Db v. Dma
Read the full judgment text of FCMC 1006/2021 on BabelCite. This Family Court judgment was delivered on 15 February 2022 before Deputy District Judge Peter Barnes.
Matrimonial law – Maintenance pending suit – Interim maintenance – Financial disclosure – Capacity to pay – Reasonableness – District Court – DB v DMA – Maintenance order – Costs – Matrimonial Proceedings and Property Ordinance – Petitioner seeks maintenance for herself and four children with medical needs – Respondent claims financial hardship due to business downturn – Court finds Respondent deficient in financial disclosure – Court orders Respondent to pay HK$6,400 per month – Costs awarded to Petitioner
Legal issues: Maintenance pending suit and interim maintenance budget · Respondent's financial capacity and disclosure
Outcome: Order made for maintenance pending suit and interim maintenance. Respondent to pay Petitioner HK$6,400 per month. Costs awarded to Petitioner.
Cites 2 cases
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FCMC 1006/2021 [2022] HKFC 34 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MATRIMONIAL CAUSES No. 1006 OF 2021 ----------------------------
---------------------------- Coram: Deputy District Judge Peter Barnes in Chambers (Not open to public) Dates of Hearing: 7 February 2022 Date of Judgment: 15 February 2022 ------------------------------------------------------------ J U D G M E N T (Maintenance pending suit/Interim maintenance) ------------------------------------------------------------ A. The Application 1.By Summons dated 12 November 2021 the Petitioner/Wife (W) applies for maintenance pending suit for herself, and for interim maintenance for the four children of the marriage: twin boys Ad and Ar, who are 14 years old, and two daughters H, aged 10 and M, who is 4 (“the Children”). By paragraph 1 of the Summons she seeks the following Order:
2.By Order dated 18 November 2021 Her Honour Judge Melloy fixed the hearing of the Summons, and gave the usual directions for the filing by H of his responding affirmation and by W of her affirmation in reply. Leave was granted for W to adduce an Amended Questionnaire and for H to supply his Answers thereto. These directions were given upon H’s undertaking (Annex A to the sealed Order) to continue to pay HK$27,800 for the family expenses, comprising:
B. Background 3.W is 35, H is 46. They are both from Guinea, in West Africa. They were married in Africa in 2005. Although separated, the parties still live together with their Children in the matrimonial home – an apartment in Kowloon. The apartment is leased by H’s money exchange company, G D Limited (“GDL”). 4.W was educated to secondary level and was a student at the time of her marriage. She has never worked and has devoted herself to raising the Children and taking care of the household. The parties had the benefit of a domestic helper from 2012 (shortly before their third child was born) but in 2019 the helper’s contract was not renewed. H says this was because he was no longer able to afford the expense, and additionally because, after he and W began to sleep in separate rooms, there was insufficient space in the flat for the helper in addition to the parties and the Children. 5.H received tertiary level education in Africa and completed his university studies in 1998. He pursued further studies in Belgium and then the UK, and then worked as an accountant for a year and then an administrator in a UK university for a further 2 years. Shortly after his marriage to W in 2005, H returned to the UK. Later that year H started a business in China and W joined him there in 2006. She gave birth to the twin boys the following year. 6.In late 2009/early 2010, H relocated to Hong Kong and W, who had spent some time in the UK with the twin boys for visa-related purposes, rejoined him in mid-2010. They have lived continuously in Hong Kong since then. 7.All four of the Children have some medical issues. Both of the twins were diagnosed to have sickle cell anaemia at birth requiring treatment in China. Both girls were also diagnosed with sickle cell anaemia at birth requiring medical treatment. Ad, one of the twins, still has regular blood transfusions. 8.Ad, and the younger of the two daughters, M, have each been diagnosed as autistic: Ad in 2011, and M in 2020. In 2013, when he was 5 years old, Ad was assessed by a medical officer of “functioning with low moderate intellectual disability” and four years later he was assessed again by an educational psychologist, who concluded that he had “severe grade intellectual disability”. He is attending Form 2 at a school in Tsing Yi which caters to his particular needs and allows him to board there from Monday to Friday. He returns home on weekends. 9.M also has special challenges. When she was around 3 years old, M was assessed to have significant global development delay, severe language impairment and autism spectrum disorder. 10.The Petition was filed February 2021 on grounds of unreasonable behaviour including an allegation of “financial abuse” and failure to take care of the Children. In his Form 4, H signaled his intention to defend the case, but also stated that he consented to the divorce. The Decree Nisi was pronounced on 28 January 2022. 