This is a contributed article written by Mortgage Plus, a Singapore-based mortgage advisory, and a member of Philip Capital.
For many couples, the home is not just their largest financial asset, it is also where family life was built. This makes deciding what to do with it during a divorce especially difficult. Once decisions and agreements are made, the divorce is finalised with a court order, which also includes the percentage division of assets. Thereafter, all property decisions made will be based on the agreed percentage each owner owns.
When going through a divorce, the most clear-cut way is to sell the property on the open market, and the division of assets happens once the sale is made, according to the court order. However, if one party decides to buy over a portion of the share, the situation becomes a bit more complicated.
But before we delve into the details, here are some useful definitions of phrases that we will be using throughout this article.
- Transfer: Transference of ownership from one party to another, without any money involved. It could be done from parent to child, or when one owner has a very small share in the property.
- Selling: The sale of the property to the open market.
- Resale of part share: One party buys the shares of the other party.
Market commentary like this is only useful if you can translate it into what it means for your own purchase: your entry price, holding period and exit options.
That's where many buyers get stuck. General market insights rarely tell you whether a specific unit, at a specific price, is the right decision for your circumstances.
Over time, that's also why we decided to work with agents who shared the same data-driven and advisory-led approach behind our editorial, consultants who could help readers think through decisions more objectively, rather than simply push transactions.
Today, the team has worked with more than 2,000 clients across over $5B in property transactions.
Understanding The Context
To help us describe the various scenarios, let’s take a look at Damien and Jessica, a fictional couple. Both Damien and Jessica own 50% of their marital (or matrimonial) home. Damien wants to buy over Jessica’s share and own the home fully under his name.
| Property value (at purchase) | $900,000 |
| Property value (now) | $1,000,000 |
| Loan amount | $675,000 |
| Remaining loan balance | $600,000 |
Scenario 1: Pre-MOP Or Holding Period
If a couple divorces before the end of the minimum occupation period (MOP) or holding period is met, the selling party will need to pay the necessary Seller’s Stamp Duty (SSD) when selling their share of the property.
When it comes to HDB flats, the couple needs to appeal to the Housing and Development Board for the sale, resale of part share, or the transfer of ownership of the flat. In the event that this appeal is rejected, the divorce needs to be finalised after the MOP has been fulfilled. The amount of SSD applicable will be determined by HDB.
Private residential property is a little more straightforward. The holding period starts from the date that the option to purchase was exercised. If the property was undergoing construction and fulfils the holding period during that time, there is no SSD applicable.
This means that after three years of owning the property, Jessica will need to pay about 4% SSD according to her share. Based on the value of the property, Jessica’s share is valued at $500,000, which means that she needs to pay $20,000.
Scenario 2: No Outstanding Loan
On the other hand, in a case where there isn’t an outstanding loan and the property has exited its required holding period, Damien will need to pay Jessica her share of the property which is valued at $500,000.
Here’s that breakdown:
| Cash down payment | 5% | $ 25,000 |
| Cash/CPF down payment | 20% | $ 100,000 |
| Loan amount | 75% | $ 375,000 |
At the end of this, Jessica will receive a total of $500,000, and the actual cash received will be determined after returning the amount used and interest accrued from her CPF.
Scenario 3: Outstanding Loan of $600,000
Things get a bit more complicated if there’s an outstanding loan. In this case, Damien will undergo what we call a ‘part purchase and part refinancing’. He would need to find a bank that will refinance his share as well as finance his purchase of Jessica’s share.
Therefore, Damien’s new loan has two parts:
- A loan to buy over Jessica’s 50% share of the property
- A refinancing of his portion of the existing mortgage
First, let’s look at Jessica’s share. Same as the previous scenario, the bank will finance up to 75%, which will look like this:
| Cash down payment | 5% | $ 25,000 |
| Cash/CPF down payment | 20% | $ 100,000 |
| Loan amount | 75% | $ 375,000 |
This means that Damien needs to pay $125,000 in cash plus CPF. And if he doesn’t have the required amount in his CPF, he will need to fork up the rest in cash.
The next part examines the existing loan amount. Damien’s share of the existing loan is 50%, which the bank will need to help him finance as well. Thus, his total loan will be:
| Loan to buy over Jessica’s share | $ 375,000 |
| Damien’s share of the existing loan | $ 300,000 |
| Total new loan required | $ 600,000 |
To put it simply, Damien is borrowing $375,000 to buy over Jessica’s share, and another $300,000 to take over his part of the existing mortgage. This lands him with a new loan that is worth a total of $675,000. Let’s not forget that Damien will also need to take into account any Buyer’s Stamp Duty (BSD) which he is still liable to pay.
But what does Jessica receive from this transaction?
Her share of the property is worth $500,000. But her share of the outstanding mortgage is $300,000, which must be redeemed from her sale proceeds. This leaves $200,000 remaining before any CPF deductions are made.
The $200,000 is funded by:
| Damien’s cash and CPF down payment | $ 125,000 |
| Bank loan used to purchase her share | $ 75,000 |
Choosing The Best Path Forward
The process of dividing matrimonial assets during a divorce is a complex and sometimes contentious process. Each divorce is different – with its own set of emotional and financial commitments – and the property involved is also subject to market valuations and prevailing market conditions.
While understanding the legal framework is important, the decision to divide matrimonial assets like property should also take into account affordability, future plans and financing options. Contrary to some common misconceptions, the court doesn’t always assume equal contributions from both parties during the marriage. This could result in one party ending up with a larger share than the other.
We would advise anyone facing this situation to take the time to understand the numbers, as well as the legal framework, in order to help both parties make informed decisions and move forward with more financial confidence.
A divorce not only takes a toll on your emotional and mental health, but it can affect your mental health if your finances are not considered carefully beforehand. If you’re feeling too emotional, take a step back and come back to it when you’re in a calmer state of mind.
Mortgage Plus is a Singapore-based online mortgage advisory that was launched in 2025. Its services include personalised mortgage advisory services by comparing home loan packages from multiple leading banks.
Note: This article was written on 6 July 2026. For legal advice, please seek legal counsel for more accurate information.
Commentary like this is useful for understanding the broader market. The harder part is applying those ideas to a specific property, budget or decision you’re actually considering.
That’s often where a second opinion becomes valuable.
If you’d like to discuss how this applies to your own circumstances, you can reach out for a one-to-one consultation here.
And if you simply have a question or want to share a thought, feel free to write to us at stories@stackedhomes.com. We read every message.
Frequently asked questions
What is the most straightforward way to handle property division during divorce in Singapore?
What does 'transfer' mean in the context of property decisions during divorce?
What happens if a couple divorces before fulfilling the minimum occupation period (MOP) for HDB flats?
How is the division of property handled if there is no outstanding loan and the property has exited its holding period?
What are the financial implications if there is an outstanding loan on the property during divorce?
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