S$1 million red packet to be divided among divorced couple’s matrimonial assets
SINGAPORE: A landmark ruling by the Appellate Division of the High Court has determined that a S$1 million wedding red packet will be included in the matrimonial assets to be divided between a divorced couple. This decision reversed an earlier High Court ruling and was delivered on February 18.
The appeal was filed by both parties, referred to as H (husband) and W (wife), following a 2021 ruling by the General Division of the High Court regarding asset division and maintenance. The Appellate Division hears civil appeals within its jurisdiction, with further appeals only possible under specific conditions, such as raising issues of public legal importance.
Background
H and W married in January 2015 and had a son later that year. The couple separated in September 2017, with W leaving the family home with their child. She filed for divorce in July 2018, and an interim judgment was granted in January 2019. Both parties were dissatisfied with the 2021 High Court ruling on asset division, leading to the appeal.
The S$1 Million Red Packet
The controversial red packet was presented to the groom during the wedding’s tea ceremony, a traditional event where the couple pays respects to their elders. H’s father testified that the S$1 million cheque was intended as a gift solely for his son. W, however, received gifts including jewellery and a BMW car from H.
Despite being deposited in H’s personal account, the Appellate Division concluded that the red packet was intended for both parties. The judges noted a conversation secretly recorded by W in 2017, where she explicitly stated that the S$1 million gift was meant for both of them and should have been placed in a joint account.
Reduction in Matrimonial Asset Pool
Although the S$1 million red packet was added to the matrimonial assets, the overall pool shrank significantly from S$5.42 million to S$2.44 million. This reduction was partly due to the exclusion of H’s share in a Bukit Timah property and dividends from company shares, totalling over S$3.7 million.
In the final division, the judges ruled that the assets be split in a 66.5 to 33.5 ratio, with H receiving the larger share, taking into account both parties’ contributions.