11.The appropriate orders in relation to the Children remain in dispute. As directed by the Court, the parties have exchanged Forms J and a Social Investigation Report is to hand. A CDR has been fixed for 25 July 2022. C. The Law 12.Section 3 of the Matrimonial Proceedings and Property Ordinance (Cap 192) (“MPPO”) provides that the Court upon a petition for divorce may order “either party to the marriage to make to the other such periodical payments for his or her maintenance and for such term, being a term beginning not earlier than the date of the presentation of the petition … as the court thinks reasonable.” 13.Section 5(2)(a) of the MPPO states that the Court may make an order that “a party to the marriage shall make to such person as may be specified in the order for the benefit of a child of the family, or to such a child, such periodical payments and for such term as may be so specified.” Such orders may be made in divorce proceedings “before or on granting the decree of divorce, of nullity of marriage or of judicial separation, as the case may be, or at any time thereafter”: s 5(1). 14.The approach to be taken by the Court upon applications for maintenance pending suit and interim maintenance was confirmed by the Court of Appeal in HJFG v KCY [2012] 1 HKLRD 95:
15.In all matrimonial cases involving claims for ancillary/financial relief, including for interim orders, both parties are under a duty to ensure that the Court is provided with sufficient information as to their financial resources. This is a continuing duty and is not confined to completing information in and attached to the Form E and Answers to Questionnaires: GW v RW (Financial Provision: Departure from Equality) [2003] 2 FLR 108 at §17 (Mostyn J). D. The MPS/IM claim/budget 16.In her first Affirmation W supplied a breakdown of her claim for $18,400 per month:
17.As can be seen from these tables, most of the claimed expenses are already being paid by H. 18.The existing arrangement can readily be secured by H’s undertaking to continue meeting the expenses, alternatively an order that he do so. At the hearing on 7 February 2022, W’s solicitor Ms. Li confirmed that he client would be content with this, with certain exceptions, namely
19.In her reply affirmation, W gave examples of disputes over money with H for one-off purchases: his refusal to buy Ar a new pair of shoes (para 22) and pay for repairs for Ar’s mobile phone, in each case forcing her to pay for them herself. She also purchased a new stove, again from her own savings (para 23). She claimed that H had failed to comply with the undertaking he gave to the Court recorded in the November 2021 Order (para 24), resulting in total expenditure in the two months since the November 2021 Order of HK$6,730. None of these allegations were admitted by H. His solicitors (who by the time of the hearing had ceased acting) denied the allegation that he had breached the undertaking. 20.W did not supply much by way of documents to prove her monthly expenditure. No receipts were attached to the Form E or either of her affirmations. It is understandable that it is near impossible to provide receipts for everything – food purchased at a wet market for example – but the Court normally expects on such applications at least some receipts e.g. for clothing and shoes so that it can conduct its forensic examination. 21.W instead relied primarily on the historical support she said H had providing. In her first affirmation she said this:
22.I clarified with Ms. Li as to the claimed allowance for food, given that according to these paragraphs the “budget” for food was HK$4,200 i.e. $3,200 + $700 + $300. She confirmed (on taking instructions) that her client was prepared to accept HK$4,200/m as sufficient. 23.H’s response to W’s affirmation is that he had always done his best to provide for all family members according to his ability (H’s affirmation, paras 17, 20) and he denied any suggestion that he had reduced the support given by him before the relationship soured:
24.Although in these paragraphs H suggested W was engaging in an “extravagant lifestyle”, there is nothing to indicate W has been extravagant on her spending for herself or the Children nor wishes to be so in the future. Indeed, it seems to me that her claim is quite modest. 25.H accepted that W’s revised budget for food at HK$4,200 was reasonable, and he did not seriously contest the amounts claimed by W for her personal expenditure: his primary focus was on ensuring the Children continued to be provided for. He said that he covered expense for the Children: it is he who buys their school uniforms, ensures they have lunch money and pays for their transport. He also said that he is responsible for the medical expenses and gave an example that he takes his son Ad every 6 weeks or so for his blood transfusions, and if it is W who arranges this, or takes any of the other children to the doctor/hospital, then he would cover the costs involved. 26.Noting the amounts already paid by H, I will allow the following as expenses to be paid (subject to the question of capacity) by H to W:
