KCMA v. ABC AND OTHERS

KCMA v. ABC AND OTHERS

The court found H failed to rebut the s17 presumption and had made dispositions with the requisite intention or at least created structures that would defeat W’s claim: transfers of Intero shares into the Family Trust (1 Nov 2015), Bremen shares into the Education Trust (1 Jul 2016) and transfer of the M______ Apartment to R4 (12 Sep 2016) were set aside and the assets restored for inclusion in the Family Pot. The court valued Intero at approximately HKD122.42m, computed the Family Pot at about HKD181.761m, applied equal division, awarded W a clean-break lump sum of HKD79.4m (after credit for prior litigation funding) and ordered child periodical payments of HKD20,000 per child per month;...

Citation
[2021] HKCFI 3392
Parties
Petitioner (wife): KCMA; 1st Respondent (husband): ABC; 2nd Respondent (trustee Family Trust): PBB in his capacity as the trustee of the Family Trust; 3rd Respondent (trustee Education Trust): PBB in his capacity as the Trustee of the Education Trust; 4th Respondent (h's Father): K; 5th Respondent (w's Father): LGA also known as GLA
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 November 2021
Case Number
HCMC1/2019
Procedural Posture
Matrimonial Ancillary Relief (matrimonial Causes No 1 of 2019) / Post Trial Judgment (judgment Delivered 12 November 2021)
Outcome
Partial judgment for Petitioner: dispositions into the Family Trust and Education Trust and the transfer of the M______ Apartment set aside; assets restored to H for inclusion in the Family Pot; equal division applied resulting in lump sum award to W and maintenance orders for children; costs awarded to W and...
Legal Topics
Ancillary Relief, Section 17 MPPO Setting Aside Dispositions, Spendthrift Trusts/asset Protection Trusts, Constructive/resulting Trusts, Forced Heirship (french Law), Duxbury Capital Needs, Valuation of Private Companies, Costs and Litigation Funding
Source Language
EN
Family Law Matrimonial Property Trusts and Succession Cross Border Taxation Civil Procedure Valuation Ancillary Relief Section 17 MPPO Setting Aside Dispositions +6 more

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Parties

KCMA

Petitioner (wife)

ABC

1st Respondent (husband)

PBB in his capacity as the trustee of the Family Trust

2nd Respondent (trustee Family Trust)

PBB in his capacity as the Trustee of the Education Trust

3rd Respondent (trustee Education Trust)

K

4th Respondent (h's Father)

LGA also known as GLA

5th Respondent (w's Father)

Procedural Posture

Matrimonial Ancillary Relief (matrimonial Causes No 1 of 2019) / Post Trial Judgment (judgment Delivered 12 November 2021)

Legal Issues

  1. 1 Whether dispositions by H into two US trusts (Family Trust and Education Trust) and transfer of the M______ Apartment to his father should be set aside under s17 MPPO
  2. 2 Whether certain bank account withdrawals (K___ accounts, SC account) should be treated as H's resources and set aside
  3. 3 Whether S____ Land is held by W's parents on constructive/resulting trust for W

Ratio Decidendi

The court found H failed to rebut the s17 presumption and had made dispositions with the requisite intention or at least created structures that would defeat W’s claim: transfers of Intero shares into the Family Trust (1 Nov 2015), Bremen shares into the Education Trust (1 Jul 2016) and transfer of the M______ Apartment to R4 (12 Sep 2016) were set aside and the assets restored for inclusion in the Family Pot. The court valued Intero at approximately HKD122.42m, computed the Family Pot at about HKD181.761m, applied equal division, awarded W a clean-break lump sum of HKD79.4m (after credit for prior litigation funding) and ordered child periodical payments of HKD20,000 per child per month;...

Court Disposition

Partial judgment for Petitioner: dispositions into the Family Trust and Education Trust and the transfer of the M______ Apartment set aside; assets restored to H for inclusion in the Family Pot; equal division applied resulting in lump sum award to W and maintenance orders for children; costs awarded to W and...

Orders

  • Set aside disposition of H's Intero shares to the Family Trust (1 November 2015) and disposition of H's Bremen shares to the Education Trust (1 July 2016) and consequent transactions
  • Set aside transfer of M______ Apartment to R4 dated 12 September 2016 and consequent settlement into I_____ Trust