Recent CPF changes allow for a more eqitable distribution of the matrimonial home and let the ex-wife keep a roof over her head.
DIVORCING couples come under even greater emotional strain when they try to sort out who gets what.
Last October, measures were put in place that tilt the balance towards divorced women who would otherwise get little from the sale of the matrimonial home – or could even lose the roof over their heads.
Under the revised Central Provident Fund (CPF) rules, retirement funds will be distributed more equitably when coupples split their matrimonial property .
In a nutshell, the changes allow CPF assets such as property or unit trusts, or sale proceeds from these assets, to be transferred immediately to the ex-spouse’s account.
Most Singaporeans use CPF monies to buy the matrimonial home. In some cases, the husband is more willing to transfer it to his former wife, says lawyer Amolat Singh of Amolat Singh & Partners, especially if she can show she’s entitled to a big share.
CPF rules
The old system
The property could not be transferred to the wife until and unless all the monies used by her ex-husband for the mortgage had been fully reimbursed into his CPF account, together with the accrued interest.
Often, the parties did not have the funds to do so, so they were left with no choice but to sell the flat.
This could place them in financial straits, especially if they’d paid a high price for the home. Also, the spouse with the kids would probably have to find alternative accommodation.
This was what happened to Madam Shirley Chong (not her real name), who downgraded to a three-room flat from a four-roomer. Her two kids had to move to a new school as well.
The court had ruled that the flat should go to her, but she did not have the money to make the reimbursement, so the transfer could not take place. The flat was sold and a charge placed on her ex-husband’s account.
He is not yet 55 years old and it remains to be seen whether she will get her money when he reaches that age, as a mandatory Minimum Sum has to be retained in his CPF account.
The new system
The property can be transferred immediately from one spouse to the other even if the funds have not been fully reimbursed into the CPF account.
A charge is placed on the account so as to secure the refund of the CPF monies in the event of a sale.
If the wife sells the property , she must make a reimbursement equivalent to the total amount of the CPF monies used by her ex-husband, into her own CPF account.
This ensures that there is no leakage of funds from the CPF system.
The refund is just postponed until there is a sale, and the refund or reimbursement is made into her own account.
Madam Chong would be far better off under the new rules as the court could order an immediate transfer of the flat to her with or without a reimbursement.
Here are three real-life cases where divorced couples have benefited from the new rules.
Couples who have benefited
Case 1
MARRIED for six years, Mr and Mrs Victor Lee (not their real names) bought a three-room HDB flat now worth $200,000 on the resale market. He owed her $9,000 for maintenance in arrears.
Finally, they divided the flat in such a way that she took over his share by paying $60,000 into his CPF account. This represented the CPF monies he had withdrawn to buy the flat, plus accrued interest, less the debt of $9,000.
Said Ms Lie Chin Chin, the managing director of law firm Characterist: ‘Without the revised ruling, the $9,000 would have remained an outstanding debt. This ruling permits a partial refund of CPF monies into the ex-husband’s account, so Mrs Lee managed to offset the debt with the sum that was supposed to be refunded into his CPF account.’
When she sells the flat, however, she is required to refund any CPF monies she used for the property , plus the sum of $9,000, into her CPF account.
Case 2
AFTER 10 years of marriage, Mr and Mrs David Lim (not their real names) called it quits. At the point of divorce, she had no income and was thus unable to secure a housing loan. She had custody of a child and they needed a roof over their heads.
The Lims agreed that he would transfer his share in their five-room flat worth $400,000 to her without making any refunds into his CPF account. She managed to take over the flat in her sole name and continued living there with her child.
Without the revised CPF ruling, the division of the matrimonial flat could have posed a financial burden. The flat would have had to be sold or she would have had to take it over.
If the flat had been sold, most of the proceeds would have been refunded into his CPF account. There would have been little cash left over to be distributed. She would not have had the funds to buy another flat.
If she had taken over the flat, she would have had to get a loan so she could refund the monies into his CPF account. But she had no income, so her chances of getting a loan would have been practically non-existent.
