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Jun 28 2024

Pride Month aims to raise awareness around equality and celebrating our LGBTQIA+ people and communities and to raise awareness of issues that affect them and steer conversation and action towards positive change. Recently in celebration of Pride Month, ten LGBTQIA+ couples tied the knot in a Hong Kong Hotel, a remarkable occurrence for a city in which same-sex marriage is not legalised. In order to achieve legal recognition for the marriage, the ten couples legally married registering their marriages online through a process recognised by the United States.

Marriage equality, or the lack thereof, is often under the spotlight in Hong Kong and for good reason. In Hong Kong the Constitutional right to marry is enshrined in Article 37 of the Basic Law, which states that “the freedom of marriage of Hong Kong residents shall be protected by law”. However, in the case  MK v Government of HKSAR [2019] HKCFI 2518the court upheld the HKSAR Government’s policy such that same sex couples do not have a constitutional right to marry under the Basic Law and denied the recognition of their relationships with the provision of an alternative legal framework in Hong Kong.

Despite that there is still no legal recognition for same-sex couples in Hong Kong, there has been significant strides towards marriage equality in the recent years.

1. Progress So Far

In 2023, the Hong Kong Court of Final Appeal (“CFA”) handed down its judgment in Sham Tsz Kit v Secretary for Justice [2023] HKCFA 28. This judgment was widely regarded as a partial victory for LGBTQI+ rights in Hong Kong. While the CFA still declined to recognise same-sex marriages, it acknowledged the necessity of establishing an alternative legal framework to address the basic social requirements of same-sex partnerships.

Effectively, the CFA ordered the HKSAR Government to establish a legal framework that would recognise same-sex partnerships and address crucial rights such as access to hospitals, inheritance, and tax benefits. This development signifies a positive step forward in ensuring equal treatment and protection for same-sex couples in Hong Kong.

Furthermore, noteworthy progress was made as the majority of the CFA declared that the absence of an alternative legal framework for the recognition of same-sex partnerships constitutes a violation of the HKSAR Government’s positive duty under Article 14 of the Hong Kong Bill of Rights. 

2. What’s Next?

While progress is encouraging, there’s more work to be done. Hong Kong Marriage Equality, an NGO group, considers that the path to achieving marriage for same sex couples in Hong Kong to be three-pronged: –

  • Legislative Empowerment Advocate for legal reforms and empower legislators and policymakers to prioritise enacting change. Marriage equality should be placed high on their agenda to ensure that the rights and recognition of LGBTQIA+  individuals are fully protected under the law. This includes efforts to amend existing legislation and enact new laws that support equal rights for all couples, regardless of their sexual orientation.
  • Community Engagement: Mobilise the LGBTQIA+ community and allies to create a strong and unified voice. Encourage open dialogues and discussions across different districts and communities in Hong Kong to foster understanding and empathy. It is essential to engage with stakeholders who may have previously considered the topic of marriage equality as taboo or unfamiliar. By educating and raising awareness, we can challenge misconceptions and promote inclusivity.
  • Broaden Support: Build a coalition of key constituencies within society to amplify the call for marriage equality. Voices from various sectors such as business, education, healthcare, and beyond can play a vital role in advocating for equal rights. Engaging these stakeholders, including influential individuals and organizations, will help create a broader support network that can effectively push for legislative changes and societal acceptance.

According to the latest poll by the Chinese University of Hong Kong, 49% of the respondents supported marriage equality. While this is an improvement and a step forward for LGBTQIA+  communities, it takes everyone in society to pay more attention and to do much more work in order to create a fully inclusive and equal rights platform for the LGBTQIA+ community.

3. Celebrating Pride

We have witnessed remarkable progress in both legal reforms and shifts in social attitudes towards LGBTQIA+  people in Hong Kong. However, it is evident that legislation and protections still lag behind global norms for the LGBTQIA+ community. While the recent positive developments in legal cases are encouraging, the specific legal protections for same-sex partnerships remain uncertain.

Moving forward, it is crucial to focus on raising legal awareness about the LGBTQIA+  community and advocating for legal reforms. By fostering understanding and promoting inclusivity, we can strive towards a more equitable society that provides equal rights and protections to all individuals, regardless of their sexual or gender orientation. Continued efforts and advocacy are essential to ensure that Hong Kong progresses towards a future where LGBTQIA+  individuals enjoy the same rights and opportunities as their heterosexual counterparts.

 

Joanne Brown and Kathy Siu

If you want to know more about the content of this article, please contact:

Joanne Brown

Partner | Email

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. This article was last updated on 28 June 2024.

 

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Jun 07 2024

The decision in the case of Standish v Standish, Court of Appeal, England & Wales, concerns a high-profile divorce settlement and primarily concerns pre-marital contributions to the asset pool. In an unprecedented move, the Court of Appeal reduced the award to the Wife by GBP20 million because the Court of First Instance had not adequately reflected the pre-marital contributions of the Husband.  The decision sheds light on the intricacies of asset division and the significance of pre-marital wealth in high-net-worth divorce cases.  

Background

The was the Appellant’s (“Wife”) appeal and the Respondent’s (“Husband”) cross-appeal from a financial remedy order (“the Order”) made on 27 October 2022 (ARQ v YAQ[2022] EWFC 128, [2022] 4 WLR 112).

The Husband and Wife began their relationship in 2003 and married in 2005. The marriage ended in 2020. When the parties married, the Husband had accumulated significant (pre-marital) wealth through financial rewards from his employment in the form of investments and properties before retiring in 2007.

