Certain HDB flats are subject to a Minimum Occupation Period before they can be sold. (See here and here.) Because of this, sometimes couples prefer to separate and later divorce only after the MOP has expired (instead of divorcing immediately and surrender the HDB flat at a loss).
The parties can sign a Separation Deed that states how they are to divide the flat when the divorce later. But, is this safe? What if your spouse later applies to Court to ask for more than what was agreed in the Separation Deed?
In the case of Wong Kien Keong v Khoo Hoon Eng (See here and here.), the couple signed a Separation Deed. Under this agreement, the wife would get a certain share of the assets.
However, she later applied to Court to set aside (cancel) the Separation Deed. Her lawyer argued that she was coerced (forced), abused and/or threatened into signing the agreement. Her lawyer also argued that she was suffering from depression at the time such that she did not fully understand the consequences and risks of signing the
The Court after hearing both sides ruled against the wife and rejected all the above arguments and dismissed her application to set aside (cancel) the Separation Deed.
Under the agreement, the wife was supposed to get 34
Thus, it can be seen that even though the Separation Deed was found to be valid and binding, the Court still exercised its power to increase the wife's share of the assets.
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