CPF MONIES FOR RETENTION OF FLATS

Ms Braema Mathiaparanam asked the Minister for Manpower whether his Ministry will allow the transfer of CPF monies between cash-strapped divorcing couples to help them retain their current flats and reduce the need to downgrade.

Dr Lee Boon Yang: In cases where the ex-spouse who is to retain the property has the required amount of CPF savings, the CPF Board does allow the transfer of his or her CPF to refund the CPF savings used by the ex-spouse. This is no different from using one's CPF savings to buy over the share of the property from the ex-spouse. Alternatively the spouse who gives up the flat can also choose to use cash to reimburse his or her CPF so that the property can be transferred over to the ex-spouse. There are other alternatives for cash-strapped divorcing couples who want the property to be transferred. For example, the spouse taking possession of the flat may approach HDB to seek an additional housing loan to refund the CPF account of the ex-spouse. HDB will consider these on a case-by-case basis and provided that the applicant meets HDB's loan conditions. If the spouse is unable to service the additional loan for the current flat, and transferring CPF monies between ex- spouses to meet the CPF obligation is not an option, the more prudent and effective alternative would be to downgrade to a smaller and affordable flat.