The Wife’s resources at the start of the marriage comprised a property, some funds in bank accounts and an inheritance amount. Compared to the Husband’s pre-marital wealth scale, the Wife’s assets were modest.

This decision relates most specifically to two financial events in 2017 that were part of tax reduction schemes. The first involved a transfer from the Husband’s sole name into the Wife’s sole name of investment funds worth approximately £77 million (“the 2017 Assets”). The second involved the Wife being issued shares in a farming business, namely Ardenside Angus.

The Judge, at First Instance, found that the total wealth of the couple was £132 million, of which he determined that £112 million was matrimonial property, including the 2017 Assets and Ardenside Angus. As a result of these transactions, the Order states that these assets had been matrimonialised and were, accordingly, subject to the sharing principle.

The Judge decided there should be an unequal division of the matrimonial property because the 2017 Assets had only been matrimonialised towards the end of the marriage. Accordingly, the Judge awarded the Husband £87 million (66%) and the Wife £45 million (34%) of the parties’ total wealth.

The appeals concern the appropriate application of the sharing principle and how the court identifies assets to which it applies.

Grounds of Appeal     

For different reasons, both parties contended that the effect of the division by the Judge failed to apply the sharing principle correctly.

The Wife advanced two grounds of appeal. According to the Wife, the Judge had been wrong to decide that the 2017 Assets had been matrimonialised. Title was the critical factor and the Judge should have decided that the 2017 Assets (and the Wife’s shares in Ardenside Angus) were her separate or non-marital property. They were not, therefore, subject to the sharing principle save for the Wife conceding that they, with the balance of the marital property, should be divided equally between parties because this was a ‘partnership marriage’. The Court of Appeal disregarded the latter argument.

The Husband, by cross-appeal, also contended that the Judge should not have applied the sharing principle to the 2017 Assets or to the Ardenside Angus. This was because they were not matrimonial property, but both before and after the transfers into the Wife’s name, they represented the Husband’s pre-marital wealth.

The majority of the parties’ wealth, according to the Husband, including the 2017 Assets, continued to be the product of the Husband’s pre-martial endeavour rather than the product of the marital endeavour and therefore was not subject to the sharing principle, which applies only to the latter.

Findings

The Court of Appeal (“CA”) concluded that the source of an asset is the critical factor and not the title. The sharing principle is founded or based on each party, in accordance with the objectives of fairness, equality and non-discrimination, being entitled to an equal share of their matrimonial property.

With regards to the sharing principle, the CA referred to Miller v Miller [2006] UKHL 24, which indicated the importance of the difference of source between “(1) property acquired during the marriage otherwise than by inheritance or gift (matrimonial property) and (2) other property. The former is the financial product of the parties’ common endeavour; the latter is not”. Lady Hale noted at [148], however, that the “importance of the source of the assets will diminish over time” (also followed in K v L (Ancillary Relief: Inherited Wealth) [2011] EWCA Civ 550.

When counsel for the Wife was asked to explain the relationship between the source of an asset and ownership for the application of the sharing principle, they failed to provide a clear answer. They argued that a balance must be struck but submitted that ownership is ‘determinative’ because this indicates the source of the asset. The CA rejected the submission that the 2017 Assets and Arendenside Angus became the Wife’s non-marital property as discriminatory and unfair. The CA concluded that the source reflects when and how an asset was generated and not the title. The Wife’s title, therefore, did not prevent the CA from classifying those assets as pre-marital wealth.

The CA quoted a passage from Hart v Hart [2017] EWCA Civ 1306 that provides a distinction between matrimonial and non-matrimonial property:

“Non-matrimonial property can, therefore, be broadly defined in the negative, namely as being assets (or that part of the value of an asset) which are not the financial product of or generated by the parties’ endeavours during the marriage. Examples usually given are assets owned by one spouse before the marriage and assets which have been inherited or otherwise given to a spouse from, typically, a relative of theirs during the marriage.”

Both parties raised the issue of the applicability of matrimonialisation. The CA stated that it should only be narrowly applied to prevent parties from misusing it in a manner that undermines the sharing of property generated by parties’ endeavours during the marriage. It would be incorrect to state, however, that property which has a non-marital source can never be subject to the sharing principle, as there may be situations when fairness justifies this. This also reflects Lady Hale’s statement in Miller that “the importance of the non-marital source of the assets will diminish over time”.  Referring to Hart, when a clear dividing line between matrimonial and non-matrimonial property is absent, the court’s discretionary powers become applicable.

The Wife’s appeal was dismissed, and the Husband’s appeal was allowed. The Judge’s application of the sharing principle was flawed and had resulted in an “unjustified division of the family’s wealth in the Wife’s favour.”

The CA considered a careful analysis of the various assets and concluded that the martial property was £50.48 million. It went on to finally concluded that a fair application of the sharing principle would have therefore resulted in the Wife receiving wealth of approximately £25 million in place of the Judge’s award of £45 million.

The CA concluded that the matter be remitted for reconsideration. The Judge below did not undertake the needs assessment as it was clear that the Wife “can live very well on a sum of £45 million” (ARQ v YAQat [85]). As to whether the Wife will proceed with a cross-check against her needs assessment, this remains to be seen.

The case highlights the complexities of determining the appropriate award in high-net-worth divorces and the importance of properly accounting for pre-marital wealth. The judgment can be found here Anna Catherine Standish v Clive Thomas Standish – Find case law – The National Archives

 

Joanne Brown

If you want to know more about the content of this article, please contact:

Joanne Brown

Partner | Email

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. This article was last updated on 07 June 2024.

