for Non-Muslims Divorce in Malaysia

When Equal Division of Matrimonial Assets is a Problem

In Malaysia, a Judge shall incline to equality in division of asset between spouses, which can sometimes lead to unsatisfactory consequences.

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While equal division of assets is meant to ensure fairness, it can also lead to drawbacks that adversely impact both spouses. One of the most significant drawbacks that can arise with equal division of assets is the order of selling of property during a less favourable market condition. If the market is down, the sale of property can result in significant losses for both parties, and in some cases, the sale may not even cover the outstanding mortgage. This can lead to further financial problems, especially for the spouse who may have to find new accommodation or pay rent while waiting for the division of assets to be resolved.

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Selling of shares at a loss is another possible drawback of equal division of assets. If one spouse has invested in shares that have decreased in value, both parties will suffer the financial consequences. In some cases, selling the shares at a loss may be the only option, which can be frustrating for the spouse who may have wanted to hold onto the investment and wait for the market to improve.

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Other drawbacks of equal division of assets in a divorce can include the need to divide personal possessions, such as furniture, art, and jewelry, which can be emotionally challenging. Additionally, in cases where one spouse has a significantly higher income, equal division of assets may not be equitable, as the lower-earning spouse may struggle to maintain their lifestyle after the divorce.

We work closely with our clients to understand their needs and goals to protect what is important to them. Our team's knowledge in understanding the fast-changing landscape of the economy coupled with our in-depth understanding of the law gives our client an advantage in building a solid plan.