Li Kong v Cheng Lai Nar: Division of Matrimonial Assets & Maintenance

In the case of Li Kong v Cheng Lai Nar, before the High Court of Singapore on 2005-09-01, the husband appealed against the District Judge's decision on ancillary matters arising from divorce proceedings, including the division of matrimonial assets and maintenance for the wife and children. The High Court allowed the appeal in part, adjusting the division of assets, setting aside the order for the transfer of the Bukit Panjang flat to the wife free of consideration, and reducing the children's maintenance. The court ordered the sale of the flat and equal division of net proceeds, and adjusted the amounts each party owed to the other based on recalculated contributions and unaccounted sums.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed in part.

1.3 Case Type

Family

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding division of matrimonial assets and maintenance after divorce. The court adjusted the asset division and maintenance orders.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Li KongAppellantIndividualAppeal allowed in partPartialLi Kong
Cheng Lai NarRespondentIndividualPartial WinPartialEllen Lee

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Li KongIndependent Practitioner
Ellen LeeEllen Lee and Co

4. Facts

  1. The husband and wife grew up in Hong Kong and married in May 1989.
  2. The parties bought an apartment in Hong Kong in September 1989 and sold it in March 1991 before migrating to Singapore.
  3. The parties arrived in Singapore on 14 April 1991 with approximately $100,000 from the sale of the Hong Kong flat and savings.
  4. The couple bought a flat in Yishun Ring Road in September 1991 and later sold it in June 1998.
  5. The parties purchased the Bukit Panjang flat on 1 February 1998.
  6. The wife claimed the husband under-declared his income and kept cash savings at home.
  7. The husband claimed the wife wrongfully sold shares belonging to his father.

5. Formal Citations

  1. Li Kong v Cheng Lai Nar, D 600357/2003, RAS 720117/2004, [2005] SGHC 164

6. Timeline

DateEvent
Wife started working for Juki (Hong Kong) Ltd.
Wife was promoted at Juki, increasing her salary.
Parties married in Hong Kong.
Parties bought an apartment in Hong Kong.
Parties' first child, a daughter, was born.
Wife left Juki and found a new job.
Hong Kong flat was sold.
Parties arrived in Singapore.
Wife started working as an assistant merchandiser.
Husband accepted an offer from Asia Radio Singapore Pte Ltd.
Couple bought a flat in Yishun Ring Road.
Husband left Asia Radio.
Husband’s mother brought their daughter to Singapore.
Wife opened a share trading account with Philips Securities Pte Ltd.
Husband opened a sole account with the Post Office Savings Bank Ltd.
Husband joined Kosmo Poultry Industries Pte Ltd.
Husband asked the wife to buy some Singapore Bus Service shares.
Wife's family migrated to Singapore.
Husband joined Hup Heng Poultry Industries Pte Ltd.
Wife obtained a Personal Protection Order against the husband.
Wife sold the Singapore Bus Service shares.
Parties sold the Yishun flat.
Husband withdrew $62,800 from the joint OCBC account.
Husband started a business venture with Hup Heng Poultry Industries Pte Ltd.
Husband withdrew $50,693 from joint OCBC account.
Husband withdrew $62,800 from joint OCBC account.
The fixed deposits were withdrawn and the principal and interest were re-deposited into the 1994 POSB account.
The Comptroller of Income Tax queried the husband on his claims for expenditure incurred in respect of the commissions earned.
Poultry business dropped by 30% due to the outbreak of bird flu.
Husband’s basic salary was reduced to $1,668 per month.
Wife disposed of all her shares.
Marriage broke down.
Food industry was hit by the outbreak of SARS and Hup Heng’s business had dropped by 50%.
Government imposed a ban on live poultry from Malaysia.
Ban on live poultry from Malaysia was partially lifted.
Effective date for maintenance payments ordered by the District Judge.
Husband started dealing in ducks again.
Wife started work.
Judgment reserved.

7. Legal Issues

  1. Division of Matrimonial Assets
    • Outcome: The court adjusted the division of assets, setting aside the order for the transfer of the Bukit Panjang flat to the wife free of consideration. The court ordered the sale of the flat and equal division of net proceeds.
    • Category: Substantive
    • Sub-Issues:
      • Tracing of direct financial contribution to assets
      • Valuation of assets
      • Accounting for unaccounted funds
  2. Maintenance for Wife and Children
    • Outcome: The court reduced the children's maintenance and upheld the lump sum maintenance for the wife.
    • Category: Substantive
    • Sub-Issues:
      • Quantum of maintenance
      • Effect of external circumstances on income
      • Lump sum maintenance

8. Remedies Sought

  1. Adjustment of maintenance orders
  2. Division of matrimonial assets
  3. Reimbursement for shares sold

9. Cause of Actions

  • Division of Matrimonial Assets
  • Maintenance

10. Practice Areas

  • Divorce
  • Family Law
  • Appeals

11. Industries

  • Poultry

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Matrimonial assets
  • Maintenance
  • CPF
  • Bukit Panjang flat
  • Yishun flat
  • Share trading account
  • Seed money

15.2 Keywords

  • Divorce
  • Matrimonial Assets
  • Maintenance
  • Family Law
  • Singapore
  • Appeal

16. Subjects

  • Family Law
  • Divorce
  • Ancillary Matters
  • Division of Matrimonial Assets
  • Maintenance

17. Areas of Law

  • Family Law
  • Maintenance
  • Matrimonial Assets
  • Division of Assets