Can I Claim My Spouse’s EPF Savings After a Divorce in Malaysia?
Can I Claim My Spouse’s EPF Savings After a Divorce in Malaysia?
Most of the time, spouses may have this question in mind in the event of a divorce or if they are contemplating to get a divorce. Can I claim my spouse’s EPF savings after a divorce? This is more so if their spouse (husband) has no savings or any assets other than significant amount of EPF savings.
So, what is the relevant law on this issue? More importantly, can a wife (or even husband) claim the EPF savings of his or her spouse in the event of a divorce in Malaysia?
In such cases, it is crucial to firstly determine if the said EPF savings fall under the definition of matrimonial asset under the law of divorce in Malaysia.
Are EPF Savings Considered Matrimonial Assets?
To qualify as a matrimonial asset, it must be established that the said asset be recognised as a matrimonial asset by the Court where the asset (EPF savings) is acquired by both parties (either by sole or joint effort).
Since an EPF savings can only be acquired through sole effort (either by the husband or wife through gainful employment/work), does it mean that EPF savings cannot be recognised as matrimonial asset?
To answer this, it is important to note that it is recognised under the Law Reform (Marriage and Divorce) Act 1976 that contributions can be in form of monetary and non-monetary contributions.
Example of EPF Savings As Part of Matrimonial Assets
For example, during the course of a marriage, if a full-time housewife can prove that she has dedicated all her life to take care of the family while the husband is working and the husband is the sole breadwinner, the housewife may be able to prove her non-monetary contribution towards the EPF savings. Rightfully, she will be able to claim the EPF savings in the event of a divorce.
In short, the housewife may be able to lay a claim on the EPF savings of the husband provided that she is able to prove her contribution (non-monetary contribution in this case). Or in another words, one must prove his or her contribution to claim the EPF savings.
Withdrawal of EPF Savings After Divorce
Practically, if the Court has ordered that the EPF savings form part of the matrimonial assets, the receiver in this case may be able to get the amount of fund quantified from the EPF savings (based on the court order) into his or her own EPF account.
Such amount can only be withdrawn if the receiver:
- Has passed away,
- Is 55 years old or older,
- Is unable to work due to physical or mental incapacity, or
- Is not a Malaysian citizen and is leaving Malaysia.
Conclusion
One can claim the EPF savings of his or her spouse in the event of a divorce as mentioned provided that it is proven that one has contributed to acquire the said matrimonial asset. Further, it is important to note that although the EPF monies will be credited into the receiver’s EPF account, the withdrawal of EPF savings or monies is subject to the conditions mentioned above.
Essentially, it is advisable for parties to seek and come to a settlement for divorce in order to reach a mutual consensus rather than litigating the matter based on the law. This will not only save time but money as well. It is best to talk to a divorce lawyer in order to know what is the best approach.
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