What is a Divorce Settlement Agreement?

A Divorce Settlement Agreement is a comprehensive written document that outlines all the terms and conditions agreed upon by both parties during the divorce process.

It covers three critical areas: child-related issues (custody, care and control and access) arrangements for any children involved, child and spousal maintenance (if applicable), and the division of property and assets.

It is essential that this agreement is clear and detailed as it will eventually be recorded as a court order – which will be legally binding for both parties.

Child-Related Issues (Custody, Care and Control and Access)

A comprehensive plan for the child-related issues is one that outlines custody decision-making, care arrangements, access schedules, holiday arrangements, and other special occasions.

This provides stability and consistency for the children, which is crucial for their emotional well-being during the divorce transition and at the same time help both parents to understand and fulfil their obligations, fostering a cooperative co-parenting relationship.

The Divorce Settlement Agreement defines the scope of which each parent would exercise their parental rights, and also ensure that both parents understand their roles and duties.

Custody rights include making critical decisions about the child's education, religion, and medical treatments. On the other hand, care and control involves who the child will live with and make day to day decisions for the child.

Child Maintenance in a Divorce Settlement Agreement

Even after the breakdown of a marriage, both parents continue to have the responsibility to maintain their children financially. Do note that even if the parents were not married, they still have the duty to maintain their child financially.

Child maintenance refers to the financial support provided for the child's needs, including clothing, housing, education, food, toiletries, grooming needs and medical care.

Both parents are responsible for providing this support, but it is typically the primary care parent who receives the maintenance payments to ensure the child's needs are met.

This support can be established through mutual agreement between the parties and incorporated into the Divorce Settlement Agreement or determined by the court if an agreement cannot be reached.

Spousal Maintenance in a Divorce Settlement Agreement

Spousal maintenance in Singapore is designed to support the homemaker or lower-earning spouse during the transition post-divorce.

A working wife can still be eligible for maintenance if she can show that her reasonable financial needs cannot be met adequately by her income or if there is a significant income disparity between the spouses, such that she is used to a certain standard of living which the spouse had previously been provided.

While the term "wife" is commonly used, the Courts can also order maintenance for incapacitated husbands since the 2011 amendments to the Women's Charter 1961. Spousal maintenance can be awarded for a specified term or for life in some cases.

However, spousal maintenance is not meant to create a life-long dependency but to allow the receiving spouse some time to get financially established in his or her new life post-divorce. The Courts will carefully consider various factors to ensure a fair and just outcome for both parties. For more detailed guidance or personal advice, consult our dedicated divorce team.

Division of Property / Assets in a Divorce Settlement Agreement

The division of property and assets in a Divorce Settlement Agreement is a critical aspect that requires careful consideration and clarity.

The division of property and assets is governed by the Women's Charter 1961, which aims to ensure a just and equitable distribution between both parties. The Court considers various factors, including the contributions of each spouse (both financial and non-financial) towards acquiring, improving, and maintaining the assets, the needs of the children (if any), the length of the marriage, and any agreements made between the spouses regarding property distribution.

Both direct contributions, like income used to purchase assets, and indirect contributions, such as homemaking and childcare, are taken into account. The goal is to achieve a division that reflects the contributions and circumstances of both parties, ensuring that neither spouse is unduly disadvantaged post-divorce.