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Apr 26 2024

Introduction

An occurrence of international child abduction evokes negative emotions and strong condemnation. The unauthorised removal of a child from the loving care of a parent across international lines is obviously unacceptable. Equally so, is the retention of a child abroad without mutual parental consent. 

In 1980, the Convention on the Civil Aspects of International Child Abduction (the ‘1980 Hague Child Abduction Convention’) was first introduced and unanimously approved by all contracting states present at the 14th Session of the Hague Conference on Private International Law on 24 October 1980 . As of 2022, there are 103 contracting parties, including Hong Kong.  The 1980 Hague Child Abduction Convention’s purpose is to provide a mechanism “desiring to protect children internationally from the harmful effects of their wrongful removal or retention [1]. by providing a prompt procedure to secure their return and / or to secure rights of access. Such wrongful removals or retentions are generally known as ‘Hague abductions’.

By nature, Hague abduction cases are highly emotional and stressful for parents – especially for the left behind parent.  For a child, regardless of whether they are aware of the specific legal circumstances or consequences, their removal or retention by a parent will undoubtedly cause confusion and instability. Some cases can create long-term damaging effects including psychological trauma and distress, loss of contact with a left behind parent , loss of social, family and education systems and support systems, and even the potential jeopardy of one’s identity.

The 1980 Hague Child Abduction Convention has served its purpose well since its inception and provided a reliable framework for relevant contracting parties to implement return applications via their central authorities, which, once accepted, are then referred to a judicial authority for a determination. Time is of the essence and under the1980 Hague Child Abduction Convention, the application and hearings are required to be conducted expeditiously and completed within 6 weeks. The defences to an application for return are limited.  It is not an opportunity for parents to be heard on other factors or arrangements in relation to the child, as these matters are more appropriately dealt with by the domestic court.

For more information on 1980 Hague Child Abduction Convention and child abduction cases in Hong Kong, please see our article.

State of Play in 2021  

Recent statistics from a global report dated September 2023 (available at this link)on international child abduction make for interesting reading[2].  

A brief summary:-

  • In 2021, at least 2,771 children were involved in 2,180 return applications globally.
  • Of this number 88% of the taking persons were a ‘primary carer” or ‘joint primary carer’.
  • Mothers were the largest group of parents who took children, followed by fathers.
  • 38% of return applications were ultimately decided by a court.
  • 16% resulted in voluntary returns.
  • The total number of days taken to resolve the applications had increased from 164 days in 2015 to 207 days in 2021.
  • Crucially, 22% of the applications received were resolved by agreement[3].

Mediation

Many parents, when seeking legal advice, either to bring a case of child abduction or defend one, can’t possibly fathom how a case can be resolved without a judicial determination of right and wrong. Usually, unpleasant and damaging allegations are made about the left behind parent or the domestic jurisdiction. Matters become acrimonious. However, that does not always have to be the case. Dispute resolution methods, such as mediation can be successful in resolving the dispute.

The 1980 Hague Child Abduction Convention itself provided for the prospect of mediation by Article 7, which requires central authorities not only to secure voluntary return but to also “to bring about an amicable resolution of the case.” In 2012, the advisory Guide to Good Practice Child Abduction Convention: Part V – Mediation (available at this link) was produced in multiple languages aiming to promote the use of agreements and a good practice guide in the use of mediation in cross border disputes. Other options are of course available, however, for the purposes of this article we focus on mediation.

Benefits of mediation in Hague Abduction Cases

The Family Team at Tanner De Witt are firm believers in constructive and practical approaches to resolution which often include mediation.  Mediation offers a plethora of benefits, including:-

  • Flexibility and tailored solutions: Mediation empowers the parties to take ownership of the process and outcomes and generate options which work for them and their specific situation. 
  • Broader Scope: Mediation is not limited to issues within the court’s jurisdiction, whereas abduction proceedings is inherently limited. It allows parents to address a broader range of topics related to the child’s interests, including for example custody and care and control for the child, their separation and/or divorce arrangements, as well as anything else they wish to discuss. This is especially helpful in resolving long-standing family disputes and preventing further disputes in the domestic jurisdiction.
  • Preserving the co-parental relationship: It may seem contradictory to suggest that there is a co-parental relationship to be salvaged after a Hague abduction. However, the reality is that in most cases there will remain a co-parenting relationship despite this difficult situation. Mediation gives parents the opportunity to work together to come to mutually agreed solutions, thereby eliminating the notion of a ‘winner’ versus a ‘loser’ and placing the child at the very centre of discussions.
  • Cost-effectiveness: Generally, mediation tends to be more cost-effective than court proceedings, which can include multiple court attendance by legal representatives and costs incurred to draft legal documents and evidence.

Even if an immediate agreement is not reached through mediation, there can still be substantial benefits for the parents and for the child(ren).  Mediation can help parents manage short-term issues such as access or financial arrangements pending a determination. Parents may also propose and/or agree protective measures in the state of habitual residence should return be ordered. Parents may also learn the essential skills of active listening and effective dialogue, enabling them to engage in constructive conversations. With these skills, parents can navigate future disagreements more effectively, hopefully leading to a greater understanding of each other’s perspectives.

Two recent case studies

  • United States / England

American singer Joe Jonas and British actress Sophie Turner hit headlines across the globe when their private affairs turned public in late September in 2023.  Their separation, followed swiftly by divorce proceedings initiated by Jonas in the United States and Hague abduction proceedings issued by Turner for wrongful retention of their children in the USA, was covered by celebrity glossies and international news organisations alike.

