When a marriage ends, one of the most difficult questions that follows the painful separation is:
“How will our assets be divided?”
Property, savings, and investments that were once shared in union have now suddenly become the subject of dispute. Understandably, this can be one of the most emotionally charged and complex aspects of a divorce.
In Malaysia, the law provides clear principles to assist the courts in deciding the division of matrimonial assets, and it aims to ensure that both financial and non-financial contributions of both husband and wife are recognized fairly.
In Malaysia, the division of matrimonial property for non-Muslim marriages is governed under Section 76 of the Law Reform (Marriage and Divorce) Act 1976 (LRA).
What Counts as “Matrimonial Property”?
In Malaysia, not every asset owned by a spouse is automatically considered matrimonial property. Generally, in determining whether an asset is a matrimonial property, courts will usually consider the following:
- Whether the property was acquired during the marriage, either jointly or by one party’s sole effort.
- The types of assets such as houses, cars, savings, investments, businesses, or EPF contributions. For EPF contributions, only the portion of the EPF acquired during marriage could be considered a matrimonial asset.1
- Whether the assets and/or items were purchased or improved using resources or efforts of both spouses.
It is to be noted that, assets that were acquired before the marriage, inherited, or received as a gift usually remains personal / shall not be regarded as matrimonial property, unless the other spouse can show that they contributed for the improvement of the assets such as by paying for renovations or maintaining it.2
How the Court divides the matrimonial assets: the Principle of Fairness
Under Section 76 of the LRA, the court divides assets based on what is fair and equitable, not necessarily equal. The law recognises two main categories of property:
(a) Property Acquired by Joint Effort3
If both spouses contributed for the improvement of the assets (financially or through household support), the court will divide the asset in proportions it considers just. In such scenario, the court takes into account of the following: –
- The financial contributions of each spouse
- Non-financial contributions such as caring for the home and children
- Debts incurred for the family’s benefit
- The needs of any minor children
(b) Property Acquired by Sole Effort4
If only one spouse paid for an asset, the other spouse may still receive a share if they have indirectly contributed towards the marriage. For instance, by managing the household and supporting the earning spouse.
Recognising Non-Financial Contributions: Homemakers are recognised!
A key principle under Malaysian law is that homemaking counts. Even if one spouse didn’t earn an income, their efforts in maintaining the household, raising children, and supporting the family are recognised as valuable contribution.5
The courts have consistently affirmed that a marriage is a partnership and not just an economic one. So, whether a spouse contributed money or time, both can be rewarded when assets are divided.
The Principle of Fairness
There’s no fixed formula followed by courts but every case depends on its unique facts.
But generally, courts will aim to reach the principle of fairness as follows, depending on the facts of each case: –
- For jointly acquired property, courts often divide it 50:50 or 60:40, depending on contribution of each party.
- For property acquired by one spouse, the non-acquiring spouse might receive 10%–30%, reflecting their indirect contribution.6 7
- If there are minor children, the parent with custody may receive a larger share to provide stability and housing in raising the children.
In short — fairness, not equality, is the key principle.
How do I prove my Contribution in my marriage?
Yes, you can prove your contribution in your marriage by producing relevant evidence that supports your claim such as: –
- Bank statements, receipts, or proof of payments (loan instalments, renovation costs, etc.);
- Testimonies showing your role in caring for the home or children;
- Records of joint accounts or shared responsibilities.
Even without financial proof, your non-financial efforts8 can still be recognised through the duration of marriage, credible statements or supporting witnesses.
Conclusion
Dividing the matrimonial pie can be emotional, but understanding how the law works helps you approach it with clarity and fairness. Malaysian courts recognise that both partners contribute, i.e., one may provide financially, while the other provides stability, care, and support at home. Both efforts are valued.
At the end of the day, the goal is simple: to ensure that each spouse receives a fair share of what they helped build together.
Need Legal Guidance?
Every divorce is unique, and so is every family’s story.
If you’re going through a separation or want to understand your rights to matrimonial property, our firm can guide you through the process — with clarity, compassion, and expertise.
- Chee Kok Choon v Sern Kuang Eng [2005] 4 MLJ 461 ↩︎
- Section 76 (5) of Law Reform (Marriage and Divorce) Act 1976* ↩︎
- Section 76 (1) of Law Reform (Marriage and Divorce) Act 1976 ↩︎
- Section 76 (3) of Law Reform (Marriage and Divorce) Act 1976 ↩︎
- Section 76(2)(aa) of the LRA 1976. ↩︎
- Loke Sow Leng v Yap Eng Kee [2004] MLJU 290 ↩︎
- Shireen a/p Chelliah Thiruchelvam v Kanagasingam a/l Kandiah [2012] 7 MLJ 315 ↩︎
- Owen Koh Tat Gin v Diana Lee Cheng See [2021] 11 MLJ 20 ↩︎