Lim Choi Ming Partner KhattarWong Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to lorna@sph.com.sg

As far as I know, whole life policies also have surrender values, but these policies are not categorised as matrimonial assets.

Could you please answer the following questions?

(1) Does the single premium paid towards an annuity in cash - not with the minimum sum allocated under the Central Provident Fund (CPF) - form part of a couple's matrimonial assets if the policy holder has not started receiving monthly payouts from the annuity?

(2) If the policy holder has already started receiving monthly payouts from the annuity, and the annuity (purchased with cash) can be terminated and has a surrender value, does the surrender value form part of the couple's matrimonial assets?

(3) Would you be able to provide a comprehensive list of items that are categorised as matrimonial assets?

A STRICTLY speaking, a single cash premium paid towards an annuity does not form part of the pool of matrimonial assets because it no longer exists as a cash asset. However, the surrender value of the policy is still a matrimonial asset.

At the end of the day, the single cash premium may not be available for distribution, but that does not mean it has disappeared from the equation. It has been converted into another kind of asset - an annuity - the surrender value of which is divisible as it does form part of a matrimonial asset. This is probably what your sister's lawyer meant.

If the monthly payouts have started, then they would be taken as a form of income for the husband, and the court would consider the monthly payments he receives from the policies as a factor when deciding maintenance for the wife.

To answer your second question: Yes, the surrender value of the annuity does form part of a couple's matrimonial assets.

As for your third question, it is not possible to provide a comprehensive list of matrimonial assets, as there is no magic formula that can be applied here.

By definition, a matrimonial asset is any asset that is acquired during the marriage. It would be impossible to provide an exhaustive list of what comprise such an asset, which could take the form of cash, balances in savings or fixed deposit accounts, items purchased with cash, jewellery, property, shares, CPF monies, retrenchment monies, insurance proceeds, or even share options that have a value only when they are exercised.

As long as the assets are acquired during the marriage, they are considered matrimonial assets. Essentially, the court would have to weigh each asset in accordance with the facts of the case. Your lawyer will handle this aspect when presenting your sister's case in court.