Dividing Assets in a Grey Divorce After 20 Years

What is a grey divorce?

It is a divorce between spouses usually aged 50 or over, often after 20 years or more together. The focus moves from building wealth to protecting retirement.

The same Act 164 rules apply as in any civil divorce. But dividing assets built up over decades is harder, and both of you need to plan for living independently later in life.

How does Section 76 treat a long marriage?

Section 76 of Act 164 lets the court divide matrimonial property fairly. In a long marriage, it gives real weight to what each spouse contributed over the years, including homemaking, raising children and supporting the family.

Courts accept that a spouse who ran the home for 20 years or more has made a large indirect contribution. The longer the marriage, the harder it is to separate one spouse’s effort from the other’s, and homemakers often receive a larger share as a result.

The court also looks at each spouse’s age and health. A spouse near retirement with little earning power may need a bigger share to live reasonably.

What happens to EPF and retirement savings?

EPF is often a worker’s biggest financial asset. Savings built up during the marriage count as matrimonial property and can be divided under Section 76, even before they are withdrawn.

A government pension usually cannot be transferred directly. The court can still take its value into account, for example by giving the other spouse a larger share of the property.

Private retirement schemes and unit trusts built up during the marriage are also included. Full financial disclosure makes sure nothing is missed.

What about the family home?

After decades, the family home matters both emotionally and financially. One spouse may want to stay while the other needs their share of its value.

The court can:

• order one spouse to buy out the other
• order the home sold and the money divided
• delay a sale, for example until children finish school or to give an older spouse stability

If the home is fully paid off, its value is a major asset. If a loan remains, the court must also decide who takes it on.

How can you protect yourself?

• List every asset and debt: property, vehicles, bank accounts, EPF statements, insurance, unit trusts and business interests. Get current values where you can.
• Work out your living costs after the divorce, including healthcare, which tends to rise with age.
• If you have been out of work for years, be realistic about how hard it may be to earn again.

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