You’ve said “I Do” and are looking forward to spending the rest of your lives together. You certainly wouldn’t have planned for it but how would a divorce affect your plans?

 

Certainly, divorce is not on your mind when you’re vowing to love each other in sickness and in health. But if even celebrities like Angelina Jolie-Brad Pitt, Miley Cyrus-Liam Hemworth and Jason Momoa-Lisa Bonet could split after being married for years, divorce can really happen to anyone.

 

When this happens, the split of assets is rarely 50-50 in proportion. There have been ugly court battles over the division of matrimonial assets. These are items that have been acquired during the marriage and include property, family car, jewellery, savings and even cash in the couple’s CPF account. 

 

Although the Women’s Charter in Singapore protects the rights of females in Singapore, it doesn’t take away the fact that married females should start making financial plans and attend to personal money matters even when they’re still single. Even after getting married, you should continue to review your financial plans regularly, just in case of any emergencies.

 

The two biggest money issues in a divorce

 

The two biggest financial areas that women should plan for in the case of a divorce are the division of assets, and spousal and child maintenance.

 

#1 Property

 

Regardless whether it’s a flat, a condo unit or landed property, the place you live in can be the biggest point of contention.

 

According to Singapore law, the two main factors that would be taken into consideration would be the direct and indirect contributions of each party. Direct contributions include money matters such as down payments, monthly loan payments and property. Indirect contributions include financial aspects that don’t add value to the assets, such as contributions to household expenses, household appliances and caring for children.

 

There are many ways that this can be resolved. The biggest cash outlay happens when one party is ordered to pay cash to the other party to buy over their share of the home. This can go both ways, which means that there is also a likelihood that the female has to pay her ex-husband.

 

#2 Spousal and child maintenance fees

 

In the case of divorce in Singapore, mothers are given guardianship of children, barring some exceptions. However, there isn’t a set formula for determining how much spousal or child maintenance should be paid. So a divorced mother may find herself lacking sufficient funds to support the child(ren).

 

There may be cases where despite the court ruling, the father is unable to pay the maintenance. Then the financial responsibility of the child(ren) falls completely on the mother.

 

While there are other financial areas that will be contested during a divorce, these two are of the biggest concern. This is especially so for females who decide to be fully financially dependent on their husband, as they don’t have any source of income during the time of the marriage. Women who continue to work after getting married at least have a monthly income.

 

Regardless of whether you intend to continue working or choose to rely on your husband after marriage, it is prudent to make financial arrangements for yourself and also for both of you as a couple. 

 

Seek the advice of a neutral party 

 

Having a neutral party can help a couple look beyond who is right and any prejudices or personal frustrations and focus on the goals, desires or concerns of the couple. There may be legal considerations and things that may need a professional eye to look over and it never hurts to get advice.

 

Reach out to us and find out how we can help you make better, informed decisions and make your journey a happy one!