From 1 July 2024, a landmark procedural shift in Singapore’s divorce laws will take effect with the introduction of Divorce by Mutual Agreement (DMA). DMA allows couples to end their marriages amicably without assigning fault or meet lengthy separation requirements.
DMA represents a significant move away from traditional fault-based divorces, promoting a more peaceful and cooperative process.
Although this new law aims to simplify and speed up the divorce process, speak to a Yeolaw Divorce Specialist Lawyer to find out whether your case requires the “truth” of the breakdown of the marriage (e.g. extramarital affair of a spouse, or you have suffered family violence etc) to be presented to the Family Justice Courts to achieve a better outcome for your financial and children’s rights. At Yeolaw, our lawyers will not simply advise you to file your divorce using DMA without taking into consideration the plight you have faced in your marriage that may be favourable to your obtaining better financial and property division or risk your children’s safety with a violent parent!
Parties may still choose to file the divorce under:
In order to file for Divorce by Mutual Agreement, couples must meet the following specific conditions:
Under the new section 95A(6)(a) of the Women’s Charter, the written agreement must include:
The agreement must be made voluntarily, with an understanding of the terms, and an intention to agree accordingly.
Under the newly established section 95A(6)(b) of the Women’s Charter, if the Court determines there is a reasonable chance of reconciliation, it may direct the parties to participate in mediation, counselling, or family support programs. These interventions aim to either repair the marriage or assist the parties in confirming that reconciliation is no longer feasible.
As stipulated in Section 94(1) of the Women’s Charter, the couple must have been married for at least three years, just like any other reasons for divorce stated above.
MSF Co-Parenting Programme: For couples with children under 21, participation in a mandatory Co-Parenting Programme (CPP) is required before filing for DMA. This programme is NOT a family counselling to help you salvage your marriage but aims to help parents understand the impact of divorce on children and promote effective co-parenting. This is usually a 45 minute online zoom session for filing party to attend and upon completion of the course, a certificate of participation will be issued. Should you wish to attend family counselling to try to save your relationship, please visit other family services centres for paid or free counselling sessions.
DMA prioritizes the children’s best interests by promoting cooperative co-parenting and reducing the time families spend in court. Lowering conflict during the divorce process decreases family tension, benefiting children emotionally.
DMA helps couples steer clear of blame and lengthy separation periods, reducing conflict and safeguarding emotional well-being during the divorce process.
By fostering a cooperative approach from the outset, DMA sets the stage for long-term collaboration between ex-spouses especially when it comes to co-parenting, shared financial obligations, and other matters that require continuous interaction.
DMA simplifies the divorce process, which results in lower legal fees. By eliminating unnecessary disputes and extensive communications, it facilitates a more cost-effective resolution.
Although no story to tell for the divorce part, you would still require professional advice on money matters; how the properties and assets should be divided under the law; what is the fair amount of maintenance for yourself and the children. Having professional legal advice from a Specialist Divorce Lawyer could help you make informed decisions and navigate the complexities of divorce with greater confidence and peace of mind.
You may require the expertise of an experienced Divorce Lawyer to engage in negotiation and mediation with your spouse, which can lead to quicker resolutions.
The divorce process involves numerous legal requirements and paperwork that must be accurately completed and submitted. Yeolaw Divorce Specialist Lawyers ensure that all legal documents are properly prepared and filed in accordance with the law. They stay updated on any changes in legislation that may affect the divorce proceedings, ensuring full compliance with legal standards. This meticulous attention to detail helps avoid any legal complications or delays, allowing the divorce to proceed smoothly and efficiently.
For those who choose this path, working with a reputable family law firm like Yeo & Associates LLC is crucial. Our experienced team offers expert guidance,
compassionate emotional support, and a transparent fee structure, ensuring that clients can navigate this challenging time smoothly.
Call Yeo & Associates LLC for a free initial chat with one of our Specialist Divorce Lawyers at +65 6220 3400 or complete our Online Form.
When aspouse painstakingly obtains a court order for the other spouse to pay wife’s maintenance or for child’s support, only to be met with the payor’s refusal to pay or unilateral deductions of the monthly payment, it seems like the current regime caused the victim more pain to seek repayment.
