MAINTENANCE OF EX-SPOUSES AND CHILDREN

MAINTENANCE OF EX-SPOUSES AND CHILDREN: 3.

Mdm Cynthia Phua asked the Minister for Community Development, Youth and Sports from 2007 to 2009 (a) how many husbands had stopped paying maintenance to their ex-wives and children because they declared themselves bankrupt; and (b) whether the Government will consider separating matrimonial debts from business and related debts so as to give better protection to the ex-spouses and children.

Dr Vivian Balakrishnan: Between 2007 and 2009, there was an average of 3,400 defaulters per year on maintenance orders. Most defaulters cite financial difficulties due to unemployment, reduction in salary or having additional responsibilities as reasons for not paying their maintenance debts. We do not have

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the figures on how many husbands stopped paying maintenance to their ex-wives and their children because they declared themselves bankrupt. But in any case, I want to emphasise that being made a bankrupt is not an excuse which can be used to avoid paying maintenance to the ex-wives and to the children. Upon being made a bankrupt, a person will have to submit his statement of affairs to the Official Assignee to disclose all his assets and his liabilities. If the bankrupt owes maintenance arrears to his ex-wife at the start of the bankruptcy process, he will need to declare these arrears in his statement of affairs. These become in a sense part of his liabilities. If the ex-wife wishes to lay a claim against the bankrupt's estate, she can then file a proof of debt against the bankrupt's estate for the amount that is owed to her. If the bankrupt declares that the maintenance arrears owed to his ex-wife in his statement of affairs, the Official Assignee will advise the ex-wife to file such a proof of debt against the estate.

Currently, our law does not give priority to the maintenance arrears owed to the ex-spouse over the other debts in the bankruptcy. This is something which we will consider very carefully if there is a need to do so in the future. This is a complex point and not something which we should enter into lightly.

That is with respect to maintenance arrears. Let me give you some reassuring news with respect to the regular monthly maintenance. Bankrupts will have to submit reports on their income and expenditure to the Official Assignee. The bankrupt will need to disclose his monthly maintenance payments, if any, in his statement of income and expenditure and inform the Official Assignee about the maintenance orders which have been made against him. Once the Official Assignee is aware of this, the Official

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Assignee will take the full amount of the maintenance into consideration and provide for this as a necessary item of expenditure on the bankrupt's part when assessing the monthly instalment payable by the bankrupt. In other words, the Official Assignee will take into account what he needs for himself as well as the full amount of the monthly maintenance that has been ordered by the court before making other payments into the bankruptcy's estate.

When a bankrupt is discharged from bankruptcy, he is no longer obliged to pay his previously unpaid debts except – and this is a big except – one which relates to any Order made in proceedings under the Women's Charter relating to family matters. In other words, claimants to maintenance debts can continue to enforce their maintenance orders even after the ex-spouse has been discharged from bankruptcy. I have gone to some length to explain all these because I wanted to emphsise the point that even if someone is declared bankrupt, the ex-wife and the children still have full recourse to get the maintenance arrears as well as to have access to regular maintenance payments. So, I hope I have reassured the Member on that point.

Mdm Cynthia Phua: Mr Speaker, I am glad to hear that the bankrupt's family still has recourse to claim for maintenance in that sense. But can the Minister clarify that in this case, there is a need for the Official Assignee to have constant contact with the Family Court as well? So, whether this channel is there – because the families would want to claim for the maintenance and if they have difficulties they will go to the Family Court. So, if the Family Court has a direct access to an Official Assignee's office, that will help the Family Court per se .

The other point itself is that during the Committee of Supply (COS) debate we heard about the improved procedures for claims of maintenance

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fees. Can the Minister elaborate whether there are more successful cases after this improvement has been made in terms of process for the claims for maintenance fees?

Dr Vivian Balakrishnan: I accept the Member's point about making sure there is adequate communication and collaboration between Family Court on one hand and Official Assignee on the other hand. These are procedural matters that we will look at.

With respect to her second question on success, I think the Budget Debate was just two months ago. I do try to work fast but give me some time.