Shared assets and divorce: Expert advice on protecting your finances

Earlier this year, Angelina Jolie and Brad Pitt reached a divorce settlement after an eight-year legal battle. Yet their infamous dispute over their vineyard estate Château Miraval – aptly dubbed “the war of the rosé” – remains unresolved.

Closer to home, Singapore has seen its own high-stakes asset disputes. In 2022, CNA reported on an Indonesian couple locked in a legal fight over three properties. The woman is claiming her share of the properties co-owned with her ex-husband and his brother, despite his argument that they were family investments, not matrimonial assets. This case highlights how asset division in divorce can span national borders, raising crucial questions of ownership, contribution, and financial protection.

In 2024, The Straits Times reported on a 62-year-old director’s $7.8 million asset dispute with her ex-husband after 30 years of marriage. This case underscores the complexity of asset division in long-term marriages, particularly when one partner has been the sole financial provider while the other managed domestic duties. The court was tasked with balancing both financial contributions and non-financial roles, such as caregiving, in determining a fair division of assets.

With high living costs driving many couples in Singapore to pool resources into shared investments, divorce often raises thorny questions about dividing assets. How can couples safeguard their finances before saying “I do”?

The pros and cons of joint assets

“Shared investments often symbolise a commitment to building a future together,” says Ivan Cheong, a partner at Withers KhattarWong and head of the Singapore Family Team. Whether it’s pooling resources for a home or launching a business, these investments can foster wealth and a sense of unity.

“Couples are motivated by emotional and practical reasons, like purchasing a matrimonial home,” Ivan adds. However, as high-profile disputes show, the same assets that unify during good times can become contentious during a split.

Ambiguity around ownership is one of the biggest risks in shared investments. In the Indonesian couple’s case, the ex-wife’s name was “unintentionally” added to property titles, sparking a dispute over ownership.

“Emotional biases and the fear of difficult conversations often prevent couples from addressing these issues early,” says Jeremy Tan, CEO of Tiger Fund Management. Which is why he emphasises on the importance of proactive planning.

Additionally, Ivan suggests  implementing prenuptial or postnuptial agreements which can define asset division to ensure clarity and fairness. According to Singapore Legal Advice, prenuptial agreements in Singapore can outline financial contributions towards shared assets and how they’ll be divided. While not automatically enforceable, such agreements provide clarity and help set expectations, particularly when paired with legal advice.

Jeremy adds, “Equality in financial contributions can help avoid disagreements. For unequal contributions, formal agreements ensure fairness.” Joint accounts with dual signatories can also provide equal control over funds. For a safer approach, he recommends low-risk investments like treasury bills, though he cautions that no investment is entirely risk-free.

The P word

While some see prenuptial agreements as distrustful, experts view them as tools for fostering transparency. “These agreements act as financial insurance, not a sign of cynicism but of preparedness,” Ivan explains.

No one enters a marriage expecting it to fail, but safeguards can provide peace of mind.This is especially important for women, who often face greater financial challenges post-divorce due to caregiving responsibilities and the difficulty of re-entering the workforce.

“Investing together requires trust,” Ivan concludes, “but decisions should not be based solely on the assumption of a lasting relationship.” With a balanced approach, love and money can coexist, offering both security and confidence.