DIVORCED couples have benefited from recent changes in Central Provident Fund (CPF) rules which allow for a more 'equitable' distribution of their CPF monies when they divide their matrimonial assets.

Previously, divorced wives often got very little from the sale of the matrimonial home. The changes are an attempt to help them get more money and not face financial hardship.

Since the changes came into effect on Oct 1 last year, lawyers have helped their clients avoid the financial hardships which could have occurred had the rules remained unchanged.

For instance, under the old ruling, if $100,000 had been used from the CPF account to buy the matrimonial property, the $100,000 must go back into the member's CPF account, together with the accrued interest.

This is the case even if the court had awarded the former spouse half the proceeds, or $50,000. The reason is that members are not allowed to withdraw their CPF money until they reach the age of 55.

With the change, the courts can now issue an order to transfer $50,000 from the member's CPF account to the former spouse's CPF account.

Another change allows for the immediate transfer of a property to the former spouse.

In the past, when a member used his CPF money to buy a property and the court ordered the ownership to be transferred to the ex-spouse, the member must return to the CPF account whatever amount was due to it.

In cases where a wife had no money to refund to her former husband's CPF account, the transfer of the home could not take place. The court might then have to order a sale of the property which might not be ideal in a weak property climate as it might fetch a low price.

Read the full report in The Sunday Times.