The importance of protecting and preserving your own assets needs little explanation.
In this article, we will go through the various methods and scenarios in which you may wish to take action to preserve your assets.

Preserving Pre-Marital Assets

Prior to getting married, a Party may have certain assets in their name, and may wish to retain them in the event of a subsequent divorce. If so, one must be aware of the difference between pre-marital assets and matrimonial assets.

The effect of this distinction is that:

• A pre-marital asset is not subject to division by the Family Courts as part of divorce proceedings.
•  A matrimonial asset forms part of the matrimonial pool of assets that the Family Courts will divide between Parties during divorce proceedings.
  Pre-marital assets are, by definition, acquired before the marriage. On the other hand, matrimonial assets are typically acquired during the course of marriage. The caveat is that pre-marital assets can be considered as matrimonial assets, if any of the following conditions are met:
•  Ordinary Use or Enjoyment
  If the pre-marital asset has been ordinarily used or enjoyed by both Parties or one or more of their children while the Parties are residing together for the purpose of shelter, transportation, household, education, recreational, social or aesthetic use.
• Substantial Improvement
  If the pre-marital asset has been substantially improved during the marriage by the other Party or by both Parties to the marriage.

As such, if a Party wishes to ensure that their pre-marital assets will not be liable to division as part of the divorce, they must ensure that those assets fail to qualify as matrimonial assets. Therefore, the Party should ensure that their pre-marital assets do not satisfy the aforementioned conditions.

Preserving Assets for your Family

Where a Party is concerned with ensuring that their assets are preserved for their family, the following options are recommended:

• Will

Having a Will drafted is important if the Party has a specific manner by which their estate is to be distributed upon their passing. If a Will is not made, the distribution of the deceased’s estate will be in accordance with the rules established in the Intestate Succession Act.

• Trust

If the Party wishes to ensure that their children’s educational or medical expenses will be provided for in the future, they may wish to make a trust for such purposes.

•  CPF and Insurance Policy Nominations

As a Will does not govern CPF or insurance policy nominations, the Party should initiate these nominations as well.

Entering into Pre-Marital or Post-Marital Agreements
Where a Party is able to come to an agreement with their fiancé(e) or spouse on how their assets are to be divided in the event of divorce or separation, they can then enter into a pre-marital or post-marital agreement accordingly.

Engaging a Wealth Management Professional or Lawyer

Beyond simply preserving your assets, you may also wish to receive professional advice or services to manage and grow your wealth. In such circumstances, it may be prudent for you to engage a wealth management professional to assist you in planning and investing your funds.