In the event your marriage ends in divorce, one of the critical issues is the division of your matrimonial assets, which are those acquired during the marriage. While your CPF funds are your individual savings contributed by you and your employer, they are considered a matrimonial asset in divorce.
While your spouse is not automatically entitled to any part of your CPF savings, it is up to the court to decide on their allocation in divorce. Below, we discuss in more detail what happens to CPF in a divorce in Singapore, CPF refund after selling the matrimonial home, and CPF transfers.
Key Takeways
- Your CPF funds are part of the matrimonial assets.
- The court decides the division of CPF funds based on the principle of what is just and equitable, which is not always 50/50.
- If you sell your matrimonial home, including an HDB flat, you need to make the CPF refund after divorce for the full amount you paid for the property, including the accrued interest.
- If the court decides to divide your CPF funds, either spouse can initiate the transfer by uploading the court order to the government portal.
What Are Matrimonial Assets?
In Singapore, matrimonial assets include property and other assets, acquired while the couple were married and which are split in divorce. At the same time, matrimonial assets can also include those belonging to each of the spouses before marriage if these assets have been significantly improved.
In turn, inheritance and gifts to one of the spouses are not included in matrimonial assets, with the exception of the matrimonial home. If one of the spouses owned or inherited a property which was used for the family to live in, such property can be included in the matrimonial asset pool.
When CPF Is Considered in Asset Division?
Accordingly, the portion of CPF funds accumulated during marriage is considered matrimonial property as well. The same is true for the portion of CPF money which was paid towards a matrimonial home, including an HDB flat.
During divorce, the spouses can agree among themselves how to divide their matrimonial assets. If the spouses cannot agree, the court will divide the matrimonial assets, including the CPF funds and CPF investments, in proportion that is not always 50/50 but is “just and equitable” in the opinion of the court.
CPF Refund After Selling or Transferring the Property
If you sell your matrimonial property, including an HDB flat, after divorce, you need to refund the CPF money you paid for this property, as well as the accrued interest on this amount. You can only have your sale transaction cleared after you repay the CPF funds you used to pay for the property.
If you transfer your share of the matrimonial home to your ex-spouse, the court may order a partial or no refund of your contributions toward purchasing the property. If you are granted a partial or full refund, your spouse will have to transfer the corresponding amount, together with the interest, to your CPF account, whether or not the spouse sells the property or keeps it after divorce.
CPF Division in Divorce in Singapore
If the court decides to divide your CPF funds as part of the matrimonial assets, it can do so either by issuing a transfer order or a charging order. Notably, if your spouse is a foreigner, the CPF division in a divorce in Singapore can only be done by a charging order.
Transfer Order
By issuing a transfer order, the court can order an immediate transfer of the court-determined amount of your CPF funds to your spouse’s CPF account. Importantly, the transfer of CPF funds under the transfer order can be done without setting aside your retirement amount.
Either the plaintiff or the defendant spouse can initiate the transfer of CPF funds by uploading the court order to a government website. After the transfer is complete, the recipient spouse can use the funds for CPF-approved purposes.
Charging Order
If the court issues a charging order, your spouse will be able to obtain your share of the CPF funds only when you are eligible to withdraw them, for example, when you reach the age of 55. In case of a charging order, your retirement sum will be intact and not affected by the transfer.
Similarly to the transfer order, either spouse can initiate the transfer of CPF funds under the charging order by uploading the court documents to the government website.
CPF Nomination and Divorce
A CPF nomination allows you to distribute your funds to someone in case of your death. You can nominate anyone as the recipient of your CPF funds, including your spouse.
Importantly, the divorce does not automatically revoke the CPF nomination in favour of your ex-spouse, unless you specifically wish to change the nominee. Accordingly, you need to change your CPF nomination after divorce if you no longer want your ex-spouse to be the recipient.
How IRB Law Can Help
Your CPF funds are a cornerstone of your retirement planning and have the maximum protection, including insulation from creditors in case of your bankruptcy. However, your CPF funds are not immune to divorce and can be split between you and your ex-spouse.
If you are going through a challenging period of divorce, you need experienced divorce lawyers in Singapore by your side to assist you in handling the division of the matrimonial assets, including your CPF funds. At IRB Law, we can help you analyse your options for CPF division in divorce, negotiate with your spouse, and represent your interests in court.
Summary
Your CPF funds accrued during marriage are considered part of your matrimonial assets in Singapore. While your spouse is not automatically entitled to any portion of it, the court may decide to split your CPF funds in divorce based on the principle of what is just and equitable.
After the court issues a transfer order or charging order, you or your spouse can initiate the transfer by uploading the court order along with accompanying documents to the government portal. If you are interested in more information about what happens to your HDB or CPF in a divorce in Singapore, please don’t hesitate to contact our family law team for a free initial consultation.
FAQs
Is CPF a matrimonial asset?
Yes, in Singapore, the CPF funds, including both the principal and interest accrued during your marriage, are considered as matrimonial assets.
What happens to CPF in divorce in Singapore?
In divorce, the court can decide to transfer a portion of your CPF funds to your ex-spouse in a proportion based on the principle of what is just and equitable.
How CPF funds are treated when selling your matrimonial home?
If you sell or transfer your matrimonial home, the CPF funds which were paid towards the price of the property and the interest on these amounts need to be returned to the CPF. After the proceeds from the sale are returned to CPF, the funds can be transferred to the entitled spouse based on the court order.