Jonas and Turner agreed to a 4-day mediation which, thankfully, led to an interim and private custody agreement in relation to the children’s arrangements – preventing further scrutiny and speculation by the press and an ugly trial. 

(2) Hong Kong/Japan: Hong Kong case of OM v WX [2023] HKCFI 2688

Our family team, instructing Barrister Joshua Baker, successfully assisted a father to return to his home country with his son, who had been retained in Hong Kong by his mother following a trip to the city.  Through mediation, the father and the mother came to agreements on inter alia (i) the child’s return to Japan and (ii) access and visitation for the mother who wished to stay in Hong Kong.

The use of mediation allowed the parties to explore their stated concerns and create a solution which worked for each of them individually, without arguing the facts before the Court. The Decision reflecting the agreement can be found at this link.

Mediator Perspectives

We spoke to experienced Hague mediators Sala Sihombing and Kay Chan for their perspectives on the use of mediation in Hague abduction cases.

  • Is mediating a Hague abduction case different to a ‘standard’ children’s arrangements case?

The first principle is to always keep the focus on children’s best interests, regardless of Hague or not. However, we speak in mediation about the parties negotiating in the shadow of the law.  In Hague cases, the legal aspects of the case can seem like a living, breathing presence in the room.  Whilst the child focus is the same, there is often a multiplicity of legal and even criminal cases surrounding the Hague case itself which can make it difficult for parents to focus on their children. #SalaSihombing

  •  How do you approach a Hague Abduction case as a mediator?

I usually first try to understand the background of the family including the country of origin, how they communicate with each other and their views on the child’s upbringing. I always want to have intake sessions on a separate day before the joint session so parents would get some time between the intake and joint session to think and better formulate their concerns and do necessary preparations, like research, for the joint session. #KayChan

  • What should parents consider before mediating a Hague abduction case?

I think the timing for mediation can be critical.  I have worked with parents who had so many outstanding cases that finding a through-line was extremely difficult. I would ask any parent to consider the impact on their children of a court battle. Regardless of the parents’ perceptions and beliefs, children typically wish to maintain a relationship with each of their parents.  Helping children to weather this storm can be difficult when it seems like everything has fallen apart. Generally, abduction has resulted from a crisis of some kind between the parents. When working with parents they need to work to step out of crisis mode and shift to decision-making in the interests of their children. #SalaSihombing

  • Would you encourage parents to consider mediation for a Hague abduction case?

Mediation is highly recommended for Hague abduction cases because it really allows parents to move past the past bad feelings and focus on the future upbringing of the children. The communication done through the mediator can also take some of the negative emotions out of the exchanges between the parents which can in turn facilitate more productive communications. #KayChan

  • Do you have any interesting experiences in particular with mediating Hague abduction cases?

I have worked on cases where the acrimony from the court-resolved Hague cases has destroyed the ability of the parents to interact in a constructive manner.  However, I will never forget working with parents where the children had been returned to Hong Kong and the parents were mediating their divorce. This was the first time they had seen each other and without any warning, the parent who abducted the children apologised.  It was an emotional apology which demonstrated an understanding of the exact nature of the betrayal given this family’s situation. Spontaneous apologies can happen, however what happened next shocked me. The left behind parent apologised and acknowledged that their behaviour had contributed to the crisis and the abduction. We sat in the mediation in silence for some time as the parents processed what each had said to the other. #SalaSihombing

Conclusion

Ultimately, mediation can be explored in most cases arising out of alleged removal or retention of children. An amicable resolution, with the child’s interests considered, serves all parties involved and prevents acrimonious, drawn out and potentially expensive proceedings.

Joanne Brown and Phoebe Chan

The above is not intended to be relied on as legal advice and specific legal advice should be sought at all times in relation to the above.

For more information on the 1980 Hague Child Abduction Convention and its effects on you or your family, please contact:

Joanne Brown
Partner | [email protected]

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.

[1] Preamble to the 1980 Hague Child Abduction Convention

[2] Global Report – Statistical study of application in 2021 under the 1980 Child Abduction Convention Prel. Doc No 19A of September 2023

[3] These figures applied largely to common law jurisdictions and thus the overall number may be higher. The study does not indicate how agreement was reached. Nevertheless, it is safe to say that approximately a quarter of these cases were ultimately resolved by the parents without a court’s assistance. Point being, alternate dispute resolution is possible in even the most difficult of cases and can lead to resolution.

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Apr 08 2024

In Hong Kong, the right to family life is enshrined in Article 19 of the Bill of Rights Ordinance (Cap. 383), which recognises family as “the natural and fundamental group unit of society”. Further, Article 14 protects one’s rights from arbitrary or unlawful interference with family or home. Article 37 of the Basic Law protects our rights to “raise a family freely”. In the context of adoption, a child’s parental relationship can be a central point of discussion – which is reflected in the legal framework, for instance, both parents’ consent is required before an adoption order can be made. Significance attached to sibling relationships, despite strong research that they are in fact, the most enduring relationships in most people’s lives – is rarely extensively considered by Hong Kong courts – until now. In Director of Social Welfare v LPK [2024] HKCFI 421, the Court had to grapple with a rather unusual case involving 7 children born to the same mother.

In LPK, the Director of Social Welfare applied for an order to declare two infants, respectively the 6th and 7th child born to two non-married parents with a history of drug use, free for adoption and to dispense with the consent of the Defendant mother. The mother and the putative father have 7 children together but none of them are under parents’ care. The first five have been freed for adoption.

