When a non-Muslim couple in Malaysia decides to divorce, one of the key legal issues is the division of matrimonial assets. In other words, how the couple’s property, savings, and other assets are divided between them. For non-Muslims, the rules for asset division are governed by the Law Reform (Marriage and Divorce) Act 1976 (LRA 1976).

What Are Division of Matrimonial Assets in Malaysia?

Matrimonial assets generally include all property acquired during the marriage, whether jointly or in one spouse’s name. These can include:

• The family home
• Cars and vehicles
• Joint bank accounts
• Savings and investments
• Business shares or interests
• Furniture, household items, and valuable possessions

Even if the asset is registered under one spouse’s name, it may still be considered matrimonial property if it was acquired by either party during the marriage, or contributed to by the other party indirectly.

Division of Matrimonial Assets Malaysia

The division of matrimonial assets for non-Muslims is guided by Section 76 of the Law Reform (Marriage and Divorce) Act 1976. The law sets out how assets should be divided based on the following principles:

Section 76(1) & (2): Property Acquired Jointly

If the property was acquired by the joint efforts of both spouses, the court will divide it in proportions that are just and equitable, taking into account:

• Financial contributions
• Non-financial contributions (such as managing the home or caring for children)
• Debts owing by either party
• The duration of the marriage
• The needs of any children
• The extent of contributions made by each party

Not All Property Is Automatically Shared

Not every asset will be considered matrimonial property. For example, the following may not be subject to division:

• Inheritance or gifts received personally by one spouse (unless used for the family)
• Property acquired before marriage and not used by the family
• Assets kept entirely separate with no contribution from the other spouse

However, if a non-matrimonial asset has been used for the benefit of the family, or the other spouse has helped maintain or improve it, the court may still consider it for division.

The division of matrimonial assets in a Malaysian civil divorce is not simply about who paid for. It’s about ensuring fairness based on both financial and non-financial contributions. Need legal advice on asset division? Contact our Malaysian divorce lawyers today for a consultation.