As a divorce lawyer in Singapore, one of the most common questions that come out during the consultation process relates to HDB divorce transfer.
Almost all of my clients purchase their HDB flat using their CPF funds (at least partially).
In some cases involving uncontested divorce Singapore, one party agrees to transfer the flat to the other party without request for any CPF refund.
How does such a HDB divorce transfer work?
Old CPF rules
Under the old CPF rules, the HDB flat cannot be transferred unless all the CPF funds (accrued interest) used by the other party for the mortgage has been refunded into his/ her CPF account.
Very often, the person receiving the property does not have sufficient funds to take over the flat and refund the other person’s CPF account with accrued interest. In this case, the couple may be forced to sell the flat even if they have children and need the flat.
Under the new system, HDB divorce transfer can take place in such a case. The HDB flat can be transferred from one party to the other even if there is no full CPF refund with accrued interest.
In the alternative, HDB divorce transfer can also take place with a partial refund to the other party’s CPF account.
Husband transfers the matrimonial HDB flat to wife after the divorce. The Husband had used CPF funds (with accrued interest) amounting to S$100,000.
In the event that the Wife sells the flat after the divorce, her CPF has to be refunded in full (with accrued interest) for all the CPF funds she paid towards the flat. In addition, the amount used by her husband (S$100,000) has to be refunded into her CPF account.
See: Lorna Tan, “Getting a divorce without losing her home”, The Straits Times, 2 March 2008
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