While the Honourable Justice Au-Yeung was satisfied that all statutory requirements were met, Her Ladyship was mindful that the Court should not merely “rubber stamp” freeing applications, and expressed her concerns as to the human rights of the two siblings. In fact, in her Decision in two earlier cases relating to older siblings born to the same parents, Her Ladyship surmised that the right to family life may be engaged, as, despite being abandoned or neglected by their parents, the children may very well be willing and able to build their own families. The Court restated similar concerns here as to “whether children born of the same mother have had access to their siblings, at least before adoption was carried out, and their rights to a family that society should protect.

Her Ladyship went on to direct that these issues must be considered before the Court can decide whether to make a freeing order. In this regard, the Official Solicitor was required to file a report to address questions relating to human rights of the children and possible minimum measures to safeguard such rights.

It is an established principle in child protection practice that siblings should, ideally, be kept together. The Guidelines for the Alternative Care of Children released by the United Nations in 2010 state that:

Siblings with existing bonds should be in principle not be separated by placements in alternative care unless there is a clear risk of abuse or other justification in the best interests of the child.”

The importance of sibling relationships was considered by the UK Court of Appeal in Re B (a Child) (Sibling Relationship: Placement for Adoption) [2018] EWCA Civ 20. The proceedings related to a little girl, B, who was born in the spring of 2016. B had an elder full brother, H, who was born in 2015 and was adopted in 2016. The essential issue was whether B should be placed with H’s adoptive parents or with her father’s cousin. In favoring the former, one of the most important factors that the trial judge took into account was that B could be brought up with a full sibling, meaning that “she would never be alone, she would have the shared experiences of being brought up in the same household, which will promote identity and self-esteem.” The Court of Appeal considered the trial judge’s conclusion that B’s future relationship with H “tipped the balance and was determinative of the outcome”, and was “securely founded in the evidence.”

The LPK Decision is a welcome development to bring into the forefront the crucial human rights considerations involved within adoption and alternative care solutions.

Joanne Brown and Phoebe Chan

If you want to know more about the content of this article, please contact:

Joanne Brown

Partner | [email protected]

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. This article was last updated on 08 April 2024.

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Jan 22 2024

At the start of a New Year, parents may be looking to enjoy overseas travel with their children, especially during their long school holidays. It is important to plan ahead and seek agreement with your co-parent to prevent any travel disappointments, delays, or cancellation costs. As a general principle, parents should co-operate with one another and agree overseas trips for their children. If there is agreement to travel, there should be provision of contact information and arrangements for contact with the non-travelling parent, and an itinerary which usually includes travel information and where the children will be staying. 

The Hong Kong Family Court has jurisdiction over issues of custody and access until the child turns 18 when parties are going through a divorce and proceedings have been commenced. This includes arrangements relating to holiday travel if parents are not agreed.  

Upon dealing with matters of custody and access, the Court customarily issues a standard direction at an early stage that the children not be removed from Hong Kong without leave of the Court until the children reach 18 years of age, but if either parent gives a general undertaking to the Court to return the children, and the other parent’s written consent is obtained, that parent may remove the children from Hong Kong for the agreed period of time.  

Sometimes, in cases where there is concern a child may be removed without permission, this order will be provided to the Hong Kong Immigration Department and a ‘stop order’ is issued to prevent travel without a court order.  

Even if there are no Court proceedings or order prohibiting removal of the children, it is necessary to obtain the other parent’s written consent before taking the children on holiday. Not doing so may attract criticism from the Court and may even result in an application made by the non-travelling parent to return the children to Hong Kong, or even allegations of abduction. 

If parties cannot agree on arrangement for overseas travel, then the travelling parent will need to take out an application with the Court. This is known as a Temporary Removal application. 

Court application 

When deciding whether to grant leave for a Temporary Removal application, the Court will consider the best interests of the children through a basket of factors. This includes inter alia the travel period, travel destination, reason for travel, the travelling parent’s Hong Kong ties and the risk of non-return of the child/children to Hong Kong. The Court will weigh the benefits of travel to the children and the risk of non-return.  

VDR, BA and TOY FCMP 171 / 2020 [2022] HKFC 260   

In this case, handled by the Tanner De Witt team, the Father wished to take the two children on holiday to visit family in Europe. The Mother resisted the application and cited concerns around the Father’s credibility, employment status and his links and ties to Hong Kong i.e. that he would not return with the children to Hong Kong. She also made complaints about loans allegedly made to the Father and citing a failure to fail monthly allowance. She required these sums to be paid before she would agree to the Father’s travel plans. She allegedly feared that the Father would not return to Hong Kong and required several undertakings to be filed by the Father. He was able to produce further evidence in reply to eliminate concerns around return to Hong Kong.  

In his Judgement, His Honour Judge G. Own restates the general principle that the first and paramount consideration in all matters related to children is that their interests are to be secured and well served. His Honour examined the Father’s ties to Hong Kong and stated that a major factor to be considered in such cases is whether the country to which the children will travel is a Hague Convention contracting state. This will ensure the parties have an avenue to expeditiously deal with any failures or delay in returning the children post removal. The Court also considered previous commendable behaviour and compliance with court orders, his employment status and other ties to Hong Kong including tenancy and MPF documents. The Court refused to consider the financial concerns and deemed this objection ‘a non-starter’. When considering the Children’s best interests, His Honour found that the children should not be deprived of an opportunity to see family members which was their right, not the parties’. The Father was permitted leave to remove the children.  

