When Divorce Is A Bad Idea

Category Archives: Legal Costs

When Divorce Is A Bad Idea

Determining whether to move forward with a divorce is a decision that needs to be made wisely and should be made based on legitimate reasoning. Divorce is a long, emotional process and the decision to divorce should not be taken lightly or made impulsively. It is important to note that there is always time to change your mind, even if the divorce train is well on its way. Regardless of your situation, it is always a good option to work on the relationship before making a final decision to divorce, especially if the following applies:

1. You waiver about divorce: If you waiver over whether to divorce or not, it is better to err on the side of caution and try working on the relationship before opting for divorce. When you waiver, it perhaps it is a sign that there remains confusion over whether this is the best decision for you and your family and there is still an attachment to the idea of remaining in the relationship.

2. You have not yet thought through the entire process: If you have not thought through the entire process of divorce, you may not be ready for a divorce. It is important to do things such as: thinking through the entire process includes reading articles and books that outline what you can expect in a divorce and also talking to friends about their experiences in a divorce can also help you through the process. Making an appointment with experts like your financial planner may also be a good idea so you know what your financial picture will look like in a divorce. What about your children and how it will affect them? Would you move and if so, what schools would your children be enrolled in if you and your spouse divorce? Will your spouse agree with your decision to move because if he/she does not agree, it could turn into a very litigious and expensive divorce. And most importantly, do you still love your spouse? Imagine a life without this person and go from there.

3. You and your spouse are willing to try counseling: It is important that before you make a final decision to divorce, that you and your spouse have exhausted all avenues of repairing your relationship. One option to assist and heal your relationship is through counseling, whether it be individual therapy or couples therapy. It is important to remember though, that therapy is not a quick fix for your relationship, but it requires time, energy and financial investment. Thus, you and your spouse need to be willing to put in the time and effort in therapy to try and make the relationship work.

The decision to divorce should not be taken lightly since it will be a life-altering event. Consider some of the key points outlined above and make sure you make an informed, rational decision before taking this course of action.

Potential Risks When Litigating Relocation in Divorce

For our last installment in this three-part relocation series, we are going to explore the potential risks that you may face when you decide to litigate a relocation application in the Family Court in Hong Kong. Generally speaking, it is always a better option to come to agreements with your ex-spouse rather than litigate matters in the Family Court. However, it is sometimes an impossibility you’re your ex-spouse is not reasonable and/or not willing to resolve matters outside of Court, whether it be agreements made directly with one another or through mediation. Relocation is a heated discussion between divorcing couples if there is no agreement. Thus, let’s look at some of the potential risks you should consider before you proceed and make your case before a judge. Bear in mind that these are only “potential” risks and each outcome will depend on the circumstances of your case and the judge deciding the outcome.

1. Less Time With Your Children: In our previous article, we explained that if you file an application in bad faith (eg. To alienate the other parent from the children) and this is revealed to the judge, you may expose yourself to a change in your custody and visitation orders. Thus, it is extremely important that the focus of your relocation application is the welfare of your child. A relocation application should never be filed to cause a rift or disrupt the bond between your ex-spouse and your child.

2. Money and Time Spent: A relocation application is not a quick and easy process. You may find yourself waiting for months before you are heard before the Family Court and once the process begins to move through the Court process, it could take significant time before an order is made by the judge. Moreover, solicitor and barrister fees and costs will also pile up rather quickly and you should anticipate having to pay significant fees to litigate your matter.

3. Psychological Damage: There is no definitive evidence to suggest that a relocation will have any psychological impact on your children, but there is some research out there that suggests it could have a long-term impact on a child’s psychology. This is definitely something to consider and watch out for. Look for signs of stress and anxiety in your child. Think about what kind of effect this might have long-term knowing your child’s unique personality and bond with the other parent. If anything, a relocation could potentially cause more distress than the usual divorce due to your child being uprooted.

4. Hague Convention Risks: In the event that you make a unilateral decision and you move your child to another country without consent or a court order, you will be subject to The Hague Convention on the Civil Aspects of International Child Abduction. It is considered child abduction if you wrongfully remove a child from their home state. Fleeing Hong Kong without written consent by the other parent or court order is risky business and you should seriously reconsider your decision and you should consult with a solicitor who can inform you of all the risk.

Being prepared will help you overcome any obstacles you may face in a relocation application before the Hong Kong court and should be taken seriously to avoid any significant adverse repercussions upon yourself or the children.

