Tuesday, March 6, 2012

HDB debarment period waived for divorcees with children

Divorcees with full custody of all their children will no longer be barred for five years from buying a second subsidised flat from the HDB.

Khaw Boon Wan (pictured), Singapore's Minister for National Development, also revealed that divorcees are no longer required to obtain prior consent from their ex-spouses to surrender their right to a subsidised flat.

However, an ex-spouse with no children is still subject to the five-year debarment period, he said.

Mr Khaw made the announcement in reply to a question from Lee Bee Wah, MP of Nee Soon GRC, who asked if the HDB will consider reviewing regulations that are obsolete, like requiring divorcees to submit a letter of prior consent from their ex-spouse.

He noted that this rule was put in place to prevent couples from gaming the system.

He explained that there were cases where couples filed for divorce and split custody of the children in order for them to qualify for two subsidised flats.

“It was (an) abuse. They were never seriously divorced. They just wanted to take advantage of these two subsidised flats, and they remained married. This was an old case that prompted this policy,” he said.

Hence, the government implemented a rule that allowed only one divorcee to buy a subsidised flat within the five-year period, on condition that the other spouse gives up his or her right to do so. However, many MPs noted that it was not easy to get the consent of the ex-spouse.

Mr Khaw added that the HDB will also review if the five-year debarment period is too long.

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