The payor’s are often not deterred by the current law.
Ironically, the victims see that these non-payors have the means to own a new car and enjoy holidays in exotic destinations- one would wonder how such non-payors would crying poor.
The new process in Maintenance Enforcements aims to simplify applications relating to the non-compliance with maintenance orders and to enhance deterrence against non-compliance for those who can pay maintenance but refuse to pay.
There are a lot of factors that one needs to learn when considering divorce proceedings. With that, much of all the necessary information can be easily found via the internet. From the requirements to the process, there are a lot of divorce articles people can look up to understand all of this. However, these could be daunting when going at it alone, most especially what takes place in court. In this article, we will be covering what exactly happens during the divorce proceedings in Singapore. Keep reading to know what to expect in divorce proceedings so you can prepare accordingly.
Before anything else, when you are considering divorce, it is important to understand the two kinds. Uncontested and contested divorces exist within the divorce. In an uncontested divorce, both parties agree on all details regarding your separation. These include child custody, child support, asset division, and alimony. On the other hand, a contested divorce is when both parties cannot come to an agreement with all of the aforementioned details. This is where the divorce proceedings come in, as the court will need to step in in hopes to help find the best arrangement for you and your spouse.
With that, your divorce proceedings will highly depend on the kind of divorce you will have. Both parties will either have to attend a contested divorce hearing or an uncontested one.
For the divorce to qualify as an uncontested divorce, the defendant:
At the court hearing, members of the public are not allowed to attend. Parties and their lawyers (if any) are not required to do so as well. During the proceeding, the court will grant an Interim Judgement if the marriage is deemed broken down irretrievably. Parties may then go to the LawNet & CrimsonLogic Service Bureau to extract this.
However, if the defendant agrees on the divorce but not on the ancillary matters, the court will schedule a date for an ancillary matters case conference after the Interim Judgment is granted.
On the other hand, if the defendant fails to file their MOA or defence within the deadline, parties will have to wait for 3 months from the date when the court grants the Interim Judgment to extract the Certificate of Final Judgment.
Extracting the Certificate of Final Judgment finalises and completes the divorce proceedings.
In a contested divorce , the court may require parties (or their lawyers, if any) to attend a court session. This is known as a case conference before a date for the contested divorce hearing is scheduled.
Only those directly involved in the matter can attend a case conference. If members of each party have a lawyer, they will not be required to attend the case conference.
The hearing will take place after the conference. While it is important to understand that attendance is a must, it is also vital to arrive early, dress appropriately and behave in a courteous manner. If a party does not attend without a valid reason, the court may proceed.
With that, the divorce proceedings may take one or several days, depending on the number of witnesses and the complexity of the case. Once the parties have taken the stand and presented their evidence, the court will grant the Interim Judgement. Similarly, parties may extract this at the LawNet & CrimsonLogic Service Bureau. Once accomplished, an ancillary matters hearing will be scheduled and the issues discussed will be heard during the divorce proceedings at court.
Divorce is never an easy ordeal to go through. Whether it’s made a little bit easier as an uncontested divorce or through the difficulties of a contested one, all the processes can be a lot for one person. At Yeolaw, we are ready to guide you to make this emotional period as smooth and hassle-free as possible. Book a free consultation with us today via +65 6220 3400 or visit our website and start your divorce journey together.
Going through a divorce makes important decisions way more complex than they should be. It becomes more complicated when these decisions include your children and their welfare. You probably have many questions about who gets custody, who will provide for your children, or where they reside. This spectrum will discuss the process and types of child custody in Singapore.
Child custody is the right to a child’s care, control, and maintenance. The court awards this to one of the parents following a divorce or separation proceeding. This involves a “child” under the age of 21 (minor), as defined by the Women’s Charter, of a couple joined by marriage. The Guardianship of Infants Act backs this up with the Women’s Charter and the Administration of Muslim Law Act.
Yet, we must remember that child custody is different from care and control. The difference is that the former grants authority to the custodial parent(s). This involves making major decisions such as the child’s education, religion and healthcare.