27.Subject to the question of capacity – to be addressed next – this will be on the basis that H is to continue to pay for all other items including school fees and extra tuition fees. E. Capacity 28.As noted, W has never worked. She receives annual HK Government student subsidies of HK$10,000 (HK$2,500 per child) and an annual HK$5,000 consumption voucher: reply affirmation, para 27. The student subsidies are paid at different times (because the Children attend various schools) and the consumption voucher in or about October each year. W has no significant assets and her bank balance is minimal. 29.In his Form E, H disclosed his monthly income as HK$25,000 plus a small amount (HK$4,316) for a few interpreting jobs he had in the year leading up to its filing. He said he also received a disability allowance for Ad of HK$2,055/m. I should say at this point that his Form E was signed on 17 May 2021, and it is readily apparent from his bank statements that by this time the allowance had increased to HK$2,190 per month: SCB statement 7 May 2021. 30.H says that his business GDL – in which he holds 25% of the shares – has been hit hard by Covid and the extreme downturn in the number of visitors to Hong Kong, and that this came on top of other factors adversely affecting the company’s performance: the Ebola outbreak in west Africa (a particular focus of the money exchange business) and the 2019 Hong Kong protests. 31.W’s position has been consistent throughout her affirmations and the submissions on her Summons: she says that his earnings and savings are greater than he has stated in his Form E, his Answer to her Questionnaires and in his affirmation. 32.W pointed to the fact that H had unsuccessfully applied for Government financial assistance, which would indicate he was earning in excess of the upper limit for eligibility for such assistance. In her 1st affirmation she said that H had told her he had applied for government subsidies such as public housing and financial assistance for primary and secondary students but failed the means test. She claims (1st Affirmation, para 14) “the Respondent would have earned more than around HK$563,000 annually (i.e. HK$47,000 per month) for us to be ineligible for the assistance last year (year 2020-2021)”. She exhibited (at “DB-1”) a document providing information about the financial assistance schemes for primary and secondary students and which speaks of AFI eligibility benchmarks for the 2021-2022 school year, “AFI” standing for “Adjusted Family Income” as a means test, calculated by dividing the gross annual income of the family by the number of family members “+(1)”. 33.According to the same exhibit an AFI exceeding HK$79,976 will exceed the means test and mean the family is not eligible to receive assistance. Assuming that H made an application for this kind of support, and his income had been fully assessed (W does not say when he applied), this might suggest his income for the year of assessment was in excess of HK$559,832 i.e. (6+1) x HK$79,976. 34.W also pointed to H’s spending pattern disclosed in his Form E, which exceeded his claimed income, suggesting that he must have other financial resources available:
35.H’s affirmation responded to these claims thus:
36.With his Form H, H supplied bank statements, and an Employers return of GDL indicating income of $25,000/m from this business. He also provided financial accounts of GDL for the year to 31 March 2019 and a tax assessment for the company for the same year recording assessable profits of HK$160,000. The accounts including entries for “Directors remuneration” of HK$180,000 for 2018/19 and staff salaries of HK$844,160 for the same year. 37.H’s Form E listed his monthly expenses as follows:
38.There seem to be some errors in his entries for Children: $7,500 per month for school books and stationery seems very high as does $4,800 per month for school uniform. These may be annual figures. Even so, and also taking into account the HK$2,000 concession made by the landlord of the matrimonial home reduction, H’s monthly expenses are well in excess of his claimed income. 39.One of the important disputed items is whether GDL (the tenant of the matrimonial home) is paying the rent or H is doing so on its behalf. It would have been of some assistance to have more information about the current financial position of the company. At the hearing, H said that financial statements for GDL for the succeeding years 2019/2020 and 2020/2021 were available but had not been supplied either to the Court or W. 40.The central problem with H’s assertion of lack of capacity to pay any more than he is doing at present is that his financial disclosure is less than adequate. 41.W’s Amended Questionnaire followed a fairly standard format of seeking further particulars of information supplied including significant bank transactions. H was represented at the time he filed his Answers. This document unfortunately reveals a complete misunderstanding, or simple ignorance of the duty of full and frank disclosure. 42.W’s question seeking details of a number of deposits into the SCB account (Question 4) was responded to in this way:
