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TIC v TID [2018] SGCA 75
Generally, when a property is transferred from one spouse to another, the eventual owner should bear mortgage and tax payments during the period between the date of the court order and the date of completion.
Date of Decision: 08 November 2018
08 November 2018
Outcome: Appeal dismissed
Facts
1 The Family Court (whose decision was affirmed by the Family Division of the High Court) gave the Wife the option of taking over the Husband’s share of the property upon payment of a fixed sum. The Wife confirmed that she wanted to take over the Husband’s share of the property. The Family Division of the High Court ordered the Wife to be solely liable for the ongoing liabilities during the period between the date of the court order and the date of completion. The Wife appealed.
Court’s Decision:
2 The key factor in relation to mortgage payments is that the eventual owner of the property is the sole beneficiary of any payments made towards the outstanding mortgage during the period between the date of the court order and the date of completion. It is thus fair that the eventual owner bears the payments during the interim period. Nevertheless, this is only a prima facie position that can be displaced in the appropriate circumstances. Such situations include, but are not limited to, instances where it would be unjust to order the eventual owner to bear the ongoing liabilities, having regard to the distribution of the other matrimonial assets or the ability of the eventual owner to bear such liabilities: at [9] and [20].
3 For property tax payments, the prima facie position is that such payments should be borne by the party who should be taken to be the owner of the property, subject to the power of the court to make a contrary order if the circumstances so require: at [21].
4 The Court of Appeal therefore affirmed the decision of the Family Division of the High Court.
This summary is provided to assist the public to have a better understanding of the Court’s judgment. It is not intended to be a substitute for the reasons of the Court. All numbers in bold font and square brackets refer to the corresponding paragraph numbers in the Court’s judgment.