Is there a fixed formula for dividing assets in Hong Kong?

No. There is no strict formula. The law gives judges wide discretion, but the guiding principle is fairness. The court looks at each family’s unique circumstances and applies the legal factors under section 7 of the Matrimonial Proceedings and Property Ordinance (Cap. 192).

What factors does the court consider?

The court must consider all the circumstances of the case. Key factors include:

• Income and financial resources of both spouses (now and foreseeable future)
• Financial needs and obligations (including children’s needs)
• Standard of living during the marriage
• Age and duration of marriage
• Physical or mental disability (if any)
• Contributions of each spouse (not just money, but also caring for the home or children)
• Loss of benefits (e.g. pension rights)

Is everything always split 50/50?

Not necessarily. In the landmark case LKW v DD (2010 CFA), the Court of Final Appeal laid down the principle of fairness and a five-step approach:

1. Identify the assets of the parties.
2. Assess needs of both spouses and children (housing, daily expenses, education).
3. Apply the “sharing principle” if there are surplus assets (fair division of marital assets).
4. Consider good reasons for departure from equality (e.g. short marriage, inherited assets, misconduct).
5. Decide the outcome and explain why.

This means the court often starts with a yardstick of equality (50/50 split) but may adjust if the facts justify it.

What counts as “contribution” in asset division?

The law recognises that homemakers and breadwinners contribute equally.

• A spouse who stayed home to raise children and run the household is treated as having contributed just as much as the spouse who earned the income.
• This prevents gender discrimination and ensures fairness.

What happens to the family home?

The family home is usually considered a central matrimonial asset. The court often ensures that the primary carer of the children has secure housing, even if it means transferring property or ordering sale with proceeds divided.

Can pre-marital or inherited assets be excluded?

Sometimes. Courts may treat assets brought into the marriage, gifts, or inheritances as non-matrimonial property. But if those assets were used for family purposes (e.g. buying the home), they are often treated as part of the matrimonial pool.

How do courts handle high-value divorces?

In “big money” cases, the court may still apply equal sharing, unless there are exceptional reasons to depart from it (e.g. very short marriage, special contributions).

Example

• Husband and wife married for 15 years, with two children.
• Assets: Family home worth HK$12m, savings of HK$2m, husband’s pension HK$3m.
• Wife is the primary caregiver and earns HK$15,000/month. Husband earns HK$60,000/month.
  The court may divide assets close to 50/50, but ensure the wife and children have secure housing, possibly transferring the home to the wife with husband receiving more pension/savings to balance.

Key Takeaways

• Hong Kong does not have a rigid formula – division is based on fairness and needs.
• The court often starts at 50/50, but may adjust based on circumstances.
• Both financial and non-financial contributions are equally valued.

Need advice on dividing assets in divorce?

Every divorce is different. Our experienced family lawyers can:

• Assess your financial situation and likely court outcome
• Help negotiate a fair property and asset settlement
• Protect your interests in Family Court if needed

 Contact us today to get expert legal advice and secure your financial future after divorce.