How are assets divided in a Hong Kong divorce?

There is no fixed formula. The Family Court has wide powers to divide property, savings, pensions, and other assets. The guiding principle is fairness, based on section 7 of the Matrimonial Proceedings and Property Ordinance (Cap. 192).

What factors does the court consider in asset division?

The court looks at all the circumstances of the case, including:

• Income, property, and financial resources of both spouses
• Financial needs and obligations (including children’s needs)
• Standard of living during the marriage
• Age of each spouse and the duration of the marriage
• Any disability
• Contributions made by each spouse (financial and non-financial, e.g. homemaking or childcare)
• Loss of benefits such as pensions

Is everything always split 50/50 in divorce?

Not always. In LKW v DD (2010 CFA), the Court of Final Appeal confirmed that fairness is the goal, not strict equality. Courts often start with a yardstick of equality (50/50) but may adjust depending on the facts, such as short marriages, inherited property, or special contributions.

What is the “five-step test” from LKW v DD?

The Court of Final Appeal set out a five-step approach:

1. Identify all the assets.
2. Assess the needs of both spouses and children.
3. Apply the “sharing principle” if there are surplus assets.
4. Consider whether there are good reasons to depart from equal division.
5. Decide the final outcome and explain why.

Do homemakers get treated equally in asset division?

Yes. The law recognises that homemakers and breadwinners contribute equally to the marriage. A spouse who cared for the children and household is treated as having made contributions just as valuable as financial earnings.

What happens to the family home in a divorce?

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

Are pre-marital or inherited assets included in division?

Sometimes. Assets acquired before marriage, or gifts/inheritances, may be treated as non-matrimonial property. However, if these assets were used for family purposes (e.g. to buy the home), they are usually included in the matrimonial pool.

How are assets divided in high-value divorces?

In “big money” cases, courts often apply equal sharing unless there are exceptional reasons to depart, such as a very short marriage or one spouse making a “special” contribution.

Example of asset division in Hong Kong

• Married for 15 years with two children.
• Assets: family home (HK$12m), savings (HK$2m), pension (HK$3m).
• Husband earns HK$60,000/month; wife earns HK$15,000/month and is the main caregiver.
  The court may divide assets close to 50/50, but give the wife and children the family home for stability, while balancing with other assets for the husband.

Key Takeaways

• Hong Kong divorce asset division is based on fairness, not fixed rules.
• Courts often start at 50/50 but adjust based on needs, contributions, and circumstances.
• Both financial and non-financial contributions are equally valued.

Need help with asset division after divorce in Hong Kong?

Our experienced family law team can:

• Explain your rights and likely outcome clearly
• Negotiate fair financial settlements
• Represent you in Family Court if needed

Contact us today to protect your assets and secure your financial future after divorce.