DIVORCE AND YOUR HDB FLAT
This article focuses on a simple scenario where parties are planning a divorce and the matrimonial assets consist of an HDB flat in either or both the parties’ names. The issues set out below are only a general guide and are not intended to be either prescriptive or exhaustive.
Exploring Different Options When Splitting the HDB Flat
In a divorce, you may ask to retain or sell the HDB flat. Your ability to retain or sell will depend on whether you meet HDB eligibility requirements. At PKWA Law, we will assist you to find out if you qualify under HDB rules.
In respect of the HDB flat, the divorce lawyers at PKWA Law will usually ask the following questions:
· What is the present value of the HDB flat?
· Is there an outstanding loan on the HDB flat? If so, is it a bank loan or a HDB loan?
· Did you and your spouse use any cash to purchase the HDB flat?
· Did you and your spouse utilize any CPF monies to purchase the HDB flat? If so, how much was used?
· What is the proportion of both parties’ direct financial contributions to the flat?
· If there is a sale, how much has been returned to each party’s CPF accounts?
· Is there a housing grant that has been paid into the CPF account of either party that must be returned to HDB?
We will also ask what you wish to claim in respect of the HDB flat:
- Whether to dispose of (i.e. sale, transfer, or surrender) or retain; and
- The division of the flat – what proportion of the value of the flat are you claiming.
Notwithstanding the above, we will also assess how practical your claim is, in the light of the size of the matrimonial assets, the relevant CPF rules and regulations, and your financial resources if you intend to purchase your spouse’s share in the HDB flat.