Protecting Non-Matrimonial Assets in Singapore

A crucial component of the divorce process is the division of assets, where assets accumulated during the marriage are divided between ex-spouses. A common point of contention between ex-spouses is what will happen to those assets acquired before or after the marriage, such as premarital wealth, inheritance or properties.

This guide explores which assets are matrimonial assets and strategies for safeguarding non-matrimonial assets.

Understanding Matrimonial Assets

Matrimonial assets comprise property acquired during the marriage. These may include the family home, real estate, pensions, savings, vehicles, furniture, stocks, bonds, and businesses. Matrimonial assets will be divided between ex-spouses during divorce.

Identifying Non-Matrimonial Assets

Non-matrimonial assets, on the other hand, are less likely to be divided during divorce proceedings. Typically, non-matrimonial assets include property acquired by one party before or after marriage, gifts, or inheritance received by one party.

Exclusion of Non-Matrimonial Assets

Contrary to popular belief, non-matrimonial assets are not automatically excluded from division. The Court will decide whether certain non-matrimonial assets should be excluded from division with reference to the facts of each case.

A critical factor that the Court will consider is whether the asset in question remains separate from the pool of matrimonial assets. Assets acquired before or after marriage that are kept distinct from assets acquired during marriage may be considered to be non-matrimonial assets that are excluded from division.

Conversely, assets that are commingled with marital assets may be liable for division.

Protecting Your Assets

Parties may consider entering into prenuptial or postnuptial agreements to exclude certain assets from division. These agreements outline how assets will be divided in the event of divorce and can ring-fence non-matrimonial assets, such as property or inheritance. These agreements are one of the factors that the Court will consider when deciding on the division of assets.

Property

In order to ensure that property acquired before or after the marriage is not included in the pool of assets for division, parties have to ensure the following:

• That the property is not used as the matrimonial home;
• That the property is not ordinarily used by the family;
• That the property is not substantially improved by the other spouse; and
• That the property is kept in that party’s sole name.

Money

In order to ensure that money earned before or after the marriage is not included in the pool of assets for division, parties have to ensure the following:

• That the money is not used to benefit the family;
• That the money does not increase in value through the effort of the other spouse;
• That the money is not comingled in a bank account that is used during the marriage;
• That the money is kept in a bank account in that party’s sole name.