On the other hand, only one parent is permissible for care and control. This encapsulates their entire involvement in the day-to-day matters of the child. With that, the other parent will only have minimal periods of access.
In most cases, mothers in Singapore take the care and control of their children. This is similar to child custody, as it is difficult for fathers to fight for the full rights of the child. The father can request, but they must receive the mother’s approval to win. In other circumstances, they can also gain access if the child is at an appropriate age. Additionally, this is applicable if the child can clearly express their desire to stay with the father to the court. Other than this, it is improbable for the court to give the father full care and control.
In some cases, it can be pushed if there is a history of abuse or neglect from the mother. If all else fails, the father may consider pursuing an order for shared care and control. In this case, parents have an equal time split between the two of them. However, this will only be granted if the father was the child’s primary caregiver prior to the divorce. The court will also consider how feasible the arrangement is and what best serves the child’s welfare.
There are four types of child custody orders for divorce in Singapore. These are the following:
The parent granted custody of the child is the sole parent in charge under a sole custody order. They are the sole decision-makers concerning the child.
When there is a clear sign that both parties can no longer cooperate, this is because it proves to be detrimental to the child. This is usually given when the relationship between mother and father is in disrepair. Specifically, in a manner wherein they are acutely acrimonious towards each other and lack communication. Additionally, if there is no means of reconciliation after seeking counselling and meditation.
In other cases, this order applies when a parent “gives up” custody of their child and if there’s abuse found towards the child.
Joint custody order applies if both parents are equally responsible for making significant decisions for their child. This means that parents must communicate and reach a consensus for their child’s welfare.
That said, the Singapore courts have been granting joint custody orders more often than sole custody. This is because the courts recognize that both parents being present in their child’s life is pivotal for their development. They recognize this responsibility carries over even past a failed marriage. Additionally, it proves that neither parent has more right to their child over the other. Thus, it encourages a healthy understanding and cooperation.
Hybrid orders grant custody to one parent. However, the custodial parent must consult with the non-custodial parent. Concerning their child’s well-being, they must reach an agreement.
Lastly, split custody order is when custody is granted to one parent for one or more children, and then custody for the other child/children is given to the other parent. However, this type of custody is not so common since the court usually prioritizes siblings staying together for emotional support.
When you implement this kind of custody, only the custodial parent can have a say over their child. Unless the consent is from the non-custodial parent then it’s an exception. This also applies if the court itself grants permission. However, the custodial parent should not take the child out of the country for more than a month.
Access orders apply to the parent who is not given care and control of the child. In most cases, this is usually for the fathers. This is when it is deemed that the child’s access to the non-custodial parent is beneficial for them.
With that, the Women’s Charter determines what type of quantum of access this parent deserves. This is because they do not stipulate how much time a parent should have access to their child. Instead, the non-custodial parent is granted access time that is considered fair and reasonable under the court’s discretion.
There are only two types of access orders:
1. Unsupervised. Allowing the parent to spend time with the child without the need of a third party supervising the session, or
2. Supervised. Supervised access is usually given to protect the child from potential physical or emotional abuse. Furthermore, this can also be done to assess their relationship with their non-custodial parent.
The type of access orders are decided via Access Evaluation Reports (if necessary). This is especially when both parents are disputing access times. These reports help the court resolve such disputes and will only be accessible by the judge. Said disputes can be how long access should be and whether or not they should be supervised.
Both parents are encouraged to cooperate to find an agreement on the day, time and place for visitation. Once achieved, divorce proceedings are expedited, minimizing the emotional damage to their children.
However, the court will consider non-exhaustive factors when determining the quantum of access. This involves the child’s needs as well as the child’s wishes. Additionally, the non-custodial parent’s previous contact and history with the child,
Ultimately, it is still the court that will look into the welfare and best interests of the child. This determines the amount of access time they will give. Despite this, though, there are some cases where access to their child is prohibited. Furthermore, this cannot be adequately addressed under the current state of Singaporean law.
