T, Ba v. Z, J
Read the full judgment text of FCMC 3369/2021 on BabelCite. This Family Court judgment before Deputy District Judge Robin Egerton.
Child maintenance – Variation – Matrimonial Proceedings and Property Ordinance – Financial disclosure – District Court – Whether maintenance order should be varied – Yes; Court considers all circumstances and income disparity – Father ordered to pay HK$24,000 per month; Costs for trial bundles awarded to Father
Legal issues: Variation of Child Maintenance · Financial Disclosure · Costs
Outcome: Order varied; Father to pay maintenance; Costs order made
|
FCMC 3369 of 2021 [2025]HKFC 106 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION MATRIMONIAL CAUSES NO.3369 OF 2021 ____________
____________
--------------------------------------------- Judgment --------------------------------------------- A. Introduction 1.The Parents were married on 30 April 2013. 2.There are two Children, C1 born in January 2015 and C2 born in October 2016 (“the Children”); they both attend G school in Hong Kong. 3.There are ongoing proceedings in relation to the Children’s arrangements with a Call Over scheduled for 8 August 2025. 4.On 25 May 2022, following the filing of a consent summons on 7 April 2022 (“the Consent Summons”), a consent order was made in relation to the Ancillary Relief (“the Order”) with a Decree Absolute of Divorce being pronounced on 23 June 2022. B. Applications before the Court 5.By her Notice of Application for Ancillary Relief dated 1 March 2024, the Mother sought the following relief :
6.By her amended Notice of Application for Ancillary Relief dated 4 October 2024, the Mother seeks the following relief :
7.On 14 October 2024, the Father filed an application to vary maintenance :
8.I take the Mother’s Amended Notice of Application as an application to vary and review the Order. C. Parties’ Opening Positions 9.The Father’s proposal
10.The Mother’s proposal
11.In her Closing Submission, the Mother sought HK$38,000 per month and/or a 50% share of the Children’s expenses and continuation of HK$160,000 as security for future payments. 12.In his Closing Submission, the Father confirmed his Open Proposal. D. Applicable Law 13.The seminal judgment delivered by the Court of Appeal on 10 January 2008 in AEM and VFM, (CACV 261 of 2006) states as follows :
E. Financial Disclosure 14.It is an unfortunate feature of the applications that, as referred to below, I consider that neither party has complied with their respective obligations to the court and each other to make full, frank and clear disclosure of all their financial and other relevant circumstances. 15.As an example, it was apparent at the trial that both Parties had failed to disclose their current employment contract; these were only produced as P1 and R1 on 11 February 2025, the 2nd day of the trial. 16.Although the Parties are currently litigants in person, they have had legal advice. In any event and in addition to which Form E gives clear and precise guidance to the deponent as to the duty of disclosure and the consequences of failing to make disclosure :
17.In the circumstances, there is no excuse for a litigant, whether acting in person or represented, to fail in their duty to make the disclosure required. Where a litigant fails to comply with such duty, they have only themselves to blame in the event the court has difficulty assessing their case and the application(s) to be determined. 18.Subsequent to the Trial, by a letter received by the Court on 20 February 2025, the Father complained that he had been unable to cross-examine the Mother on her contract of employment dated 4 November 2020, which she produced as R1 on the 2nd day of the Trial, 11 February 2025. 19.The preparation of this judgment was hindered by the Parties’ financial disclosure, and therefore on 3 April 2025, I gave the following directions :
20.The Mother’s affirmation of 24 April 2025 inter alia confirmed her monthly income to be HK$151,000 and that she received a bonus in 2024 of HK$648,927 (@HK$54,000 per month); that is to say @HK$205,000 per month. 21.In addition, the Mother deposed to the fact that subsequent to a ‘post trial event’ she received the sum of HK$335,472 on 28 February 2025 as part of her employer’s Long Term Performance Plan for the years 2022-2024 (“LTPP”) which the Mother referred to as a monthly benefit of HK$13,978. It would appear that the Mother calculated the figure of HK$13,978 by dividing the LTPP by 24 months, however, it is of note that her exhibit JZ 8 describes HK$335,472 as the original value and gives the current value as HK$371,513, which divided by 24 months = HK$15,479. 22.The Mother’s explanation for not disclosing the LTPP was as follows:
