Are The Monies In CPF Accounts Considered Matrimonial Assets In Singapore?

Introduction

In Singapore, the Central Provident Fund (CPF) is a compulsory comprehensive savings plan for working Singaporeans and Singapore permanent residents that primarily serves to meet their retirement, housing and healthcare needs.

CPF monies are accumulated through being gainfully employed, and funded by both employers and employees.

In the event of a divorce, CPF monies may be considered as matrimonial assets. Even though your ex-spouse is not automatically entitled to your CPF monies just because you were married, the court may order a share of your CPF monies to be given to him/her, or order a a share of his/her CPF monies to be given to you, depending on the situation at hand.

Unfortunately, it is a common misconception that CPF monies are untouchable in a divorce. Under section 27B(1)(a) of the Central Provident Fund Act, the Board will, under orders from the court, transfer or pay an amount to the spouse that has been awarded, out of the credit of the member of the Fund.

Important things to take note of are:

• CPF monies accumulated before the marriage are not considered matrimonial assets, unless they fall within section 112(10)(a) of the Women’s Charter.
• CPF monies accumulated during the marriage may be considered matrimonial assets, and thus may be divided.

Why Are CPF Funds Considered Matrimonial Assets?

Under section 112(10)(b) of the Women’s Charter, a matrimonial asset is any other asset of any nature acquired during the marriage by one party or both parties to the marriage. 

Therefore, during the division of the matrimonial assets, the court has the power to decide whether you or your spouse can be entitled to receive CPF monies from the other.

In the event where the parties both work and earn similar levels of income, they are most likely to agree to keep their own CPF funds, so that further orders do not have to be made by the court on the division of their CPF funds.

However, in situations where one of the parties was looking after the children full-time while the other party works, there will be a bigger disparity between the CPF monies in their accounts. In these situations, the court may order for the division of the CPF funds accumulated by the working party.

What Are The Ways CPF Monies Can Be Divided During The Divorce?

Transfer Of CPF funds Used For HDB / Private Property

If the parties have used their CPF funds to finance their HDB flat or private property, the parties will have to apportion the monies back into their CPF accounts, either subsequent to the division of the funds or prior to the division, upon the sale or transfer of the property.

Transfer Of CPF Funds To Spousal Account

The drafting of the clause with respect to the transfer of CPF funds must be accurate and in accordance to the CPF Board rules.

Part IIIA of the CPF Act is applicable to orders of court made pursuant to section 112 of the Women’s Charter, allowing the following orders to be made:-

(a)Transfer of member’s CPF monies from his ordinary, special and/or medisave accounts to his spouse’s corresponding CPF accounts provided the spouse is a Singapore citizen or PR

(b) Charging order against a member’s CPF account usually the ordinary and/or special account and subject to the minimum sum if the member is a Singapore citizen or PR

(c) Charging order against a member’s CPF account (ordinary, special and/or medisave account if spouse is a foreigner and is not subject to the minimum sum)

(d) Partial or no refunds to be made to the outgoing member’s CPF account when he transfers his share to the spouse, provided the spouse is a Singapore citizen or PR. However, when the property is sold in the future, the amount which is not refunded to the member’s account at the time of the transfer must be refunded to the spouse’s account.

Transfer Of CPF Investments To Spousal Account

If a party to the divorce has a CPF Investment Account, it is also possible for a court order to indicate a transfer of ownership of CPF Investment Scheme investments from the member to the spouse.

This can involve the sale of member’s investment and to transfer or charge the proceeds (after refund to the member’s account) to the spouse.

For the CPF Board to act on the order of court relating to the transfer or charging orders, sale/transfer of investments, the Order of Court must be served on the CPF Board. 

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