Plan early and try to reach agreement 

In the absence of a court order regulating holiday access, it is prudent to begin discussions up to 6 months in advance of the intended travel. As a Court application for Temporary Removal can take considerable time, sometimes 4-6 months, best practice is to consider and discuss holiday plans with the other parent well in advance to see whether the matter can be resolved without going to Court.  If agreement cannot be reached, parents may consider seeking legal advice and / or mediation to reach agreement on appropriate terms. Failing which an application to Court can be made.  

Joanne Brown and Jamie Choy

For specific advice on your situation, please contact:

Joanne Brown
Partner | Email

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.

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Jan 18 2024
Tanner De Witt is delighted that our law firm has achieved consistent recognition in Chambers and Partners Greater China Region Guide 2024. We are honoured to have maintained top-notch rankings for an impressive 14-year stretch. Big congratulations to our exceptional team for earning this well-deserved recognition.

Restructuring & Insolvency: 14 years and 3 lawyers ranked
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Nov 21 2023

Recently, I have been asked if we can obtain a grant of representation based on a will hand-written and executed by the testator but without the formal requirements of having two witnesses signing at the same time.  Incidentally, a decision in the recent case of Choi Cheung Hung v. Leung Fung Ha [2023] HKCFI 2822 provides some insight on the requirements.

In this case, the deceased hand wrote and signed a brief note to say that after her death, she gives all her assets to the plaintiff applicant (“Written Document”).  In addition, on a subsequent date, she had on her phone a note to say effectively the same thing (“Mobile Phone Note”).  The plaintiff applicant in this case was the de facto (but not legally married) husband of the deceased of over 40 years.

The court considered section 5(2) of the Wills Ordinance which provides “A document purporting to embody the testamentary intentions of a deceased person shall, notwithstanding that it has not been executed in accordance with the requirements under subsection (1), be deemed to be duly executed if, upon application, the court is satisfied that there can be no reasonable doubt that the document embodies the testamentary intention of the deceased person.” 

In this case, the court has to be satisfied “beyond reasonable doubt” that the document embodies the testamentary intention of the deceased.  Fortunately for the de facto husband, the facts were clearly in his favour and no other potential beneficiaries under intestacy objected to the application, the court propounded the Written Document as the last will of the Deceased.  Interestingly, the court refrained from deciding whether the electronic file of the Mobile Phone Note can be considered “a document” under section 5(2) and treated the electronic file as supporting the testamentary intention under the Written Document.

For those considering making a will, it is advisable to hire a law firm to draft a will that is properly signed by the testator in the presence of two witnesses who are present simultaneously and attest and sign the will. This approach would make the probate process of such a will more cost-effective than relying on a document like the written one in this case.

Eddie Look

Eddie Look

Partner | [email protected]

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Oct 17 2023

Divorce, an intensely personal affair, extends its ramifications beyond the couple involved, touching the lives of family members and friends alike. This repercussion becomes even more profound when one spouse assumes the role of a trustee for assets or when matrimonial assets are held in trust by a third party. How does a spouse assert a rightful claim on assets held under someone else’s name? And, conversely, how can third parties safeguard their vested interests?

First Came Full and Frank Disclosure

Giving full and frank disclosure is a corner stone to any financial dispute in divorce proceedings. The purpose of this is to ensure that the Court has all the necessary information pertaining to the parties’ financial status before making a decision that will potentially impact both parties and the children for a significant portion of their lives.  Parties undergoing divorce will no doubt be familiar with the pro forma Financial Statement (a.k.a. Form E). Each party will have to complete this 20-odd page document, requiring them to set out all assets that are under their respective sole names, in joint names with others and any asset held under a third party’s name but which the party has an interest in.

Then came the familiar story that the divorcing spouse claims to be holding an asset (e.g. landed property, shares or otherwise) on trust for someone else (say for tax or whatever reasons) OR that the spouse had transferred assets to a third party (say a friend or trustee) shortly before the commencement of the divorce proceedings.

In the latter scenario, a spouse can seek to join the title holder of an asset into the divorce proceedings, so that the Court may properly determine the ownership of the asset for the purposes of the ancillary relief proceedings.

Joinder – Legal Principles

Order 15, rules 6(2) and (3) of the Rules of the High Court (which is also applicable to divorce proceedings in the District Court – to which the Family Court belongs) provides that the Court may on its own motion or on application by a party order that a person be added as a party if:-

‘(i) any person who ought to have been joined as a party or whose presence before the Court is necessary to ensure that all matters in dispute in the cause or matter may be effectually and completely determined and adjudicated upon, or

(ii) any person between whom and any party to the cause or matter there may exist a question or issue arising out of or relating to or connected with any relief or remedy claimed in the cause or matter which in the opinion of the Court it would be just and convenient to determine as between him and that party as well as between the parties to the cause or matter’.

An application for joinder must be supported by affidavit evidence showing the applicant’s interests in the matters in dispute or the question or issue to be determined as between him and any party to the cause of the matter.

Who to join?

Either a party to the existing proceeding can seek to join a third party into the proceedings, or a third party having been served with the requisite Court documents can apply to join the proceedings.

In so far as the former, a party to the existing proceeding is entitled to choose who he/she wishes to be joined into the proceedings. However, there is no rule that a person is automatically joined into the proceedings merely because he is served with the requisite Court documents.[1]

The Court retains the ultimate decision on whether a person is to be joined. In exercising its discretion, the Court will have to consider whether there is (1) a bona fide claim; and (2) a proper question to be tried as between the applicant and the intended party to be joined that is necessary or just and convenient for resolution between them as well as between the existing parties.

