Division of CPF Assets (Monies, House, Investments) After a Divorce

Last updated on August 22, 2024

How can CPF-related assets such as CPF monies, the matrimonial home paid using CPF monies and CPF investments be divided in a divorce? Here are the key proceedings and information you need to be acquainted with.

Will CPF-Related Assets be Divided in a Divorce?

The court has the power to divide matrimonial assets between the divorcing parties in proportions which it thinks are just and equitable.

According to the Women’s Charter, matrimonial assets include any asset:

Acquired during the marriage; or
Acquired before the marriage and
- Used by the couple or their children during the marriage; or
- Which had been substantially improved during the marriage.

Gifts or inheritances that were substantially improved during the marriage are not considered matrimonial assets unless they are the matrimonial home.

Following this definition, the portion of CPF monies (and other related assets, such as CPF investments) that were accumulated during the marriage or paid towards the acquisition of the matrimonial home, which is in itself usually regarded as a matrimonial asset, can be considered matrimonial assets to be divided by the court in a divorce.

How Is The Division of CPF Monies Carried Out?

The court holds the power to order a division of the parties’ CPF monies if the parties are unable to agree on how their matrimonial assets should be divided, and let the court decide on this matter on their behalf.

To ensure a fair distribution between you and your ex-spouse, factors such as the extent of financial and non-financial contributions to the marriage and the needs of each party after divorce will be considered.

Financial contributions include money spent to acquire matrimonial assets, while non-financial contributions include looking after the home.

If your ex-spouse is a Singapore Citizen or Singapore Permanent Resident and has been granted a portion of your CPF monies, the division can be done in 2 ways:

If your ex-spouse is a foreigner, the court may only make a charging order.

1. Transfer order

Under a transfer order, the court can order an immediate transfer of your CPF savings to your ex-spouse’s CPF account, with the amount subject to the court’s discretion. This transfer of CPF monies can take place without you setting aside your retirement sum first.

Once the transfer is made, your ex-spouse can use these monies for approved CPF schemes such as housing, investment and education. He/she may also withdraw the monies when he/she turns 55.

To commence the transfer of CPF monies, you will need to submit the court order for the division of matrimonial assets to the CPF Board (CPFB) via this Form.

2. Charging order

Under a charging order, your ex-spouse will be granted his/her share of your CPF monies in cash only when you become eligible to withdraw your CPF savings. Payment to your ex-spouse is subject to you setting aside your retirement sum first.

For the ex-spouse to receive payment, the court order for the division of matrimonial assets first needs to be submitted to CPFB. Either party can do so via this Form.

If the court order is accepted, CPFB will notify your ex-spouse of his/her entitlement to a share of your CPF savings when you become eligible to withdraw it. Your ex-spouse will also be provided with an application form for applying to withdraw his/her share of your CPF savings.

Once CPFB has received your ex-spouse’s application and supporting documents, the application will be processed. The monies will be paid to him/her through GIRO within 10 working days or via cheque within 15 working days.

What About the Division of CPF Monies That Were Used to Buy the Matrimonial Home?

The court can order you to transfer your share of the matrimonial home to your ex-spouse, with partial or no refunds made to your CPF account for your contributions to the property’s purchase price.

If you have been granted a partial refund of the CPF monies that you’ve used to purchase the property, your ex-spouse will transfer the refund amount to your CPF account(s) together with accrued interest.

Alternatively, if the court has decided not to award you any refund of the CPF monies you’ve used to purchase the property, then you will not be entitled to receive any refund. This is even if your ex-spouse later decides to sell the property.

Is It Possible to Divide Our CPF Investment Scheme Monies?

The CPF Investment Scheme (CPFIS) is applicable to parties who have invested their CPF monies in various places such as insurance products, bonds and shares to enhance their retirement savings. The court can order the division of the CPFIS in two ways:

An ownership transfer of investment from you to your ex-spouse; or
The sale of your investments. The proceeds will be refunded to your CPF Investment Schemes’ accounts before they are refunded to the Ordinary and, or Special Accounts. The CPFB may then transfer to your ex-spouse’s CPF accounts or pay them.

Note that where the court orders you to transfer or sell/liquidate your CPF investments, you would need to first approach your agent bank and sell/liquidate your investments, then instruct CPFB to transfer the sales proceeds via this Form.

Other CPF-Related Divorce Matters

Division of HDB flat

If your matrimonial home is an HDB flat, you would need to file an Agreed Matrimonial Property Plan (AMPP), which will formally set out the agreement between you and your spouse as to how your HDB flat is to be divided.

Before the AMPP is filed in court, both spouses must obtain from CPFB their own CPF statements stating how much money they have withdrawn from their CPF accounts (including any accrued interest), whether to buy their HDB flat or for other purposes.

The plaintiff (the party filing for divorce) must also serve the AMPP on HDB. HDB will then give a written reply as to whether it agrees to the plan within 1 month of service. The AMPP can then be filed in court.

If HDB does not reply within 1 month of service, the plaintiff must file the AMPP within 7 days of receiving the reply.

However, if the parties cannot agree on how the HDB flat is to be divided, both spouses will each have to draw up a Proposed Matrimonial Property Plan (PMPP) to detail their proposal on how the HDB flat should be divided in the divorce. The PMPPs must also be filed in court. However, only the plaintiff will have to obtain his/her CPF statement before filing his/her PMPP.

Updating your CPF nomination

Please note that CPF nominations are not revoked after a divorce. Therefore, if you had previously nominated your ex-spouse to receive your CPF monies after your death and you no longer wish for this to be the case, you may want to change your CPF nomination after the divorce.

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Should you require legal assistance with your divorce proceedings, please do not hesitate to get in touch with any one of our divorce lawyers.