Q I AM a permanent resident filing for a divorce from my wife. We are both Malaysians.
We bought an HDB flat in Jurong six years ago. I had paid $4,000 cash as down payment and have been servicing the loan with my CPF savings. The outstanding loan is $70,000.
Do I have to sell the flat after our divorce?
If yes, I understand all the CPF money used for servicing the mortgage has to be returned to my account. Do I need to split the money with my wife?
Is there a fixed period after which I can buy another flat with a new partner?
My monthly basic pay is $1,300. How much would I be expected to pay in maintenance? We have a five-year-old daughter.
Would it be based on my gross salary, including overtime, or just the basic income?
Besides the flat, we have some savings which were kept under separate names - 70 per cent under hers. Would I still need to pay her maintenance using my 30 per cent holding?
A After the Family Court grants a divorce, it decides on marital issues such as maintenance for the former wife and children, division of the matrimonial home and other assets. These are referred to as ancillary matters.
The HDB flat you both own is a matrimonial home. You can either sell it, transfer your share in it to your wife or vice versa.
If you transfer your interest in the home to your wife, the CPF Board requires your wife to reimburse into your CPF account all your CPF monies (including interest) that was used for the purchase of the home and for the servicing of the loan.
There is unlikely to be a substantial profit from the sale of matrimonial homes by divorced couples in the current economic climate.
Once the matrimonial home is sold, any loan outstanding and all levies due to the HDB must be first settled. The balance is then used to reimburse both of your CPF accounts.
Sometimes, there may be insufficient sale proceeds to carry out the reimbursement into your respective CPF accounts.
It is likely that your wife will want you to share with her the net profits from the sale.
You can agree with her on how the proceeds are to be distributed.
In some cases, the former wife may wish to receive the full net sale proceeds towards her claims for maintenance and division of matrimonial assets. Or both spouses can agree on the distribution of the profits.
If your wife agrees to transfer her share in the matrimonial home to you, HDB regulations require you to form a family nucleus in order to own the property.
This could mean that you and your new partner can become co-owners of the flat.
If the flat is sold, you need to consult with the HDB on the purchase of a second flat for you to live in.
On the issue of maintenance for your daughter, both your wife and you have a duty to maintain her.
The court will take into account these factors when assessing the amount of maintenance:
Your income (your basic salary, commission and overtime pay) and your earning capacity; Your other financial resources; Both your financial needs, obligations and responsibilities; The standard of living enjoyed by all three of you before the marriage broke down; The length of the marriage and both your ages; Any form of physical or mental disability both of you may suffer from; and Contributions made by both of you to the welfare of the family, including looking after the family or caring for the family. You have a duty to maintain your former wife. The Court will consider the above factors, including her income and financial resources when deciding on the amount of maintenance you must pay.
You can pay monthly maintenance or a lump sum. It seems that both of you have divided some monies between yourselves. The money you hold is yours. But your wife may wish to treat it as a matrimonial asset and request that it be dealt with by the court.
If this happens, both of you may want to share your money in any proportion or you can let her keep all of your money as a lump sum maintenance.
I'd advise you both to reach an amicable settlement on the ancillary matters with the assistance of your lawyers, or use the Family Court's mediation scheme, which is available to all divorce litigants.
Rajan Chettiar
Rajan Chettiar & Co
Advocates & Solicitors
Advice provided in this column is not meant as a substitute for comprehensive professional advice.
E-mail questions to chanteik@sph.com.sg
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