- An HDB flat bought during the marriage is a matrimonial asset.
- Before the Minimum Occupation Period ends, you generally cannot sell on the open market.
- The spouse keeping the flat must meet HDB's eligibility rules and be able to pay the loan.
- CPF used for the flat usually has to be refunded to CPF accounts, with accrued interest.
The flat is part of the pool
A flat bought during the marriage is a matrimonial asset, and so is a flat bought before marriage that became the family home. Its value, less the outstanding loan, forms part of the pool divided between you. The harder question is usually what happens to the flat itself.
Your options for the flat
Broadly, there are three outcomes. Which ones are open to you depends on whether the Minimum Occupation Period (MOP) has been met and on HDB's eligibility rules.
- Sell on the open market and divide the proceeds. This is generally only possible once the MOP has been met.
- Transfer the flat to one spouse, who keeps it. The transferee must meet HDB's eligibility conditions, for example a scheme for a parent with care and control of the children, or the Single Singapore Citizen scheme for a citizen aged 35 or above. They must also be able to take over the loan.
- Return the flat to HDB. Where the MOP is not met and neither spouse can keep it, HDB may buy it back, usually at a price that is lower than market value.
HDB has to approve the outcome, and its policies change from time to time. It is worth checking your specific position with HDB, or through your lawyer, before you agree a settlement that depends on one of these options.
How CPF is treated
CPF balances built up during the marriage are matrimonial assets. The court can order CPF monies to be transferred from one spouse's account to the other's, which stay in CPF rather than being paid out in cash.
Where CPF was used to buy the flat, the amount used plus the accrued interest is usually refunded to the CPF account of the person who paid it when the flat is sold or transferred. This can mean the cash actually left after a sale is much smaller than expected, so it is important to work out the CPF refunds before agreeing any split.
Planning your next home
Divorce affects your ability to buy another flat. Debarment periods, income ceilings, and eligibility for grants can all apply, and keeping the matrimonial flat may be your best or only chance to stay in the HDB market for a while. These practical points should shape the settlement, not be discovered after it.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
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