Finding The Right Solicitor In A Divorce

When a decision is made to divorce, you are forced to become familiar with the legal world and what may seem like, a legal minefield. This is not an easy task given the legal jargon and technicalities involved in filing for divorce and navigating it until the end. Whilst some couples attempt to navigate the legal process on their own, others choose to hire legal representatives (solicitors and barristers) to assist them and take charge of the legal process. Finding legal representation should not be taken lightly because your relationship with your solicitor will last for a significant period of time and may even extend beyond the actual divorce if there are post-divorce issues to be ironed out.
Here are tips on what to look for when searching for the right divorce solicitor:

1. Do Your Research: Before you decide on a solicitor to assist with your divorce, conduct your own research on who you might want to hire. Conduct an online search and see if any articles or reviews have been posted about the solicitor or his/her law firm. Take your research outside of the Web and ask friends or extended family for a referral. Word of mouth is a great resource. By chatting with others in your community, you will get a better sense of the solicitor’s reputation in the community and whether he/she will be a good fit for you and what you are hoping to achieve in your divorce. Some solicitors have a more aggressive approach to divorce, whilst others are more mediation/settlement minded. You should consider how you want to approach your divorce and your goals and whether it aligns with your solicitor. You should also consider the financial impact a divorce will have on the matrimonial pot and approach your solicitor with that in mind as legal fees will skyrocket the more you litigate.

2. Ask Questions: Before you sign an engagement letter to hire your solicitor, do not be afraid to ask a lot of questions. How does the solicitor bill for his or her work? What is the solicitor’s hourly billing rate? Does the solicitor have assistants and paralegals? If so, will they be doing a significant portion of the work on your case? What are the hourly billing rates for assistants and paralegals working on your case? These questions are important because it will help you determine if you can afford the solicitor’s services going forward. Divorce is a long and expensive process. The initial retainer fee/costs on account will only get you so far and often, you can expect to pay additional fees and costs going forward. An initial meeting with the solicitor is also important because you can see if you and the solicitor are on the same page and whether your personalities gel together. This will be a long working relationship so it’s important that you and your solicitor work well together.

3. Don’t Be Afraid To Make Decisions: If you’ve hired a solicitor and come to find you are not happy with the relationship, do not be afraid to first discuss the issues you have with your solicitor in a transparent and frank conversation with your solicitor. If that is insufficient, then do not be afraid to change your solicitor and find a solicitor that is right for you. While you do not want to get into the habit of switching solicitors on a frequent basis, it is not unreasonable to change your representation when there is a true breakdown in the relationship between you and your solicitor. You may be hesitant to switch your solicitor after investing so much time and money, but remember you are likely to save more money in the long run with the right solicitor and get the results you desire with the right partnership.

Finding the right solicitor to handle your divorce is crucial. The right working relationship will determine the trajectory of your divorce, so make an informed decision before you navigate the legal landscape.

Spotlight Profile: Kyra Cornwall, Barrister, 1 Hare Court

In this Spotlight Profile, we are talking to Kyra Cornwall, Barrister at 1 Hare Court in London, England.  Kyra specializes in high profile matrimonial matters and has extensive experience working on family law matters involving international jurisdictions including Cayman Islands, Singapore, France, Russia and Hong Kong.

Kyra, it is such a pleasure to speak with you today as I know you run a very busy practice in London, England as Barrister to many high-profile matrimonial clients.  Kyra, this is your first spotlight profile here on Hong Kong Divorce, can you tell our readers more about yourself and the work that you do in the matrimonial arena in London? 

Thank you so much for inviting me. It’s a pleasure to be involved!

I am a Barrister practising at 1 Hare Court, the leading matrimonial finance set in England and Wales. We are based in the heart of legal London, in the middle of the Temple, and specialise in matrimonial finance cases. In my ten years at the Bar, I have developed a practice involving lots of international families, both representing them directly in England and Wales, and offering English advice where proceedings are taking place abroad.

Your practice extends to international jurisdictions.  Can you tell us the link that you have to matrimonial matters here in Hong Kong and your experience working on Hong Kong cases?

In 2017, I was awarded the Pegasus Scholarship by the Inns of Court which enabled me to spend that summer in Hong Kong working firstly at Withers then at Temple Chambers (with Richard Todd QC) and finally sitting in on cases at the Family Court with Her Honour Judge Melloy. The purpose of the scholarship is to enable lawyers to build their international awareness and forge links abroad. I had a particular interest in Hong Kong as my father’s family are from Hong Kong originally, and so had been looking for a way to develop international links on a professional basis as well as personally. That summer certainly gave me the ability to do both of those things.

