How Are EPF and Retirement Assets Divided in Divorce?

Is EPF matrimonial property?

Under Section 76 of the Law Reform (Marriage and Divorce) Act 1976, the court can divide assets gained during the marriage. EPF (KWSP) contributions made during the marriage count as matrimonial property.

This covers both your own and your employer’s contributions.

The EPF Act 1991 sets how the fund runs. It does not stop the divorce court from counting EPF as a shared asset.

How does the court work out the EPF share?

The court looks at how much EPF grew during the marriage. Savings from before the marriage are usually kept out.

It compares EPF statements from around the date of marriage and around the date of the divorce case. The difference is the part that can be shared.

Both spouses’ EPF accounts are counted, not just one. If one spouse saved much more, the court weighs that when deciding a fair split.

Your lawyer can ask for EPF statements through financial disclosure, the step where each side shows what they own.

Can EPF be moved to the other spouse?

It can. Since 1 July 2008, sections 53A and 53B of the EPF Act 1991 let EPF move part of one spouse’s savings into the other spouse’s EPF account under a sealed court order. The money stays in EPF and is not paid out in cash.

The court can also use an offset. The spouse with less EPF may get a bigger share of other assets instead, such as the family home or other savings.

In some cases, the court orders the EPF holder to pay a lump sum from other money to even things out.

What about private schemes and pensions?

Private Retirement Schemes (PRS) and pension funds built up during the marriage are also shared under Section 76.

Government pensions, company pension plans and voluntary retirement savings may all be included. The court may use their value today or their expected value at retirement. Some pensions may need a professional valuer.

If either spouse has several retirement accounts, full financial disclosure matters. Ask for statements for every one.

Does a homemaker get a share?

Yes, they can. The court recognises that a spouse who ran the home and raised the children helped the working spouse earn and save. This is called an indirect contribution.

The non-working spouse does not need to have paid into the EPF account. The share depends on how long the marriage lasted and what each person contributed.

What should you do now?

• Get EPF statements for both spouses.
• Gather papers for any private retirement plans.
• Think about how losing part of your EPF may change your retirement plans. A financial adviser can help with this.

Speak to a lawyer who handles matrimonial property early, before any settlement is agreed.

Looking to engage a divorce lawyer? If you are unsure how your EPF or pension will be counted, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.