Disposing of Assets Before Divorce in Malaysia: Is This Legal?

Disposing of Assets Before Divorce in Malaysia: Is This Legal?

Here is a quick story. You may be facing the same issue or have heard of the same issue happening to people around you.

The story goes like this.

During the course of marriage, both the husband and wife are enjoying a comfortable lifestyle (with children) from their substantial wealth accumulated throughout their marriage.

Marriage seems to be fine until it is not anymore. The relationship hits the rock bottom due to the fact that the husband has committed an extra-marital affair.

Then imagine that both parties are going through a divorce now in Malaysia. The wife intends to claim for alimony for herself and maintenance for her children after the divorce. This is to ensure that they can still maintain the current lifestyle without being affected by the breakdown of the marriage.

Out of the sudden, the husband seems to be broke. He is trying to sell off his assets and properties to defeat the claim of the wife in the divorce proceedings.

Here comes the question.

Is it legal to dispose of assets before divorce in Malaysia?

In such circumstances, it is clear that the husband is trying to hide or sell off the matrimonial assets in order to prevent any claim from the wife.

This act is also clearly preventing the Court from making any order for division of matrimonial properties between parties. At this point, you may be wondering if the husband can act in such a way without any repercussion.

So, what can the wife do at this point?

In actual practice, if both parties are in the course of a divorce proceedings, the wife may consider the following:

• Apply to the court to ‘un-do’ or set aside the disposal of assets; and/or
• Apply to the Court for an injunction to stop the husband from disposing any valuable assets before the divorce since the Court shall have the power to order for division of matrimonial assets.

Essentially, it is important to understand that the reason for this is protect the interest of parties since the matrimonial properties are supposed to be enjoyed by both parties, had the divorce not occurred.

Therefore, if you are encountering such an issue during the course of a divorce, it is best to speak to a divorce lawyer in order to get informed on the next course of action that you can take to protect your interest.

Get Free Advice & Quote From Our Divorce Lawyer Now In Less Than 2 Working Hours via WhatsApp