43.This suggested that H’s account with SCB was used for the business. At the hearing, H confirmed that GDL did not have its own bank account and all company transactions were run through his SCB account. 44.In response to a Question seeking more information about GDL, and two other companies in which H had been involved, H replied:
45.By Question 15 of the Questionnaire, H was asked about the personal loans from friends including as to their terms, dates and amounts of payment etc:
46.All these answers are evasive. It was important for H to explain the deposits into his SCB account, particular given that it was being used for both personal and business purposes. Further, it was fair for W to request details of personal loans, especially so because H’s Form E was internally inconsistent: Under 2.13 “Liabilities” H entered “N/A” and “HK$0.00”, yet in para 5.5 of the same Form he said that “I have been operating on a small salary with no real savings. I have even had to resort to taking personal loans from friends to help meet my family expenses. Even though I did not contract institutional debts, I have been taking personal loans.” No details were provided as to the quantum/timing/terms of the loans, and as noted, he refused to provide further information to W when requested to do so. 47.During the hearing I reminded H of the nature of the duty of full and frank disclosure, pointing out that the cover page of the Form E itself does so. I gave him an opportunity to provide some information as to the certain deposits into his SCB account. He said that some of the amounts were received from friends for various purposes including because they did not have a Hong Kong account. As an example, he said that some of the moneys received represented financial assistance for Somali refugee families in Hong Kong, who could not open accounts. He said he received the financial assistance money and then paid it out to the refugee families in cash. This was a perfectly reasonable explanation, but one which could and should have been given in his Answers to W’s Questionnaire. I asked H about the rental payments and for evidence he was making the payments, and he said that he withdrew amounts in cash and then made the deposits into the landlord’s account. 48.This attempt to supply further information was too late and inevitably incomplete. 49.None of the questions or requests in W’s Amended Questionnaire amounted to unusual or unreasonable requests for information. H could and should have supplied the information requested, and he had the ability to supply more recent financial statements of GDL to the Petitioner and to the Court, and in respect of the personal loans, all of which would have facilitated the assessment of his ability to pay the amount of MPS and child maintenance requested by the Summons. 50.I do not ignore the fact that the management accounts of GDL for the year ended 31 March 2019 show it trading at a loss. The administrative expenses for that period exceeded the company’s operating income. I have taken into consideration H’s assertion that the business has suffered a downturn due to the pandemic, with other factors negatively influencing its performance. 51.Nonetheless, I find that the H has been deficient in his financial disclosure including in his decision not to provide proper Answers to W’s Amended Questionnaire. 52.Taking all matters into account, I am satisfied that H has the ability to pay to W the amount I have assessed should be paid in addition to his existing commitments. 53.Before making my order I should address one further matter which arose during the hearing. H raised a complaint that W was holding on to the Children’s identification documents – passports, ID cards, birth certificates – and refused to provide them to H when he needed e.g. to take them to a medical appointment. I will include in the order a direction that in the event H takes any of the Children for a medical appointment then W will provide that particular child’s birth certificate or passport or ID card to H, with such document to be handed back to W upon the completion of the appointment. Order 54.I therefore make the following Order on the Summons
55.Ms. Li on behalf of the Petitioner sought the costs of the Summons. W has been mostly successful and I see no reason why she should not have her costs as clearly the application was necessary. I make an order that the costs of the Summons be paid by the Respondent to the Petitioner to be taxed if not agreed, and for the Petitioner’s own costs to be taxed in accordance with Legal Aid Regulations. 56.One final point: If there is a HKG financial support program for which this family may be eligible, it seems to me that an application for such assistance should be made now, rather than (as H said in paragraph 24 of his affirmation) at the end of the case.
Ms Tina Li of Liu, Chan & Lam for the Petitioner The Respondent acts in person | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cases cited in this judgment
Further hearings and rulings under FCMC 1006/2021