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Marital legal issues can easily overwhelm someone, especially when children are involved. It can be difficult to go through so many processes. However, with the right guidance, this can be made simple. Yeo Law, a firm of top specialist divorce and family lawyers in Singapore, can assist. We can help you determine the best child custody arrangements in Singapore. To schedule an appointment, call .
Yeo & Associates managing director Beatrice Yeo, whose law firm represented the man, said the appeal decision that followed in the High Court is significant in being the first such ruling.
It clarified the position of the appropriate method of valuing the flat that was subject to the MOP, she said.
“Both parties had been stuck as to the use of the market price or the purchase price, the surrender value being pegged at a percentage below the purchase price. The court’s answer is the market price,” Ms Yeo said, noting that the Build-to-Order flat in point was valued at some $545,000 early last year.
The surrender value would only be an accurate estimate of the flat’s value if it was actually surrendered to the HDB, which is unlikely to be the case.
For the best interests of your child, call 62203400 and speak to one of our experienced Family Lawyers to discuss your circumstances and find out how we can help.
URL Links to the articles
Source: Straits Times
Article Date: 25 Jan 2021
Author: K.C. Vijayan
https://www.straitstimes.com/singapore/courts-crime/man-wins-right-to-sell-share-of-flat-to-ex-wife-at-market-value
https://www.singaporelawwatch.sg/Headlines/Man-wins-right-to-sell-share-of-flat-to-ex-wife-at-market-value
The Court must be satisfied that there must be a material change in circumstances according to section 128 of the Women’s Charter. For example, you or your ex-spouse may have re-married, you may have better living arrangements since the conclusion of the divorce proceedings or you may have switched employment which allows you greater flexibility in caring for your child(ren).
If you feel that you have a case, you most probably have the merits to vary the original court order to better fit the current condition. Experienced Family lawyers are here to assess the merits of your case to see whether there are sufficient factors to satisfy the legal requirements for you to apply for a variation of the original Court Order.
A variation of a Court Order necessitates a formal application to be made into Court – It is not meant to be used as a backdoor to challenge or get around the original Court Order, unless circumstances have shown that it is not in the best interests of your child(ren) to have care and control remain with your ex-spouse.
Even if the Court is satisfied that there is a material change in circumstances that could necessitate a variation of the original Court Order, the Court’s paramount consideration will be the welfare of the child(ren) – Is it in the best interests of the child(ren) for care and control to remain with your ex-spouse, or have care and control of your child(ren) reversed to you? Rather than having to vary the order on care and control, could your/the child(ren)’s grievances be allayed by revising the access orders?
For the best interests of your child, call 62203400 and speak to one of our experienced Family Lawyers to discuss your circumstances and find out how we can help.
In Singapore, divorces are classified as being either contested or uncontested.
Many divorcing clients request their lawyers to “go for uncontested divorce”. But, is this really a matter of choice?
This article seeks to demystify public misconception on what is meant by “uncontested divorce” by way of explaining the different mechanics behind the process of an uncontested divorce.
Uncontested divorces occur when parties are able to come to an full agreement on one of the reasons for the divorce and how the statement of particulars i.e. the “story” of the incidents that happened during the marriage to form the reason for the divorce:
Often than not, one spouse thinks that the other spouse had depicted one-sided complaint against the other spouse, some simply thinks that the story for the divorce is a complete lie, which acts as a push factor for the other spouse to file his defence and counterclaim.
To attain a truly uncontested divorce as early in the process as possible, most couples require the help of a professional divorce lawyer who can see both side of the pictures and recommend the most suitable way of writing a story to end the marriage, and at the same time, ensure sufficient particulars in the story for the judge in the Family Justice Courts to grant a divorce.
Along with the story for the breakdown of the marriage leading to a divorce, couples who insisted on going for uncontested divorce should also completely agree to all the ancillary terms which include division of assets, exact amount of child maintenance and spousal maintenance, and all other little details. As long as one issue (be it big or small), turns out to be a point for further discussion or a point of dispute, the whole divorce proceedings is classified as Contested Divorce Proceedings.
