takeaway is simple: never assume an asset is “safe” based on sentiment alone. The law is practical, and being informed is the first step to protecting your future.