Over the course of my stay, I was fortunate to meet a huge number of family law practitioners and was given a real insight into a legal system that is so similar to that in which I practise in the UK.  Since returning to the UK, I have maintained a Hong Kong focus to my work from London, continuing to advise on cases which include connections to Hong Kong.

Have you noticed any changes or differences in your practice as a result of Covid-19 and the ongoing pandemic?

Absolutely. When the pandemic hit in London, many practitioners were still working from hard copy papers and almost all court hearings were in person. Suddenly the courts were closed and the legal world had to take a giant leap into the 21st century. Within a matter of weeks, papers were being sent electronically and court hearings were taking place via video platform. Although there were some teething problems at the outset, in my view this has been transformative for life as a lawyer and at the Bar particularly.

Prior to the pandemic, a significant portion of my life was spent travelling to Court, waiting around at Court and travelling home again. Being able to operate remotely has virtually removed this, enabling people to work more efficiently and improving work life balance for practitioners.

Beyond this, for those cases involving parties based internationally or where a party has to travel a lot for work, the advent of video platform hearings has also made it much easier for them to be involved without disrupting their working lives so much.

That’s not to say that there have not been problems: there have been technical glitches along the way and there are difficulties when a party does not have more than one screen available to them, but for the most part I think that the pandemic has forced the legal profession to take positive steps that I hope will remain in place moving forward.

One of your areas of specialty is marital agreements.  Hong Kong follows the United Kingdom landmark decision as seen in Radmacher v Granatino [2010] UKSC 42.  Do you see the law evolving or changing in the future with respect to marital agreements in the UK? 

Since the landmark decision in Radmacher, the courts have had to grapple with the questions of whether the parties had all the information material to their decision(s) to enter into a marital agreement, whether each party intended that the agreement should govern the financial consequences of the marriage ending and whether in all the circumstances this is fair.

Whilst the 2010 decision was followed by the Law Commission report in 2014 which suggested that marital agreements should in essence be upgraded to “Qualifying Nuptial Agreements” – i.e. enforceable contracts – in an attempt to provide more certainty to parties, this has not been made into law.

The current approach in the English courts is to focus on the circumstances in which agreements were reached and where they leave the parties in real terms financially, based on all the circumstances of the case. The recent reported decisions demonstrate a reluctance for the court to uphold agreements which are unfair or which do not meet needs objectively (see for example Brack v Brack [2018] EWCA Civ 2862, Ipekci v McConnell [2019] EWFC 19, IU v OS [2020] EWFC 98). The existence of an agreement does not automatically drive a case into needs territory only; it is one of the factors that weighs in the balance. Equally, a lack of legal advice does not automatically render an agreement unfair (see for example Versteegh v Versteegh [2018] EWCA Civ 1050).

That said, anecdotally I would say that a marital agreement that, for example, excludes sharing or fixes provision, does often have the impact of reducing a party’s claim where otherwise they might achieve more.

In Hong Kong, we see many expatriate couples with questions on whether to file in Hong Kong versus their home countries.  What advice would you give to those individuals who have a connection to both Hong Kong and England & Wales in terms of jurisdiction in regards to their divorce?

If I were to meet with a new client who had the option of getting divorced in both Hong Kong and England & Wales, I would suggest that they take local advice in both jurisdictions before making a decision. Where the outcome is likely to be similar (as between Hong Kong and England & Wales), it is likely to come down to questions of practicality.

There is one change coming in England & Wales however that may benefit one or both parties. No fault divorce is due to be brought in from April 2022 (i.e. being able to get divorced without having to plead any allegations of blame). This will hopefully help to drive down tensions and therefore reduce some of the distress that divorce proceedings can bring.

There’s sometimes an ongoing belief that England is a better forum to divorce because of the higher potential in terms of ancillary relief (finances) and costs.  Is this true or is this simply a misconception?

Both England & Wales and Hong Kong adopt bespoke outcomes on divorce, applying the concept of sharing, and the homemaker is seen to contribute just as much as the breadwinner. On that basis, assets in both jurisdictions are divided on a sharing basis if needs are met. Yes, the numbers are big, but England & Wales and Hong Kong are broadly similar in their approach to outcome.

