What Does the Court Consider When Dividing Assets?

What is Section 76?

Section 76 of the Law Reform (Marriage and Divorce) Act 1976 lets the court divide matrimonial property when it grants a divorce. It can also order an asset to be sold and the money shared.

There is no fixed formula. The court looks at the facts of each case.

Since 15 December 2018, the court can divide any assets acquired during the marriage, and no longer needs them to be the product of joint efforts. The court weighs the contribution of looking after the home and caring for the family.

What the court weighs

The court looks at:

• what each of you put in, in money, property or work
• how much each of you contributed by looking after the home or caring for the family
• debts either of you took on for your joint benefit
• the needs of any children under 18
• how long the marriage lasted

After weighing these, the court leans towards dividing the assets equally, but it may divide them in whatever shares it thinks reasonable, without any automatic 50/50 rule.

Assets owned before the marriage can also count if the other spouse, or both of you, improved them a lot during the marriage.

Money you paid in

Direct contributions include money towards the purchase price, loan repayments and renovation costs. Salary, bonuses and business income used to buy the asset all count.

Paying household bills, school fees and daily expenses also shows how you supported the family.

Looking after the home and children

A spouse who stayed home to raise the children and run the house has contributed, even without a salary. These are called indirect contributions.

Homemaking and childcare free the other spouse to work and build wealth. Malaysian courts have repeatedly said that homemaker contributions deserve real weight.

Children and future needs

The court considers what the children need and who will care for them day to day. The parent with custody may receive a larger share of the family home so the children have a stable place to live.

Courts also tend to look at each spouse’s age, health and ability to earn, especially where one gave up a career for the family.

Length of the marriage

In a long marriage, the two spouses’ contributions are usually closely mixed, and courts often give more weight to homemaking.

In a short marriage, the court may look more closely at who paid for what. It still considers every relevant factor.

Preparing your evidence

Knowing these factors early helps you collect the right papers, such as bank statements, loan records and proof of household spending. See our guide to financial disclosure for what to prepare.

Looking to engage a divorce lawyer? If you are unsure how much your contribution counts, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.