NSK v. KRW

NSK v. KRW

Judge found the husbands establishment of the three trusts substantially undermined the wifes claim and, applying s.17 Cap 192 and the authorities, set aside the three declared trusts and included the trust shares and cash prima facie in the matrimonial pot; applied the sharing principle (50:50) notionally, ordered immediate equalisation lump sum of HK$3,282,910 payable on decree absolute, ordered 50% of net proceeds of sale of the husbands 614,067 HH Ltd shares to the wife upon sale, and ordered periodical payments of HK$100,000 per month from 1 April 2019 pending those lump sums; made an order nisi that there be no order as to costs to be absolute in 14 days.

Citation
[2019] HKFC 89
Parties
Petitioner (wife): NSK; Respondent (husband): KRW
Court
Family Court
Jurisdiction
Hong Kong
Judgment Date
2 April 2019
Case Number
FCMC7594/2015
Procedural Posture
Matrimonial (ancillary Relief; S.17 Application) / Judgment: Final Ancillary Relief and S.17 Ruling
Outcome
Section 17 application granted in part: three trusts set aside and assets prima facie added to matrimonial pot; final ancillary relief granted with specified capital and periodical payment orders and consequential directions.
Legal Topics
Section 17 Application, Setting Aside Dispositions, Ancillary Relief, Asset Tracing and Valuation, Maintenance, Costs, Disclosure/misconduct
Source Language
EN
Family Law Trusts Law Property Law Civil Procedure Section 17 Application Setting Aside Dispositions Ancillary Relief Asset Tracing and Valuation +3 more

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Parties

NSK

Petitioner (wife)

KRW

Respondent (husband)

Procedural Posture

Matrimonial (ancillary Relief; S.17 Application) / Judgment: Final Ancillary Relief and S.17 Ruling

Legal Issues

  1. 1 Whether three trusts and related dispositions were made with intent to defeat the wifes claim under s.17 MPP Ordinance
  2. 2 Whether the dispositions should be set aside and trust assets included in the matrimonial pot
  3. 3 Identification and valuation of matrimonial assets (shares, cash, properties) without expert valuation

Ratio Decidendi

Judge found the husbands establishment of the three trusts substantially undermined the wifes claim and, applying s.17 Cap 192 and the authorities, set aside the three declared trusts and included the trust shares and cash prima facie in the matrimonial pot; applied the sharing principle (50:50) notionally, ordered immediate equalisation lump sum of HK$3,282,910 payable on decree absolute, ordered 50% of net proceeds of sale of the husbands 614,067 HH Ltd shares to the wife upon sale, and ordered periodical payments of HK$100,000 per month from 1 April 2019 pending those lump sums; made an order nisi that there be no order as to costs to be absolute in 14 days.

Court Disposition

Section 17 application granted in part: three trusts set aside and assets prima facie added to matrimonial pot; final ancillary relief granted with specified capital and periodical payment orders and consequential directions.

Orders

  • Order setting aside: declaration of trust dated 30 October 2013 (one share in RK Company Ltd) in favour of KR to be set aside
  • Order setting aside: declaration of trust dated 1 September 2015 in favour of KE re 245,770 HH Ltd shares to be set aside