Can EPF Savings Be Divided in a Malaysian Divorce?

Is EPF matrimonial property?

EPF (Employees Provident Fund), or KWSP, is the compulsory retirement savings scheme for Malaysian employees. Under Section 76 of the Law Reform (Marriage and Divorce) Act 1976, the court can treat EPF savings as part of the matrimonial property.

What matters is when the money went in. Contributions made before the marriage are generally kept separate. Contributions made during the marriage, and the returns on them, can be divided.

How EPF is valued

Both spouses must disclose their EPF balances as part of financial disclosure. EPF statements show the total balance and a breakdown by account.

The court compares the balance on the date of marriage with the balance on the date of the divorce petition. The difference, contributions plus returns during the marriage, is the amount that can be divided.

Can the court order EPF moved to the other spouse?

Yes. Section 51 of the Employees Provident Fund Act 1991 normally protects EPF savings. But since 1 July 2008, sections 53A and 53B let EPF move part of a member’s savings into the other spouse’s EPF account, once it is served a sealed court order.

The money is not paid out in cash. It stays in EPF, and the receiving spouse can withdraw it only under EPF rules, for example at 55. EPF can only move what is in the account on the day of the transfer.

The court can also leave the EPF where it is and give the other spouse more of other assets, such as the house or cash.

If one spouse is a homemaker

A homemaker who paid nothing into EPF can still claim a share. Under Section 76, the court counts indirect contributions such as running the home and raising the children.

Courts have repeatedly said homemaker contributions have real value. Caring for the family is what let the other spouse earn and build up EPF.

Even where the EPF came from one spouse’s work alone, Section 76 requires the court to consider the other spouse’s work looking after the home and family. The homemaker’s share depends on the facts of the case and is not an automatic 50/50.

Voluntary EPF contributions

Some employees pay in more than the compulsory rate, and self-employed people can contribute voluntarily. Voluntary contributions made during the marriage are treated the same as compulsory ones.

If one spouse paid large sums into EPF to keep them away from division, the court can take that into account.

Enforcing an EPF order

After the court makes an order on EPF, a sealed copy must be served on EPF. The spouse receiving the share should check this is done, so EPF can make the transfer. If there is an appeal, EPF may wait until it is decided.

If the member withdraws EPF in breach of the order, that is contempt of court. The other spouse can ask the court to enforce the order, including by seizing other assets to cover what is owed.

Looking to engage a divorce lawyer? If you are unsure whether you can claim part of your spouse’s EPF, or how much of yours is at stake, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.