Case Update: – Creditor vs Family Interests in Divorce Battles

Sabrina Leung, instructed by Gloria Chan & Co, acted for the intended intervener NRCL, a moneylender seeking to assert an interest in the matrimonial home of the parties in ongoing divorce proceedings.

NRCL applied to be joined to the ancillary relief proceedings, arguing its charging order over the property was closely tied to the Family Court’s determination of property rights. After considering the interconnected issues and the need to balance the interests of the creditor with those of the family, Judge Elaine Liu granted the joinder application, holding that the Family Court was the appropriate forum to adjudicate all relevant interests together for efficiency and fairness.

The judgment highlights that third-party creditors may be joined in matrimonial proceedings relating to family assets where their rights are directly engaged by the outcome.

The judgment for SQW v LPC [2025] 2 HKLRD 649 can be found here.