23.It remains unclear whether the monthly benefit is HK$13,978 or HK$15,479; I propose, on a broad brush basis, to take the sum of HK$15,000. 24.I calculate the Mother’s monthly income to be HK$220,000 (Basic salary HK$151,000 + bonus of HK$54,000 + LTPP HK$15,000). For the purposes of the applications, I will work on the basis that the Mother’s gross income is HK$220,000 per month. 25.The Father’s affirmation of 24 April 2025 confirmed his current income as follows:
26.I do not propose to take into account the MPF $1,500, so for the purposes of the applications, I will work on the basis that the Father’s gross income is HK$130,000 per month. F. Analysis 27.I consider the starting point to these applications is the Order and in particular :
28.The Recital O of the Order recorded that the first child maintenance payment would be made on the signing of the Consent Summons which was 7 April 2022 and that payments would continue for 30 months and that thereafter there would be a review of the Children’s expenses and how such expenses should be shared between the Parties. 29.In the context of the intended review, it is necessary to consider the Children’s expenses, the respective income and expenses of the Parents, and how the Children’s expenses should be shared between the Parents. G. The evidence The Mother’s oral evidence 30.In her oral evidence, the Mother updated the Children’s expenses as stated in her written submissions; her monthly rent had increased to HK$35,000 from 1 February 2025, and the Children’s school fees had increased by HK$1,050 per month. 31.I calculate, as best as I can, that the Children’s expenses as claimed by the Mother are as follows :
32.The Father challenged the Mother’s evidence, inter alia in relation to her financial disclosure, her income and a number of items of expenditure. 33.In her claim for the Children’s expenses, the Mother claims 2/3 of the monthly rent. I understand the Father’s case to be that the Children’s maternal grandmother, aged approximately 71, occupies the property and that the Children therefore share a bedroom as their grandmother occupies the third bedroom. The Mother explained that her mother does not live full-time with her and the Children and that she lives with her husband, who is approximately 70 and lives and works in the Mainland. In the overall circumstances of the case, I do not propose to disturb the 2/3 apportionment, although I will bear in mind that there is a potential overlap of the expenses the Mother has claimed in her General Expenses and those for the Children; for example, rent, utilities, food and domestic helper. 34.In her most recent Form E (May 2024) in the list of monthly General Expenses of HK$88,800, the Mother claimed HK$30,000 for “Other (specify) Legal bill, Mediation, Counselling”. The Mother’s explanation was that this was historic; it was the same amount the Mother had claimed in her Form E filed in July 2021. Although the Mother has on occasions had legal advice, her Form H does not disclose legal costs of such magnitude; I also note the Parties have not recently been engaged in mediation. Even allowing for some cost for counselling, I consider the figure of HK$30,000 to be unrealistic and inflated; I will allow HK$5,000. 35.In her Personal Expenses, the Mother claimed HK$10,000 for “Contribution to parents”. This was the same amount the Mother had claimed in her Form E filed in July 2021. However, in her Answer filed in October/November 2024, the Mother, in reconciling her yearly bank statements, stated “Payments in arrears to parents -480,000, $10,000 per months for 48 months”. On the basis that the Mother has not in fact been contributing to her parents on a monthly basis but rather purportedly a one-off payment calculated over a 4-year basis (48 months), I do not consider this to be a monthly expense to be taken into account. 36.In the circumstances, doing the best I can, I calculate the Mother’s expenses to be as follows :
37.The total of the Mother’s General and Personal monthly expenses is HK$81,204, which I will round up to HK$82,000. 38.The Father challenged the Mother that she had not in her Form E disclosed the landed property which is referred to in paragraph G of the Order: “the Respondent shall retain sole and absolute legal and beneficial ownership in the landed property in Chongqing registered in the sole name of the Respondent’s mother; the Petitioner shall waive all his claims in relation to such property.” 39.As the applications before the Court relate to a variation of child maintenance and there has been a Clean Break, I do not propose to further consider this aspect. 40.The Father challenged the Mother that in addition, her income should take into account the MPF contributions :