Contested Divorce Proceedings can also become uncontested along the way after parties decide to agree on the disputed terms halfway. However, this could only be achieved with negotiations, civil discussions, and exchanges of ideas of how to resolve the differences. It would greatly help and save time and tons of legal fees if a Specialist Divorce Lawyer could be engaged to assist the parties in negotiation and fair assessment of the dispute.
When 100% of the divorce and ancillary matters are resolved and agreed upon, your Family Lawyer will draft the terms in a professional and workable manner which would encapsulate all of the principles and nuances of parties’ agreement, along with compatibility with current legislations and laws relating to CPF and HDB etc.
Many law firms advertise for very low fees for the term uncontested divorce (ranging from $800-$1500) which includes only drafting of court documents and filing of documents to the courts without helping parties to come to a settlement or helping them understand what the legal rights are and the implication that they might face in the future with the kind of agreement both laymen attained together. The cheap divorce lawyers for uncontested divorce rely on the parties themselves to come to a full agreement.
In Yeolaw, we have the starting price of S$1200-$2200 for Uncontested Divorce Package to commence the divorce proceedings. What sets Yeolaw Family Lawyers’ Uncontested Divorce Package is that it includes not just drafting of court documents and filing of documents to the courts. The full list of services is as follows: –
Effective negotiation and communication with both parties is essential to get a fair settlement terms as early as possible.
Before your divorce turns contested, please contact Yeolaw Singapore Divorce Lawyers at 62203400 to know your options.
Most divorces in Singapore involve children. From 2008 to 2018, 52-56% of all divorces under the Women’s Charter (Cap 353) involved at least one child below the age of 21.
Divorce is thus a life-changing event not just for spouses, but also for their children. Indeed, even if the divorce is uncontested and relations between both spouses do not seem acrimonious, the exposure of children to inter-parental conflict and separation through divorce can have profound, long-term psychological effects on children.
Children of divorce tend to experience the following:
More worryingly, mental health experts have observed increasing numbers of children in Singapore suffering from depression and other mental health issues, with parental divorce often cropping up as a major factor.
That being said, all children are different. Among other things, the child’s age is a key factor affecting how he/she responds to and makes sense of divorce.
Although babies cannot understand the conflict between their parents, they can perceive tension and changes in their parents’ behaviour, eg if the parents engage in loud quarrels or physical violence. In the long term, the child can exhibit anxiety, neediness and irritability. At the most extreme, he/she may even suffer developmental delay.
Compared with babies, toddlers have a heightened perception of tension and behavioural changes in their parents. The toddler may still be unable to articulate their thoughts or feelings. However, with greater self-awareness at this age, he/she may regress and become more reliant on the custodial parent. He/she may cry more and seek more attention. He/she may even revert to behaviours that he/she has outgrown, eg thumb-sucking and bedwetting. The toddler may resist being left alone and going to sleep at night, and suffer from nightmares.
Nursery/kindergarten-going children will be able understand that their parents are in conflict and are living separately. However, this is difficult for the child to accept. He/she may feel responsible for his/her parents’ divorce, and blame himself/herself for it. Therefore, like a toddler, he/she may exhibit regressive behaviour in order to gain more parental concern and draw both parents back together to care for him/her.
Together with the Ministry of Social and Family Development (“MSF”) and the Divorce Support Specialist Agencies (“DSSAs”), the Courts have implemented various programmes to help divorcing spouses and their children cope with the social and psychological impact of divorce. This is in line with the Courts’ shift towards a child-centric approach in divorce matters.
The following is a summary of the key programmes aimed at supporting divorcing parents and their children through the divorce process:
Mandatory Parenting Programme (“MPP”)- Even before commencing divorce, spouses with children below the age of 21 must undergo the MPP. This is a 2-hour counselling session by DSSA counsellors which seeks to help parents understand and work out post-divorce living arrangements, issues of child custody and access, as well as co-parenting.
