What matters when splitting assets in a divorce

Couple with $lm income fought tooth and nail over their home, the most valuable asset

- Tan Ooi Boon

High income does not always equate to wealth, especially if you are a bit free with the money, as an unusual divorce involving a couple who drew a combined monthly salary of over $80,000 shows.

The wife earned around $48,000 a month as a director in an insurance firm, while the husband pulled in about $36,000 monthly as an investment banker before he stopped working not long before they split up in 2020.

The couple enjoyed an annual household income of over $1 million but had cash savings of only about $300,000, with personal debts of over $140,000. Despite years of working, they were unable to have cash savings of even six months of their income each.

The value of assets they amassed during their decade-long union came to about $4.5 million, the bulk from the matrimonial home and CPF savings.

It is no wonder that during their divorce, they fought tooth and nail over their most valuable asset, the home. They even produced lists of household items that they paid for to justify a bigger share of the pie.

While most divorce cases involve higher-value assets only, a High Court judge of the Appellate Division had the unenviable task of sieving through the couple's lists to exclude petty purchases that should not be included in the calculation to determine their share.

These included an e-scooter, a barbecue set, toaster, kettle, security camera, pressure washer, chairs, bean bags, dehumidifier, ceiling fans, water heater, mattress and even curtains.

The case prompted Justice Debbie Ong to make a special call for divorcing couples to view such proceedings as a reorganisation of their living and financial arrangements, and not opportunities to fight over various matters and engage in "forensic account of monetary matters in the marriage".