At this stage, the court will not scrutinize the applicant’s case, or adjudicate on the disputed facts.  The burden of proof is on the party opposing the joinder.  Once the Court is satisfied that the joinder has a legitimate interest in the outcome of the proceedings, the Court will decide whether an order should be made having regard to: the prejudice to the parties, the stage the action has reached when the order was sought, the delay in making the application and any delay that may be caused should an order be made.[2]

Not all Parties Need to be Joined

Even when a party can be joined in the proceedings, it is not always necessary to have that party joined. Who the title holder of the asset is will to a great extent inform whether a third party should be joined.

In a case where the applicant claims that an asset held in the name of a third party is that of the respondent’s, the third party should be joined. This is because the legal title of the disputed asset would have to be transferred or subject to encumbrance if the Court holds that that asset is a matrimonial asset. 

However, if the respondent is the legal title holder, but says that such asset is beneficially owned by a third party, then the third party should at the very least be notified of the claim so that he/she may decide whether to contest the ownership issue, and if so, apply to be joined as a party to the proceedings.[3] If the third party does not apply to be joined, then he/she shall be bound by the Judgment of the Court.[4]

When to Join?

In UK case of TL v ML [2006] 1 FLR 1263, Mostyn QC siting as Deputy High Court judge gave the following guidance:

36.      …. It is essential in every instance where a dispute arises about the ownership of  property in ancillary relief proceedings between a spouse and a third party, that the following things should happen ordinarily: (i) the third party should be joined to the proceedings at the earliest opportunity; (ii) directions should be given for the issue to be fully pleaded by points of claim and points of defence; (iii) separate witness statements should be directed in relation to the dispute; and(iv) the dispute should be directed to be heard separately as a preliminary issue, before the Financial Dispute Resolution

37.       in this way, the parties will know at an early stage whether or not the property in question falls within the dispositive powers of the Court’.

Practical Considerations

While the above trustee / beneficial owner dynamics happens frequently in domestic settings, it is also not uncommon that parties seek to join professional / institutional trustees to determine the true ownership of assets disposed of prior to divorce proceedings.  In fact, it is also not uncommon that these trustees are located overseas / in offshore jurisdictions.

By way of example, in the case of KCMA v ABC [2019] HKFLR 548 in Hong Kong High Court concerning 2 trusts (namely the Education Trust and the Family Trust), the Hon B Chu J. decided to join the overseas trustee to facilitate enforcement of any Order by the Hong Kong Court. If an overseas trustee fails to comply with a Hong Kong Court Order, a party can seek an order that ‘… the signing of the necessary documents to effect the transfer by some other person appointed by the Court[5]; or apply for a declaration that previous transfers were invalid and of no effect. 

Notwithstanding such enforcement mechanisms available to the Hong Kong Court, the Hon B Chu J. acknowledged whether such order and/or declaration will be recognised by the overseas trustee remains a live issue.

5 Take Aways

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.

For specific advice on your situation, please contact:

Adrian Au
Partner | E-mail


[1] KCMA v ABV [2019] HKFLR 548 [68]

[2] Hong Kong Civil Procedure 2023 Vol 1 [15/6/6]

[3] LLC v LMWA [2019] 2 HKLRD 529

[4] Order 15 Rule 13A(4) of the R.H.C.

[5] KCMA v ABC [2019] HKFLR 548 para 122 – 123

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Sep 05 2023

On 5 September 2023, the Court of Final Appeal in Sham Tsz Kit v Secretary for Justice [2023] HKCFA 28 ruled that the absence of alternative means of legal recognition of same-sex relationships in Hong Kong amounts to a violation of the constitutional right to privacy enshrined in the Hong Kong Bill of Rights. The HKSAR Government is to establish a new alternative legal framework to legally recognise same-sex partnerships to dispel any sense of them belonging to an inferior class of persons. 

Although the Court accepted that the HKSAR Government enjoys a flexible margin of discretion in deciding the rights and obligations under this new legal framework, a declaration was nevertheless made but suspended for 2 years. This imposes a timeline for the HKSAR Government to take steps to comply and establish a new alternative legal framework.

In the same Judgment, the Court ruled that there is no constitutional right to same-sex marriage in Hong Kong, nor is the non-recognition of foreign same-sex marriage a violation of the constitutional rights, as the current legislative framework does not provide such recognition.

The Appellant, Mr. Jimmy Sham, entered into a same-sex marriage in New York in 2013, which is not recognised in Hong Kong. Mr. Sham issued judicial review proceedings in 2018. His application was dismissed by the Court of First Instance and Court of Appeal, but subsequently leave to appeal was granted by the Court of Appeal. This Judgment brings a conclusion to his legal challenge.

While this is an important step forward for LGBTQ+ communities it will take time for its effect to be felt and there is still much work to do to create a fully inclusive and equal rights platform for the LGBTQ+ community.

Joanne Brown and Adrian Au

For specific advice on your situation, please contact:

Joanne Brown
Partner | [email protected]

Adrian Au
Partner | [email protected][email protected]

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Jul 18 2023

In our previous article, we explored the confidential nature of divorce proceedings; the legal framework of protection of confidentiality over documents and information disclosed in divorce proceedings; and remedies available from the Court if you discovered that your spouse has obtained your confidential information without your consent.  

In this article, we shall continue to explore the financial disclosure mechanism in divorce proceedings, the extent of financial disclosure you will be required to make regarding your business; and concluding with a few past examples of parties attempting to limit the information available on the disclosed documents.