41.As I understand the Father’s case, he was suggesting that the Mother had caused her employer to increase its MPF contribution with the objective of reducing the Mother’s available income. 42.On the evidence before me, I do not accept the Father’s contention; for the purposes of the applications, as referred to above, I consider the Mother’s monthly gross income to be HK$220,000 and her General and Personal expenses to be HK$82,000 per month. The Father’s oral evidence 43.In his evidence in chief, the Father disclosed that he had received a bonus of US$30,000 on 6 February 2025. I calculate this to be approximately HK$234,000. 44.On the 2nd day of the hearing, the Father produced a printout of his HSBC statement (P2) recording such receipt and payments on 6 February 2025 which he stated to be as follows :
45.When asked by the Mother why he had not disclosed his contract of employment, he had replied that he complied with the obligation in his Form E of 27 May 2024 to provide “Copies of proof of income of earned income for the last 3 months or contract of employment if any”. 46.By the order of 29 April 2024, the Parents were directed to file their respective Answer to Questionnaire by 22 July 2024. The Mother’s Questionnaire dated 24 June 2024 specifically asked for a copy of the Father’s contract of employment. 47.In his Answer dated 27 June 2024 the Father stated :
48.At the request of the court, the Father produced his contract of employment on the 2nd day of the trial (P1). It is a 7-page document, the 1st page of which is dated 7 June 2024; it was signed by the Father on 11 June 2024 prior to the date of the Father’s Answer dated 27 June 2024 wherein he had stated that “I currently have no income”. 49.Inter alia, the contract includes the following terms :
50.The Mother challenged the Father as to his employment at the time the Consent Summons was signed on 7 April 2022, leading to the making of the Order, specifically referring the Father to the following documents and chronology:
51.My understanding of the Father’s evidence was that the Social Investigation was hearsay, however at the end of the trial, at its request, the Father informed the court that his employment history is as follows :
52.The Mother also challenged the Father’s disclosure as to his MPF in his Form E dated 6 June 2021, wherein he stated :
53.My understanding of the Father’s evidence was that “liquidated” was an inappropriate choice of word and that he was in fact unable to liquidate his MPF. 54.The Mother also challenged the veracity of the Father’s loans listed in his Form E of 8 June 2021, in particular :
55.The Father stated he was estranged from his father. He no longer recorded such loan in his Form E of 27 May 2024; the loans he did record were as follows:
56.As referred to above, the Father has made recent payment to his Mother and for tax. 57.In the normal course of events, it should not be necessary to canvass historic evidence leading to a clean break settlement and Order when the only issue before the court is that of child maintenance. However, the particular facts and circumstances of this case are that the capital division between the Parties was structured so that in effect the Father’s contribution to the Children’s maintenance for 30 months was by a capital sum being set aside from the Father’s share of the matrimonial assets as set out at paragraph F(c) of the Order. 58.The Mother has stated in her Opening and Closing Submissions that she is clearly of the opinion that the Father did not make full and frank disclosure of all his circumstances at the time the Consent Summons was negotiated. Although the Mother is not, as I understand her case, currently applying to have the Order set aside for material non-disclosure, she clearly feels aggrieved. The Father’s income 59.In his Form E dated 27 May 2024, the Father stated that he had zero income and that in paragraph 5.5 “I am currently unemployed & it could take >12 months to find work. During this time I will borrow money from my mother to pay rent and support myself.” As referred to above, his contract of employment is dated 7 June 2024 (P1); a matter of days after the filing of his Form E. 60.On 19 August 2024, the Court inter alia ordered as follows :
