Divorce brings many complex emotional and legal challenges, and one of the most common concerns among clients at PKWA Law is: “What happens to our HDB flat after the divorce?” Given that the HDB flat is often a couple’s most significant asset, understanding how it is dealt with during divorce proceedings is crucial.
1. Matrimonial Asset Under the Women’s Charter
Under Singapore’s Women’s Charter, a Housing and Development Board (HDB) flat acquired during the marriage – or before marriage but used as the couple’s matrimonial home – is generally considered a matrimonial asset. This means that the flat is subject to division during divorce, regardless of whose name is on the title.
The Court has the discretion to divide matrimonial assets in a “just and equitable” manner, taking into account factors such as:
- Financial and non-financial contributions of each party
- Needs of the children (if any)
- Length of the marriage
- Any agreements between the parties
2. Eligibility to Retain the HDB Flat Post-Divorce
Whether a party can retain the flat depends on HDB eligibility conditions, separate from the Court’s decision on ownership. There are several options:
a. Retaining the Flat Under the Single Scheme
A party may retain the flat under the Single Singapore Citizen Scheme if:
- He or she is a Singapore Citizen,
- At least 35 years old,
- And satisfies HDB’s eligibility criteria.
b. Retaining the Flat with Children
If the divorcing parties have children, the party who has care and control of the children may retain the flat under the Single Parent Scheme, provided the parent is a Singapore Citizen and meets HDB’s criteria.
c. Selling the Flat
If neither party is eligible to retain the flat under HDB rules, the flat will usually be sold in the open market, and the proceeds (after settling any outstanding loan and CPF refunds) will be divided according to Court orders or mutual agreement.
3. Timing and Legal Process
The division of the flat is typically addressed during ancillary matters proceedings, which occur after the Court has granted an Interim Judgment of divorce. Parties can come to an agreement themselves or allow the Court to decide.
At PKWA Law, we also help clients reach amicable settlements through mediation, which can often result in faster and less costly resolutions.
4. CPF Refunds and Housing Grants
If CPF funds were used to purchase the HDB flat, those amounts (including accrued interest) generally have to be refunded to each party’s CPF account upon sale. Additionally, housing grants received from HDB may need to be returned depending on the circumstances, especially if the Minimum Occupation Period (MOP) has not been met.
5. Minimum Occupation Period (MOP)
If the MOP has not been met, the flat cannot be sold in the open market unless an exemption is granted by HDB. In such cases, parties may need to surrender the flat to HDB, which will compensate the owners based on prevailing market valuation.
6. Foreign Spouses
Foreign spouses who do not meet HDB’s eligibility criteria post-divorce may not be able to retain the flat, even if the Court awards them ownership. This can significantly impact division outcomes and must be considered early in the divorce process.
Speak to Our Experienced Divorce Lawyers
Navigating the legal and practical aspects of dividing your HDB flat after divorce can be complex. At PKWA Law, our experienced family lawyers provide clear, strategic advice tailored to your specific circumstances. We aim to help you achieve a fair resolution while protecting your housing and financial security.
Contact us today for a consultation, and let us guide you through your options with clarity and care.
