How an astute property agent retained the bulk of $6m in assets in divorce

Case shows good financial planning can make a difference in how assets are split

- Tan Ooi Boon Invest Editor

A real estate agent was so astute in speculating in properties that he bought and sold five homes for himself and made over $2.3 million when he was just over 40 years old.

Just before he got married, he was so flush with money that he bought a resale HDB flat and paid the $668,000 purchase price in cash.

The flat eventually became his matrimonial home and he later added a $3.2 million condominium unit to his portfolio.

Although he was self-employed, he was diligent in planning for his retirement by contributing to his CPF savings, which has a balance of over $620,000 as he hits 55 in 2025.

In addition to a healthy retirement sum, he has also amassed another $1.5 million in cash and stocks. With such decent savings, he could afford an expensive car, but he chose to drive a nondescript Japanese car worth $75,000.

As he was so prudent in saving and investing his money all his life, it was not surprising that he fought tooth and nail with his 41-year-old former wife, maintaining that the bulk of his wealth was accumulated before their 12-year marriage.

Although he works only part-time now and has a monthly income of $3,000 from renting out his HDB flat, he had been the main provider for his household and three young children. His former wife draws a monthly salary of $7,700 as a clerk.

As he owned the family’s properties and paid for most of the household expenses, the High Court allowed him to retain 70 per cent of the couple’s $5.5 million matrimonial assets. This was in addition to about $1 million in cash and CPF savings which he can keep, as he had saved this sum before the marriage.

This case provides interesting insight into what constitutes premarital assets and how good financial planning can make a difference in how your assets will be divided when the relationship turns sour.

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