Spouses who fail to contribute financially to family expenses often receive a significantly smaller share of matrimonial assets when their marriage ends.
When love fades, financial contributions become a major point of contention, as a self-employed husband with multiple failed business ventures recently discovered.
During his 15-year marriage, the 47-year-old man launched five businesses—ranging from investment firms to a tech startup for queue management services. However, four of these ventures failed, and none provided a steady income for him or his family. By his own admission, his remaining business was also unprofitable, and he did not earn any regular income.
Unsurprisingly, his wife, a regional human resource manager, bore the bulk of the household expenses. Although her salary was undisclosed, she managed to accumulate over $4 million in cash, investments, and property before being retrenched in 2023.
In stark contrast, the husband had just over $200,000 in assets to his name—accounting for only 5% of their matrimonial assets.
Financial Contributions and Asset Division
Typically, homemakers contribute less financially but compensate through caregiving and household management. However, in this case, the wife not only covered most of the family’s expenses but also acted as the primary caregiver for their two children despite having a demanding career.
She stated that her husband contributed little to the family and spent much of his time “drinking and partying under the guise of networking for business.” She also claimed that he frequently used her money to fund his overseas trips.
When the case reached the High Court, Judge Choo Han Teck reviewed messages from the family’s phone records and determined that the wife’s parents were more involved in caring for the children than their father.
“The WhatsApp messages show that the grandparents played a greater role in caring for the children than the husband,” the judge noted.
Since the husband’s ventures never took off, he could not prove that he made meaningful contributions toward family expenses.
Ultimately, he was awarded a 25% share for indirect contributions, and his overall share of the matrimonial assets was only 15%, with his former wife receiving 85%.
Key Legal Takeaways from the Case
1. Child Maintenance is a Shared Responsibility
Both parents are legally responsible for their children’s financial well-being, regardless of their personal financial struggles.
- The wife requested $2,000 per month from the husband to support their two children, as she was already covering approximately $4,000 in expenses.
- The husband, citing his lack of income, offered only $1,000.
Despite his unsuccessful entrepreneurial efforts, the court ruled that he must pay $2,000 per month.
Judge Choo emphasized:
“The husband is not a homemaker who cannot find full-time employment if he tries harder.”
Since he previously worked as a private banking director earning $5,500 per month, the court found it unfair for him to expect his former wife to seek reemployment while he continued his unprofitable business ventures.
2. Asset Division is Based on the Date of Divorce
The division of matrimonial assets is determined based on the interim judgment date that legally ends the marriage. This means:
- New income or assets after this date are not included in asset division.
- Any post-divorce payments toward family assets (e.g., mortgage repayments) are refunded to the paying spouse.
In this case, the wife was refunded $110,000 for mortgage payments she continued making after the divorce.
Additionally:
- The husband’s severance package (received after the divorce) was his alone.
- The wife’s severance package, received after divorce, was not considered a shared asset.
- The husband’s attempt to exclude $100,000, claiming it was a loan from his aunt, was dismissed due to lack of evidence.
The husband also attempted to offset:
- Legal fees, which the court ruled should be paid individually.
- $16,000 in investment losses, which were not shared because gains and losses after divorce belong to the individual.
3. Keep Financial Records to Prove Contributions
Maintaining financial records is crucial when proving financial contributions in a divorce.
For example:
- Both spouses claimed to have paid $30,000 toward home renovations.
- However, the husband only provided a $15,000 cheque and a $3,400 invoice, while the wife had complete receipts, invoices, and bank statements proving her payments amounted to $35,000.
As a result, the court recognized the wife’s full claim and only credited the husband for $18,400.
Final Verdict: The Importance of Contribution
After factoring in home loans and liabilities, the couple’s total matrimonial assets amounted to $4.5 million.
- The wife, with 85% of the share, was awarded $3.83 million.
- The husband, with 15%, received $670,000.
Contribution Matters in Marriage and Divorce
This case serves as a reminder that financial and non-financial contributions significantly impact divorce settlements in Singapore. Spouses who fail to contribute financially or emotionally to their families risk receiving significantly less during asset division.
For those going through divorce proceedings, keeping clear financial records and demonstrating consistent contributions to the family—whether financial or caregiving—will help ensure a fairer asset division.
At YY Lee & Associates LLC, we specialize in family law and divorce cases, ensuring that your contributions are recognized and your rights protected. Contact us at 8780-2499 for expert legal assistance in securing a fair divorce settlement.