What Will Happen To Your HDB Flat After Divorce
Divorce can be a complicated process, especially when it comes to deciding on custody and division of assets. Your property, likely the most significant asset, raises many questions: Who gets to keep it after the divorce? If you sell it, who gets the proceeds? Do you need to surrender it to HDB? Understanding how the division works, particularly regarding custody arrangements and eligibility criteria, is crucial. Here is what you need to know about HDB flat ownership after divorce.
How do you know if your HDB flat is a Matrimonial Asset?
The ideal scenario is for you and your spouse to agree on what happens to the flat after the divorce. This might mean one party transfers their share to the other, or the flat is sold on the open market, with the proceeds then divided according to your agreed terms.
The Court will step in to decide if both of you are unable to reach an agreement. This usually entails determining whether the flat is a “matrimonial asset” and including it in the pool of assets for division. Under the Women’s Charter, “matrimonial assets” are generally properties acquired during the marriage. Property bought before the marriage is usually not considered, unless it was used by the family or significantly improved by one or both parties. Flats received as gifts or inheritance are also not typically considered as such unless they have been designated as the “matrimonial home” or significantly improved.
If the flat is classified as a “matrimonial asset”, the Court will decide its fate. The Court may order your spouse to transfer their share to you or mandate the sale of the flat, with the proceeds divided between both parties. The exact division will depend on various factors outlined in Section 112(2) of the Women’s Charter.
Even if you are entitled to keep the flat after your divorce, it is not entirely guaranteed. You will still need to meet HDB’s eligibility requirements and fall under one of these scenarios:
a. You have care, control, and custody of your children
You might be able to keep your HDB flat if you have care, control, and custody of your child(ren), provided you can continue paying off any remaining loan. This arrangement helps maintain stability for your child(ren), ensuring their living conditions stay consistent despite the divorce.
b. You qualify under the Single Singapore Citizen Scheme
Even if you do not have child(ren), you might still be able to keep the flat under the Single Singapore Citizen Scheme. You could qualify to retain the flat if you are a Singapore citizen aged 35 or above and meet HDB’s eligibility criteria.
Divorce Before HDB MInimum Occupation Period (MOP)
If you cannot meet the conditions listed above, you will need to sell the flat after your divorce. If the Minimum Occupation Period (“MOP”) has not been met by the time of the divorce, you might have to return the flat to HDB at the current compensation price.
HDB Sale and Proceeds
For situations where neither you nor your spouse can keep the flat and the MOP has passed, you can sell the property on the open market. The proceeds will then be divided according to the Court’s decision or a mutual agreement between the parties.
Going through a divorce is not easy and can take a toll on you mentally, emotionally, and financially. Consulting a family lawyer in Singapore can make a significant difference in navigating the complexities of HDB flat ownership after a divorce. At Family Law Specialist, we provide personalised legal advice and strategic support throughout the entire process. Our experienced lawyers are here to protect your rights, guide you through legal procedures, and help you achieve a fair and amicable settlement.
Schedule a free consultation with us today to discuss how we can help you secure the best possible outcome.
Frequently Asked Questions: HDB Flat Ownership After Divorce
What happens to our HDB flat after a divorce?
After a divorce, the future of your HDB flat depends on several factors, including the type of divorce (mutual agreement or contested) and the ownership arrangement (joint tenancy or tenancy-in-common). The court will also consider factors such as each spouse’s financial contribution, custody arrangements (if there are children), and other relevant circumstances to decide whether the flat should be retained, sold, or transferred to one party.
Can I keep the HDB flat if I have custody of the children?
Yes, if you have custody, care, or control of the children, you may have a stronger case for retaining the HDB flat. In such cases, the court often aims to provide stability for the children. However, this decision also depends on whether you meet the eligibility criteria, such as being able to finance the flat independently and meeting HDB’s eligibility rules.
Can we sell our HDB flat immediately after the divorce?
Typically, you can sell your HDB flat after the divorce if both parties agree to it and it meets the Minimum Occupation Period (MOP) requirements set by HDB. If your flat does not meet the MOP, options might include one spouse retaining the flat or HDB granting an exemption in unique cases. Consulting with a family lawyer , like those at Family Law Specialist, can help clarify your options and expedite the process.
Am I entitled to any part of the HDB flat if my name is not on the ownership papers?
Even if your name is not listed as an owner, you may still have a claim on the flat if you have contributed financially to its purchase or upkeep. In a divorce, the court will consider each spouse’s contributions to the marriage, both financially and non-financially, before deciding how to divide the flat.
What are my financing options if I want to retain the HDB flat after divorce?
If you wish to retain the HDB flat, you may be required to take over any outstanding loan on your own. Depending on your financial circumstances, you may be eligible for bank loans, CPF savings, or HDB financing. Seeking advice from a divorce lawyer can help you understand these options and create a clear financial plan to ensure you meet all requirements to retain the flat.
