Managing Your Finances After Divorce
Read on for some financial arrangements that you may wish to consider.
Managing Your Finances After Divorce
It is recommended for you to read the following content with a clear mind. If you are feeling emotional at this point in time, you may wish to come back to this page later when you are in a calmer state of mind.
Other than the division of assets such as your house and car that may have been discussed between you and your spouse, both of you may also have joint bank accounts and/or shared payments over the course of your marriage. You may wish to note the following as well:
- If you have any joint bank account(s) with your spouse, you may wish to discuss if you would like to close these account(s) with your spouse or repurpose them e.g. for your child’s expenses.
- Similarly, if you have provided your spouse with supplementary credit card(s) or vice versa, you may wish to discuss the arrangements for the credit card(s) with your spouse.
- GIRO arrangements may have been made to pay for shared household expenses either through your personal bank account or joint bank account(s). You may wish to review the GIRO arrangements where necessary.
- If you have a child who has remaining BBCG, you may wish to know that the BBCG recipient has to be the party who has care and control of the child. Such care and control could be decided via a court order or mutual agreement between the parents.
- If you have a child below 13 years old and he/she has a CDA, you may also wish to note that the CDA trustee has to be the party who has care and control of the child. Such care and control could be decided via a court order or mutual agreement between the parents. The CDA trustee is responsible for managing the CDA funds for the child’s educational and healthcare expenses at Approved Institutions (AIs).
- As there can only be one recipient for the BBCG and one trustee to manage the CDA, you should discuss and agree with your spouse on the respective arrangements to ensure that your child can continue to benefit from the Baby Bonus Scheme. For the avoidance of doubt, you may wish to provide for the identity of your child’s BBCG recipient and CDA trustee in the court order on ancillary matters. You may visit the Baby Bonus Website for more information.
- As divorce does not automatically revoke your earlier nomination, you may wish to review and make a new nomination. For more information, click here or contact CPF Service Centre.
Monies invested under CPF investment schemes
- If you and your spouse have invested your CPF monies in investment products (such as unit trusts, investment-linked insurance products, shares, bonds, etc.), you may want to discuss how to split the shares of these investments.
Monies in CPF accounts
- For purpose of the division of matrimonial assets, the Courts may order a transfer of CPF monies from one’s CPF account to his/her spouse’s CPF account or order one’s CPF monies be paid to his/her spouse in cash upon meeting certain withdrawal conditions. As such, there is a need to consider how your participation in CPF schemes may be impacted if a portion of your CPF monies is to be distributed to your spouse.
- If you and your spouse have any joint insurance policies, or if you are paying for any of your spouse’s insurance policies, you may wish to review these arrangements. You may also wish to consider updating the nominated beneficiaries in your insurance policies.
- Additionally, if you and/or your children were included in your spouse’s employer’s group insurance scheme, you may wish to look into your own coverage as these might not be available to you once you are divorced. If you would like to have health insurance coverage beyond MediShield Life, do look at the options available for yourself and your children as soon as possible.
- The LPA is a legal instrument which allows a person who is at least 21 years of age (‘donor’), to voluntarily appoint one or more persons (‘donee(s)’) to make decisions and act on his/her behalf should he/she one day lose mental capacity. A donee can be appointed to act in two broad areas of personal welfare and property & affairs.
- If you have made an LPA and appointed your spouse as a donee, you should review this arrangement and appoint a new donee if necessary. If you have not applied for an LPA and wish to find out more, you can click here.
- If you have previously made a will distributing all or part of your assets to your spouse, you may wish to review it. Take note that divorce does not automatically revoke your will, and if not revised, such will would continue to be effective. If necessary, look to make a new will to supersede the existing will.
These are some possible financial arrangements and aspects that you may wish to consider and are not exhaustive. If you have other financial arrangements with your spouse, you may also wish to review them.
The information on this site is for general information only and is not intended to be, and should not be relied on as a substitute for professional legal advice.