HDB Flats and Divorce in Singapore
Divorce in Singapore often raises many questions, and one of the most pressing concerns we hear at PKWA Law is:
“What happens to our HDB flat after divorce?”
As the HDB flat is usually a couple’s most valuable matrimonial asset, understanding how it is treated under the law and HDB regulations is crucial.
1. HDB Flats as Matrimonial Assets
Under the Women’s Charter, an HDB flat is generally considered a matrimonial asset if:
- It was acquired during the marriage, or
- It was acquired before marriage but used as the matrimonial home.
This means the flat will be included in the pool of assets for division, regardless of whose name is on the title.
The Court will divide matrimonial assets in a “just and equitable” manner, considering factors such as:
- Financial contributions (e.g. salary, CPF, cash payments)
- Non-financial contributions (e.g. caring for children, maintaining the household)
- The needs of the children (if any)
- Length of the marriage
- Any prior agreements between the parties
2. Who Can Retain the HDB Flat After Divorce?
Even if the Court awards a party ownership of the HDB flat, HDB’s eligibility rules determine whether that party can legally retain it.
a. Retention Under the Single Scheme
A party may retain the flat under the Single Singapore Citizen Scheme if:
- They are a Singapore Citizen,
- At least 35 years old, and
- They meet all other HDB criteria.
b. Retention With Children (Single Parent Scheme)
If there are children from the marriage, the parent with care and control of the children may retain the flat under the Single Parent Scheme, provided they are a Singapore Citizen and meet HDB’s conditions.
c. Sale of the Flat
If neither party qualifies to retain the flat, it will usually be sold in the open market, with the sale proceeds (after settling the housing loan and CPF refunds) divided according to the Court order or by mutual agreement.
3. When Is the Flat Divided?
The division of the HDB flat is decided during ancillary matters proceedings, which occur after the Court has granted the Interim Judgment of divorce.
Parties may:
- Reach an agreement through mediation (often faster and less costly), or
- Allow the Court to make the decision.
4. CPF Refunds and Housing Grants
- If CPF funds were used to finance the flat, the amounts (including accrued interest) generally must be refunded to each party’s CPF account upon sale.
- CPF Housing Grants may also need to be returned if HDB conditions are not met.
- For flats sold before the Minimum Occupation Period (MOP), grants may have to be refunded in full.
5. Minimum Occupation Period (MOP)
HDB rules require that a flat meets its MOP (usually 5 years) before it can be sold on the open market.
- If the MOP is not met, the flat cannot be sold unless HDB grants an exemption.
- In such cases, the flat may need to be surrendered to HDB, which will compensate the owners based on current market valuation.
6. Foreign Spouses and HDB Ownership
If one party is a foreign spouse, retaining the flat after divorce may not be possible due to HDB’s eligibility conditions.
- Even if the Court awards the foreign spouse the flat, HDB may not allow retention unless all criteria are met.
- This can significantly affect how matrimonial assets are divided and should be considered early in the process.
7. Industry Insights: Costs and Process
Clients often ask how much this process will cost. While fees vary depending on complexity:
- Uncontested divorces involving HDB flats are generally more affordable and faster to resolve.
- Contested divorces over HDB division can be lengthy and costly, especially if they involve children, multiple properties, or CPF issues.
Speak to Our Divorce Lawyers
Dividing an HDB flat during divorce is one of the most complex parts of family law in Singapore — blending Court orders with HDB’s eligibility rules and CPF regulations.
At PKWA Law, our experienced divorce lawyers will:
- Advise you on your eligibility to keep the HDB flat
- Guide you through CPF and HDB refund requirements
- Help you achieve a fair and practical outcome through mediation or litigation
Contact us today for a consultation and let us help you protect your home and financial security during divorce.