Questionnaires and Answers

The Court has general oversight of the extent of discovery to guard against using discovery applications to fish for information. Requests for disclosure of documents must be relevant to the issue in dispute and must not be oppressive and/or disproportionate. Questionnaires that do not comply with these requirements will not be allowed. On the other hand, the Court has the power to compel a party to give disclosure.

However, this does not mean that a unified standard of disclosure is applied throughout the entire proceeding to ensure proportionality.  Where only general disclosures are expected prior to the FDR hearing, more detailed disclosure maybe allowed if no settlement is reached and the matter proceeds to trial. 

How then do you deal with requests to disclose your company’s corporate documents?

Obligations of a shareholder

Legal practitioners under the Common Law will be familiar with Salomon v Salomon & Co. Ltd. [1897] AC 22, which firmly establishes that a company is a legal person of its own right, having a separate and distinct identity from its shareholders. Although a shareholder has a right to share in the profits of the company, he / she has no right in the assets in the company’s name, which belong to the company.  This principle applies regardless of whether the company is owned by a sole shareholder or a number of shareholders.

In this context, a shareholder has to disclose in divorce proceedings what is provided by the company in its capacity as a shareholder. This may assist in an expert’s valuation of the shares.

The above does not apply where a company is wholly controlled by you. In that case, you may be required to disclose all relevant documents in the company’s possession. (B v B (divorce proceedings: discovery) [1979] 1 ALL ER 801)

Where there are financial dealings between you and a private company that you are interested in (most typically loans made between yourself and the company), you may also be required to explain and provide evidence of such dealings.

Obligations of a director

The Form E itself only requires you to disclose the directorships that you have held in the last 24 months. Given that directors have no entitlement over the company’s assets, your disclosure may be limited to information and documents relating to director’s remuneration. Where there are financial dealings between you and the company (such as a director’s loan), you may be required to explain and provide evidence of such dealings.

Obligations of a director who is also a shareholder

A director will usually have access to corporate financial documents which are not available to shareholders, such as profit and loss statements, balance sheets, cash flow statements, corporate bank statements or even invoices and receipts.  These documents maybe highly relevant in litigation as to the valuation of the company, and thus the value of your shareholding in the company.  

Although these documents belong to the company, the general rule ‘is that a party to a suit must disclose all the documents in his possession, custody or power which are relevant to the matters in issue. The Court has a discretion whether or not to order him to make such disclosure, and also has a discretion whether or not to order him to produce the documents for inspection by the other party or the Court’ [emphasis added]. (B v B, above) These documents can be categorised into those that are: (i) in actual possession / custody of the party who is a director of the company; and (ii) within the director’s power to obtain from the company.

Documents in Actual Possession / Custody of a Director – If there are relevant documents of the company that are within your physical possession, you must disclose them upon request by the other party, even though you may be holding them as a servant, agent, or officer of the company.

Documents in the Power of a Director to obtain from the company – Whether these documents are in the power of a director will depend on the facts of each case.  In his context, ‘power’ means ‘the enforceable right to inspect or obtain possession or control of the documents’. (B v B, above)

The Judicial Discretion

Having said the above, it does not mean that the Court will always order disclosure of documents in the custody, possession and power of the director beyond what is required in the Form E. Ordering disclosure is within the discretion of the Court. In exercising its discretion, the Court will have to regard to all the circumstances of the case. ‘The court will balance the relevance and importance of the documents and the hardship likely to be caused to the [applicant] by non-production against any prejudice to the [respondent] and third parties likely to be caused by production’. (B v B, above)  

Generally speaking, the Court is unlikely to order disclosure beyond financial statements unless 1) further documents or information are necessary for valuation, or 2) there is evidence indicating that the financial statements are unreliable (such as evidence of accounting irregularities or unusual fluctuation in figures).

More importantly, the Court will not order parties to do which they have no power to do, nor make an order for production unless it is satisfied that production is necessary either for disposing fairly of the issues between the parties or for saving costs.  In a corporate setting, the board of directors may have legitimate reasons for opposing production of sensitive corporate documents. If this is the case, provided that the Court is satisfied that the objection is not contrived for the purpose of frustrating the powers of the Court, the Court will not compel the director to disclose the documents sought.

I am Obliged to Disclose, What’s Next?

Even when a party is under an obligation to disclose, that party may still seek to limit the scope of disclosure, the form of disclosure, or the persons having access to the documents. In the past, where information involved requires to be kept in utmost confidence (e.g. trade secrets), parties have successfully sought to limit disclosure to the parties’ representatives and accountants (as opposed to the party seeking the disclosure) and on a need-to-know basis. In those circumstances, the Court will be the final decision-maker as to ‘who gets to see what’ to strike a balance between maintaining confidentiality and avoiding prejudice to the other party’s ability to advance his case.

In other circumstances where document sought might be voluminous (in one case, requesting a few years of the company’s trade records), parties may wish to consider inspecting the documents prior to requesting production of copies.

Concluding Remarks

A party’s obligation to give full and frank financial disclosure is first and paramount in any divorce proceedings. Failure to comply could potentially attract serious legal consequences.

Even when a party is able to disclose information or documents, the Court may still refuse to exercise its discretion to order disclosure, if such disclosure is unnecessary, disproportionate or may cause undue hardship to the disclosing party. Even if a disclosure order is made, the disclosing party may still invite the Court to impose conditions of disclosure.

Needless to say, each case will turn on its own facts and each concern will require its own tailor-made solution.

Adrian Au and Sam Ng (Gilt Chambers)

For specific advice on your situation, please contact:

Adrian Au
Partner | [email protected]

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