61.In his affirmation of 2 September 2024, the Father updated the following :
62.The pay slip exhibited is for July 2024 and states
63.The Father did not disclose his bonus as specified in his contract of US$30,000 (HK$234,000). 64.I propose to apportion this on an annual basis = HK$19,500 per month excluding MPF. 65.I therefore consider the Father’s gross monthly income to be HK$130,000. The Father’s claimed expenses in his Form E dated 27 May 2024 66.General
67.I consider the Father’s figures for Food (HK$15,000) high; in the circumstances, I propose to allow HK$10,000; I therefore assess the Father’s General Expenses at HK$47,500. 68.So far as the Personal Expenses, I note the Father paid tax from his capital as he disclosed at the trial, on income of HK$130,000. I consider the figure of HK$20,000 more realistic than the claimed figure of HK$30,000; I propose to allow HK$20,000 for tax, therefore the Father’s Personal Expenses are HK$27,500. 69.I do not accept the figure of HK$15,000, which the Father claims as “payment to wife for child care / help, as per order 27 March 2024 wife is to be present during “o/n” access so quit job to relocate” as an expense. I allow the Father’s Children’s Expenses at HK$20,000. 70.I therefore consider the Father’s expenses to be HK$95,000 per month, including the Children’s Expenses and HK$75,000 excluding the Children’s Expenses. H. The outcome 71.Both Parties are clearly numerate, highly literate and employed in positions of significant responsibility, yet they both failed to disclose their contracts of employment until the trial itself and have inflated and/or padded their alleged expenses. 72.This is a paradigm example of how Parties should not conduct an application before the court. Their respective failures to adequately disclose their circumstances have no doubt made meaningful negotiation virtually impossible and have left the Court with insufficient substantiated details, making an assessment of their respective cases unreasonably challenging. 73.With the above caveat, I summarise the Parents’ income and expenses as follows:
74.The Mother’s Children’s expenses are HK$88,269, which for convenience I will round up to HK$88,500, and the Father’s Children’s expenses are HK$20,000, making a total of HK$108,500. On the basis that each party pays 50% of the Children’s expenses, this would equate to HK$54,250. The Father pays HK$20,000, leaving a balance of HK$34,250. 75.By reason of the disparity of the Parents’ income, I consider that the Mother should pay a greater percentage of the Children’s expenses of HK$108,500. On a broad brush basis, I propose that the Mother do pay 60%, which equates to HK$65,100, which I will round down to HK$65,000, leaving the Father to pay HK$43,500, which I round up to HK$44,000. The Father already pays HK$20,000, leaving a balance of HK$24,000 to pay namely HK$12,000 per month per child. As the Father is in employment in Hong Kong, I do not propose to secure such maintenance. 76.The sum of HK$24,000 per month will be backdated to October 2024, the time of the Mother’s amended Notice of Application. 77.There shall be a reconciliation between the balance of the HK$160,000 or other such sum which remains from the HK$1 million referred to in paragraph F(c) of the Order and the backdated maintenance; any outstanding balance be paid by the Father to the Mother within 42 days of this judgment. Costs 78.The Parents are litigants in person, although it would appear they had legal advice; as to the applications, neither party has been entirely successful. I therefore make no order as to costs save in relation to the trial bundles as set out below. 79.In accordance with the order of 30 September 2024, the Mother was to prepare the trial bundle. The bundles prepared were not paginated until the Father provided paginated bundles. If the Father had not done so, the trial may well not have finished within the two days. The Father’s Form H states that he spent HK$10,000 “preparing and repasting a trial bundle”. 80.In the circumstances, I order the Mother to pay the Father the sum of HK$6,000 for the preparation of the bundles, being 60% of the sum claimed by the Father, such sum to be paid within 42 days of this judgment. 81.Such orders shall be nisi to become absolute within 14 days of this judgment unless either party informs the Court in writing that they wish to be heard on costs. I. Conclusion 82.The Order dated 25 May 2022 be varied to the following extent, namely that paragraph 1 of the Order be replaced with an order that :
The Petitioner (Father) and Respondent (Mother) both appeared in person
|