Matrimonial Asset Planning is a very important part of any long-term relationship. It is important to consider what are, and are not matrimonial assets at all stages of a relationship.

Case study:

Mr and Mrs Lee were married 15 years ago. They have 3 children, aged 13, 15 and 21. They own a landed property of $5 million under joint tenancy. Mrs Lee also has a commercial office of $800k under sole ownership. Her parent also bought a painting worth $100k as a gift for her before her marriage and it is still at her parent's house. She earns $1 million/year while her husband earns $40k/year.

Over the years, there have been conflicts over their living habits and Mrs Lee resents that her husband has not been contributing financially to the family. In fact, more than 90% of their residential property was paid for by Mrs Lee. Mrs Lee’s parents also previously gave $200k cash as a gift to help Mrs Lee have a headstart in building their family home.

Mrs Lee does not think that her husband is savvy enough to be entrusted with her wealth to look after the children, if she is gone. And while she is alive, she wants to ring-fence her assets for the benefit of her 3 children.

Mrs Lee is now contemplating divorce and would like to seek consultation.

1. One of the most important and basic step is to establish what constitutes as matrimonial assets.

Matrimonial assets often include:

• Assets that are acquired and used by either or both parties or children during the marriage.
• Assets that are acquired before the marriage but substantially improved in quality during the marriage.

The most common examples of matrimonial assets are often the family home that the couple has lived in, the family car, shares of businesses, savings, the cash balance in the couple's bank accounts, and jewellery. 

Non matrimonial assets include:

• Any asset received as a gift or inheritance.
• Gifts or inheritance that were not substantially improved during the marriage.

2. Take note of when the asset pool is determined

The time of separation and when they file a divorce are possible cut-off dates used for determining & valuing the matrimonial assets.

3. Be informed of how matrimonial assets are divided

After a marriage has been dissolved, the Court will determine how the matrimonial assets are to be divided between the husband and the wife.

Some factors considered as follows:

• Contributions made by each party in the welfare, money, property or towards acquiring, improving and maintaining the matrimonial assets.
• The needs of any children of the marriage.
• Any agreement between the parties with respect to the ownership and division of the matrimonial assets made in contemplation of divorce.
  

Before filing the papers with the lawyer, there are ways and instruments to achieve a more ideal and amicable outcome. As each situation is complex and unique, seek a financially-trained specialist in this area for consultation.