To that extent, whilst London has the reputation of being generous on divorce, I think that is more due to the system that we apply (i.e. very similar to that of Hong Kong) as compared to the rest of the world. Broadly the same principles apply between England & Wales and Hong Kong when dividing assets and awarding maintenance, but other factors will play into needs-driven outcomes, such as the cost of living, parties’ abilities to work (e.g. visa issues), and access to the courts (Hong Kong grants jurisdiction where parties have a “substantial connection” at the date of petition/application, England & Wales operates a more stringent test).

This was such an interesting chat Kyra, thank you so much for your time.  We look forward to having you on board again to discuss other interesting and key topics in the area of matrimonial law!

About Kyra: 

Kyra is a barrister at 1 Hare Court in London, England.  Kyra specializes in financial remedies, claims after foreign divorce, nuptial agreements and jurisdiction disputes.  She is a member of the Family Law Barrister Association (FLBA) and the Inner Temple.

Kyra is described as a “a star in the marking, super clever, slick, elegant and professional” and “a smiling assassin” by both clients and peers.

Kyra’s practice is concentrated on high profile and international matrimonial cases, specifically issues dealing with forum disputes, cases with international trust and company structures, cases with complex issues of enforcement, issues of privilege and cases involving the enforcement of nuptial agreements. She regularly represents husbands and wives in high value and prominent matters, both led and alone in the High Court. She advises clients nationally and internationally, from jurisdictions including the Cayman Islands, Singapore and France, and has a particular interest in cases with links to Hong Kong, having undertaken the Pegasus Scholarship there in 2017.

Kyra is a contributing author of Rayden and Jackson on Divorce and Matrimonial Matters, a comprehensive and key guide for family law practitioners

For more information about Kyra and her practice, you can visit her Chambers’ website:  https://www.1hc.com/people/kyra-cornwall/

 

 

 

Misconduct In Divorce

In what will be considered one of the most stressful times in an individual’s life, it is no surprise that many people behave badly during a divorce. It is a stressful life event, that many reckon to be on par with the death of a family member.  With that being said, it is important that if you are going through a divorce, your conduct throughout the proceedings is important and it could have an impact on your divorce.  To behave poorly is a reflection not only on your character but also affects the actual outcome of your divorce.

In a divorce, your conduct in the course of proceedings can be taken into account by the judge, although generally speaking misconduct during the proceedings is more properly dealt with in an adverse application for costs against you.

What are some examples of “bad behaviour” and misconduct in a divorce? Wanton dissipation/reckless dissipation of assets is one form of misconduct.  In KMD v PIB [2011] HKFLR 351, the husband was excessively spending on his lifestyle as well as his hobby of flying helicopters and this was taken into account by the court, resulting in HK$1.2 million being “added back” from his 50% shares into the matrimonial pot for division.  In MKKWH v RKSH [2013] HKFLR 540, the husband maintained three (3) other families over a period of years and post-separation the wife sought to add back an equivalent sum of monies that her husband had spent on his other families.  In this case, the Court of Appeal refused the wife’s application to add back these funds on the basis that the funds had been received post-separation. In A v B [2017] 1 HKLRD 187, the court held that payments to a girlfriend of HK$1.2 million was “wanton” and “reckless” and “extravagant” in view of the marital assets and the standard of living, and the court therefore added back into the matrimonial pot, the non-marital spending.

Material non-disclosure is another form of misconduct in litigation such as monies being hidden.  In SANK v PGN [2011] HKFLR 390, the court considered whether a husband’s non-disclosure and refusal to mediate should result in a costs award to the wife.  The court concluded that “[t]here are many reasons which may affect the court in considering costs, such as culpability in the conduct of the litigation; for instance material non-disclosure of documents.”  Parties to a divorce have a duty of full and frank disclosure and by failing to disclose, the courts will take this misconduct into consideration.

Another form of misconduct is a refusal to attempt to settle. In LWF v LMF [2015] HKFC 146, the wife’s failure to respond and attempt to negotiate was a relevant factor for the husband being awarded costs.  The same misconduct label is also attached to litigants who refuse to provide evidence and/or participate in proceedings such as filing necessary paperwork and/or attending court hearings.  By refusing to participate, the court will have no choice but to see the case as one-sided and only make decisions based on the actual evidence in front of the court.

The courts in Hong Kong have a duty to have regard to the conduct of the parties to a marriage.  Negative marital conduct can be detailed in sworn affidavits filed with the court and will be considered by the court as a material factor in allowing the court to depart from equality (See LKW v DD). However, it is to be noted that if there is a departure from equality, the courts will look for “obvious and gross” misconduct for it to be taken into account.