Unit Trusts and Investments in a Malaysian Divorce

Why unit trusts need care

Under Section 76 of the Law Reform (Marriage and Divorce) Act 1976, assets acquired during the marriage can be divided, and unit trusts built up in those years are usually included. The difficulty is that their value changes daily and units can be cashed out quietly.

A fair split depends on knowing three things: what is held, what it is worth, and on which date.

Find every holding

List every fund and platform. Useful sources include:

• annual and transaction statements
• the fund company or distributor
• your agent
• online fund portals or combined statements

People often hold funds with several providers, so one statement rarely shows everything. Ask each provider or agent for a full holdings summary as at a recent date, and keep the reference numbers.

Note accounts in your spouse’s name too. The court looks at marital assets whoever’s name is on the account.

Work out what they are worth

The usual method is the number of units times the net asset value (NAV) per unit on a chosen date. Prices change daily, so agree that date in writing.

Several things change the real figure: declared but unpaid distributions, sales charges already deducted, and exit or redemption fees. Some funds also have a gap between buying and selling prices, so ask for the redemption value, not just the quoted price.

Trace what was invested during the marriage

Funds bought before the marriage may be treated differently. To draw that line, you need each holding’s purchase history.

Gather records of monthly investments, lump sums added and distributions that were reinvested. Reinvested dividends increase the number of units, so they can form part of the marital share even though no new cash went in.

If a fund was started before the marriage and topped up during it, only part of it may be marital.

Decide how to split the units

There are two usual ways:

• Transfer units to the other spouse. This keeps the investment and avoids exit fees, but some funds limit or do not allow transfers between people.
• Redeem and split the cash. This is simpler, but may bring exit costs and fixes the value on the day you cash out.

Ask each provider what they allow before choosing. The right choice can differ from one fund to another.

Common problems and how to avoid them

• A spouse cashes out units before settlement. Collect statements early.
• Prices move between agreement and transfer. Fix a valuation date and a transfer deadline in the agreement.
• Reinvested distributions are left out of the totals. Check the latest transaction history before you sign.

Organised records let your lawyer value and trace the holdings quickly, and make it harder for anyone to leave an account out.

Looking to engage a divorce lawyer? If you are unsure how your unit trusts or ASB should be valued and split, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.