With over HK$1.35 trillion under the MPF system, the division of retirement assets is increasingly significant in ancillary relief proceedings. This article discusses how Hong Kong courts approach the valuation and division of these assets, considering factors such as the duration of marriage, pre/post-separation accrual, and the illiquid nature of pension benefits. Unlike the UK and Australia, Hong Kong lacks a unified statutory framework, leading to varying court approaches and outcomes.

The authors advocate for legislative reform to codify key principles, tailor provisions for different pension schemes, and offer clearer guidance on applying illiquidity discounts. Such measures would enhance fairness, transparency, and predictability for divorcing parties navigating complex asset division.

The full article is available on Lexology.

Co-authored by Becky So at Pantheon Chambers and Adrian Au at Tanner De Witt

For more information about Becky, please visit here.