Compulsory mediation and counselling under the Family Dispute Resolution (“FDR”) Division of the FJC- Divorcing spouses with at least 1 child below the age of 21 are now required by law to undergo mediation and counselling, as part of the divorce proceedings. As divorcing spouses invariably disagree about future living, caregiving and financial matters, children often experience uncertainty and anxiety. FDR mediation and counselling is thus aimed at keeping spouses focused on the welfare of the child in resolving their disagreements. The steps in the FDR mediation and counselling process are as follows:
Longer-term support. Through FDR mediation and counselling, the CFS can, with the divorcing spouses’ consent, refer them and/or their children to the DSSAs or Family Service Centres (“FSCs”). Programmes provided by the DSSAs are as follows:
For advice on these issues speak to one of the fully qualified family lawyers at Yeo & Associates LLC at 62203400.
A woman feels threatened or harassed by her husband. She even suffered physical violence for many years, with broken ribs or bruises from the punches. She kept silent because she wished to keep the family intact for the children or she simply does not wish to agitate the husband. This is classic victim of family violence.
Under Section 64 of the Women’s Charter, any of the following acts will amount to “Family Violence”:
However, Family Justice Courts sees a rise in applications for personal protection either by a husband or a wife against each other after one heated argument, or after a tussle.
Most likely than not, when a spouse brings the police into a family fight or entered the court room to seek an order against the other, the marriage is doom to go towards the path of divorce.
When divorce proceedings start, one may think that scaring the other spouse into agreement to all the terms relating to monies, houses, and children would be reached if they use PPO’s route.
For example, a mother who wishes to have the custody, care and control of the children may stage a fight and appeared like a victim. She would “escape” from the family home the next day bringing the children along with her. Not long, she would be at the Family Justice Courts’ personal protection unit applying for a PPO order against the father. The Court would issue an expedited order (EO), which is a temporary order to restrain the husband not to use violence against the wife pending the finality of the application. PPO application costs a nominal S$1 to apply.
What is detrimental to the father in the said scenario would be the huge time lapse between the start of the PPO application and the final order granting or rejecting of the PPO application of the mother, ranging from 6-24 months. During this period, the father may be too afraid to access to the children; or that the mother would use the EO and pending PPO order against him to prevent him from approaching her.
At the same time, the mother could apply for Domestic Exclusion Order (DEO) to exclude the father from entering into the family home or that he be retrained to a part of the house.
The mother’s PPO application can be used as a tool to separate a child from his father. When the father approaches the mother, the mother simply calls the police and claimed that she has been harassed. The father risks being sent into police custody.
During this long period of wait for the ultimate judgment from the PPO court, the impressionable child might have got used to a life without his father, or the mother would impressed upon the child that the father “abandoned” them or have committed heinous crimes against them. Thus, even if the father proves his innocence by the end of the trial, harm would have been caused to the child.
Who is the winner in this sage?
– father won Olympic gold victory at the PPO court having proved his innocence;
– mother lost in the trial and have to pay legal costs to the father;
– child lost the love of the father, or even lose respect for both father and mother.
The above is all at the cost of the child’s wellbeing.
The Family Justice Courts, like other adversarial court system has to conduct due process to every case that comes before it. However, to prove falsehoods and false narratives of the supposed family violence victims, it takes human resources, time and money.
If a person is in such danger zone of being falsely accused as a family violence perpetrator, it is prudent, not just wise to consult an expert personal protection family lawyer’s advice as soon as practicable. Whoever strikes first using PPO as a tactic may indeed have certain upper hand, unless you are someone who retaliates and has the resources and funds to retaliate.
If you wish to apply for Personal Protection Order of you have received a Summon from PPO court to appear in court to answer to the charges, please call Yeolaw family lawyers on 62203400 to arrange for an immediate discussion. With years of experience acting for either side of the PPO and DEO application, we will be apt to advice you to protect your legal rights.
It is not as simple as “sale of flat” or “transfer flat from husband to wife”. Period.
To have a workable and useful Court Order, you need an experienced family lawyers well-versed in current HDB housing laws, banking rules and rules relating to conveyancing and CPF.
A poorly drafted court order with small but pertinent details missing renders the whole court order useless. It also brings about many problems for HDB officers, CPF Board officers and bankers who assess your mortgage loan.
You will have to spend legal fees again to vary the court order to make it right. This will lead to wasting valuable time and monies and frustration for parties.
