Decoupling is a property strategy used by married couples in Singapore to structure their property ownership in a way that allows one spouse to acquire a second property without triggering ABSD.
How Decoupling Works
When a couple jointly owns a property, both names are on the title — meaning each individual is counted as owning a property. Decoupling involves one spouse transferring their share of the existing property to the other, leaving the first spouse as sole owner of the original property. The transferring spouse can then purchase a second property as a 'first-time buyer,' with no ABSD.
The Costs of Decoupling
Buyer's Stamp Duty applies on the value of the share transferred. Legal fees apply. And a new bank loan arrangement may be needed. These costs need to be weighed against the ABSD savings from the second purchase.
The Risks
The primary risk is that decoupling involves one spouse owning the original property solely. If the relationship changes, the sole owner holds 100% of the asset. This conversation should happen with a lawyer, not just a property agent.