Case 3
WHEN Mr and Mrs Joseph Ang (not their real names) bought their matrimonial home for $550,000 more than 10 years ago, they put in equal contributions using CPF monies.
The property is now worth $1.8 million. She paid for the renovation costs of $450,000.
They agreed to divide the house 80:20 in her favour. This meant he should receive $360,000.
But the sum due to be refunded into his CPF account was about $420,000 as the refund had to include the accrued interest on the CPF monies used. They agreed that she would take over his share by paying only $360,000 into his account.
Court order needed
Lawyers point out that the new CPF rules do not automatically apply in all divorce cases. A court order must first be made.
The onus is on the court to explicitly state that one spouse can transfer his or her share of the property to the other without having to refund the monies used. Only then can the transfer take place.
If the court does not make such an order, and it is purely the couple’s decision to buy over each other’s share of the property , the old rules still apply. The transaction must be done at fair market value and the monies must go back to the respective CPF accounts.
Dividing the assets
IN DECIDING who gets what, the law requires any division of matrimonial assets to be just and equitable.
Courts weigh certain factors when determining how assets should be split.
Matrimonial home
Contribution of each spouse: The starting point is the financial contribution that each party has made to initial payments and monthly mortgage payments.
Any payments made through the Central Provident Fund are also taken into account, said lawyer Amolat Singh.
Non-financial contributions: The court looks at who paid for the renovations; who bought the furniture, fittings or furnishings; who settled the monthly maintenance charges; and who paid the utility bills.
Also covered are expenses incurred for the welfare of the family and while looking after children or an aged or disabled family member.
Other assets
Efforts and contributions made by each party towards their acquisition: For example, for a business, the party making a claim must prove he or she has contributed to its success. One way is to show he or she has been involved in its administration or operations.
The court might not divide up these assets in the same proportion that it would the matrimonial home. For instance, the home might be split 50:50, but not the other assets.
Other factors: The court will consider the length of the marriage, the age and health of each spouse, and the couple’s standard of living during the marriage.
Source : Sunday Times – 2 Mar 2008
Urban Planning: Putting the WOW into a masterplan
Posted by luxuryasiahome on March 2, 2008
A good urban plan must have impact and give a sense of excitement, says Jeffrey Ho, executive vice-president of home-grown Surbana Urban Planning Group, which has won global planning awards
HOME-GROWN Surbana International Consultants, which used to be part of the Housing Board (HDB), is well-known for winning architecture awards for its work in designing and building Singapore’s public homes.
But elsewhere in the global arena, Surbana has also carved out a name for itself. It has fought off competition from international firms to win awards and clinch contracts to create masterplans for various projects, and even whole cities.
Surbana’s urban planning arm, Surbana Urban Planning Group, has traversed far and wide to draw masterplans for diverse locations including China, the Middle East, Indonesia, Sri Lanka, South Africa and Cambodia.
Some of Surbana’s masterplans to have won international awards include those for Tianjin Port Island in China, the Van Chuong New Urban Area in Vietnam and Greater Doha in Qatar.
Q What defines masterplanning and what do you consider when planning a new town or project?
A A masterplan is actually a physical plan that defines land uses in a specified area.
More specifically, in our context, it is called urban planning.
This requires a multi-disciplinary group of professionals to put together plans, perspectives, scale models, computer- generated animation and written reports.
There are many aspects of a site that urban planners need to understand before any masterplan can be developed. These aspects are related to existing conditions such as: land uses, transport, landscape, community values and traditions, climatic conditions, constraints, environmental quality, vibrancy and the general feel of the place as a whole.
Q What does the work of urban planners entail?
A A masterplan can take three months to a year to complete.
We develop the plan through site visits and meetings with the relevant authorities, local businessmen, academics, fellow consultants and stakeholders. We also review documents, statistical reports and so on.
We go beyond being a tourist in the country that we are planning for. We have to live and breathe the country.
