Division of Matrimonial Assets.

The first question that comes to the mind of an individual who decided to opt for divorce is that what would then happen to the properties that he or she owned; either in their own name or in joint names together with their spouses. The forefront of these concerns also centres upon the particular house in which the couple had resided in throughout the period of their marriage.

S.76 of the Law Reform (Marriage and Divorce) Act 1976 (“LRA”) empowers the court to make a division of the matrimonial assets in a divorce proceeding.

What is a matrimonial asset?

A matrimonial asset is any property, be it movable (for example like shares, bank accounts, investments) or immovable (properties bought for investment or living purposes) which is acquired by either the husband or the wife in their respective names or joint names during the course of the marriage.

EPF funds of the individuals are also considered as matrimonial asset.

S. 76 (5) of the LRA also stipulates that any property acquired by either the husband or the wife prior to their marriage can also be considered as a matrimonial asset as long as the party who wish to claim it can prove to the court that they have contributed to substantially improve the said asset during the marriage either by their own effort or through joint effort as a married couple.

How does the court make the division of matrimonial assets?

S.76 (2) (a) to (d) of the LRA provides the court the factors to be considered when making an order to divide the matrimonial assets, summarised as follows: -

• the extent of the contributions made by each party in money, property or work towards acquiring of the assets or payments of the expenses for the benefit of the family.

• the extent of the contributions made by the other party who did not acquire the assets to the welfare of the family by looking after the home or caring for the family.

• any debts owing by either party which were contracted for their joint benefit.

• the duration of the marriage

• the needs of the minor children, if any, of the marriage.

Upon taking into account of the factors listed above, the court will then proceed to make the equal division of the matrimonial assets. It is imperative to understand that the division may not necessarily be in equal proportions but may vary from case-to-case basis.