Almost every family owns at least one HDB flat in Singapore. When divorce happens, parties will have to split the HDB flat, be it by way of sale or by way of spousal transfer.
Parties will have to consider a list of issues regarding the disposal of the matrimonial home:-
HDB rules state that for the welfare of a young child in a divorce family, one parent who has the child’s care and control (not just custody) will be able to retain the flat even if all the eligibility is not satisfied. It means that as long as one parent is able to afford to take over the full outstanding mortgage loan of the flat, even if he/she has not reached the age of thirty-five (35) or that the flat has not been occupied for a minimum five (5) years, that parent is eligible to take over the flat.
If parties agree in the divorce settlement that the outgoing spouse shall take only partial or no refunds of the CPF monies used to purchase the flat, the outgoing spouse will not be entitled to receive any further refund to his/her CPF Account even if the ex-spouse subsequently disposes of the flat. However, the ex-spouse would be required to refund his/her and the outgoing party’s portion of the CPF monies withdrawn including interest to the ex-spouse’s CPF Account.
You may seek legal advice from your family lawyer at 62203400 whether you may receive a portion of the sale proceeds in the event that the spouse who retained the flat at the time of divorce sells the flat in the future.
It is not automatic that the ex-spouse gets to keep the HDB flat just because the Order of Court dictates so. If any of the conditions cannot be fulfilled, the transfer cannot take place. For instance, if the person who wishes to retain the flat cannot even get HDB loan or private bank loans, then the reality says that this person cannot buy over the flat. The most common oversight is that the party who wishes to retain the flat is unable to take over the outstanding housing loan and/or pay cash consideration to the outgoing party. Lawyer should advise the party on the financial obligations towards the flat upon the transfer to ensure that the terms in the Order of Court is realistic and also cater to unforeseen circumstances where parties can rely on alternative clauses if they were already in the Order of Court in the first place.
Thus, it is important that you seek legal advice on how you could plan to retain the flat as early in the divorce proceedings as possible.
If the Order of Court does not provide an alternative in the event that transfer of flat ownership cannot take place for whatsoever reasons, parties will have to go back to their divorce lawyer to apply for a summons for variation of order to include an order to either transfer the property to the other eligible party or to dispose of the flat. For example, if parties have completed the 5-year MOP, then they may sell the HDB flat on the open market. However, if the MOP has not been met, parties have to return the HDB flat at the prevailing compensation price, subject to HDB’s approval.
Upon the sale of the flat in the open market, the sale proceeds will be first used to pay off any outstanding housing loan followed by refund of parties’ CPF monies withdrawn together with accrued interest to their CPF Account(s). However, if the selling price (at market value) is insufficient for parties to make the CPF refund, parties need not meet the shortfall with cash. The remaining balance, if any, will be divided between parties in a manner pursuant to the Order of Court. The percentage that each party is entitled to is not by default 50%/50%. This is a misconception. The percentage is either obtained by parties’ agreement or the judge determined the percentage based on parties’ respective direct and indirect contribution to the family and flat.
An issue arises when the Order of Court purports to divide the sale proceeds between parties before refund is made to their CPF Account(s) which is in contrary to CPF Board’s regulations. If a party’s share of the sale proceeds is insufficient to refund to his/her CPF Account, he/she will have to top up the shortfall with cash failing which the CPF charge on the flat cannot be discharged and the sale transaction cannot be completed. To overcome this, parties can opt to refund the CPF monies first before dividing the sale proceeds and/or go back to their divorce lawyer to apply for a summons for variation of order to ensure that parties get their fair share of the proceeds, for example including a clause to have CPF Board transfer CPF monies to the other party after the sale has been completed.
Divorce lawyers should be conscious that the terms in the Order of Court might give rise to unintended consequences if insufficient attention is paid while drafting them and should take the time to examine the terms to see if it raises any of the issues identified in this article which might just save a whole lot of costs and inconvenience moving forward.
To minimize your costs, time and distress, it is essential to consult a professional divorce lawyers well-versed in drafting financial settlement terms. Call 62203400 or fill up the Advice Request form for assistance.