Sometimes, I find urban planning quite intuitive. Once you understand the place, you have a knack for knowing what goes where.
There is a pattern and formula you can apply, but you need to adapt it to the local context. For urban planning, there is no one fixed approach.
Q What challenges do you face and how do you tackle these issues?
A Sometimes being an Asian firm is a disadvantage as we are competing with very established European firms. But this does not deter us. Rather, it sharpens our professional and negotiation skills.
We started small but we have tried as much as possible to get international exposure. Slowly, after doing more projects and getting a proven track record, we have started to gain a reputation. It’s a very steep learning curve but we are getting there.
Also, Singapore has a tight labour market, which makes it hard to find good and committed people – and cost is high.
Q How different is it working overseas?
A Language can sometimes be a big problem in places such as Vietnam and Cambodia. You need a translator, and sometimes the essence and meaning of words get lost in translation.
Then other things you have to consider include how to find the right place to get the information you need, understanding the political situation of various countries and being able to respond to changes in government policies. Basically, we have to be more flexible.
Q So what makes an iconic masterplan?
A A good urban plan must be what I call ‘imageable’. You have to look at it and go ‘wow’. It must have impact and make you feel a sense of excitement.
If it is well-composed, you also get a certain feeling of ‘comfortability’.
Some key aspects of an iconic plan are: attractiveness, convenience and efficiency.
Our projects in the Middle East are examples of mega and iconic masterplans. One of them is the Al Salam City Masterplan that we did in 2006 – it is a 2,000ha site in Umm Al Quwain – one of the emirates of the United Arab Emirates.
Our clients were so satisfied that they have engaged us to implement the masterplan.
From there, we went on to clinch the biggest masterplan project with the Qatar government: a 4,000 sq km planning of two municipalities.
Most of the Middle East projects are done on a clean slate with hardly any constraints. And here lies the golden opportunity for us to showcase our creativity, capabilities, knowledge and skill in delivering a project on time and meeting international standards.
Q What are some current global trends in urban planning?
A The biggest buzzword now is sustainability. Everywhere you go, people are ‘going green’. Future urban planning will place special emphasis on eco-friendliness.
Environmental issues have always been part of our urban- planning philosophy. But now more than ever, this needs to be expressed physically in our plans, and in the landscape too, using green spaces and green technology.
There are two major trends on top of this – one is the desire to create a ‘must visit’ destination that attracts investment and people.
The masterplan must have that ‘wow’ factor I talked about, that differentiates the location and helps it stay ahead of other developments. This is more prevalent in the Middle East.
In other places like China, the other trend is more apparent – that of using the masterplan to focus on solving issues such as traffic congestion, environmental pollution, housing needs, growing population and the need to conserve.
Q Which is your most memorable project?
A I have to say the next project will be the most memorable one, because you start all over again. Every project is interesting so I can’t really single out any one.
But for me, the greatest job satisfaction is actually the interaction with my clients. If they are really enlightened and are open to ideas, the whole development process becomes very stimulating and inspiring.
Follow your intuition
‘I find urban planning quite intuitive. Once you understand the place, you have a knack for knowing what goes where. There is a pattern and formula you can apply, but you need to adapt it to the local context… There is no one fixed approach.’
MR HO, on the work of an urban planner
Industry trends
Sustainability
Future urban planning will place special emphasis on eco-friendliness, says executive vice-president Jeffrey Ho of Surbana Urban Planning Group. Environmental issues have always been part of the firm’s urban-planning philosophy. But now more than ever, this needs to be expressed physically in its plans, and in the landscape too, says Mr Ho, using green spaces and green technology.
Creating a ‘must visit’ destination
Such a masterplan must have a ‘wow’ factor that differentiates the location and helps it stay ahead of other developments, says Mr Ho.
Issues-based approach
In some places like China, the masterplan is used to focus on solving issues such as traffic congestion, environmental pollution, housing needs, growing population and the need to conserve.
Source : Sunday Times – 2 Mar 2008
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