PDSL9 Pilot Scheme on Private Adjudication of Financial Disputes in Matrimonial and Family Proceedings

PRACTICE DIRECTION – SL9

PILOT SCHEME ON PRIVATE ADJUDICATION OF FINANCIAL
DISPUTES IN MATRIMONIAL AND FAMILY PROCEEDINGS

A. Introduction

1. A pilot scheme on private adjudication of financial disputes as a new mode of alternative dispute resolution (“ADR”) in Matrimonial and Family Proceedings, as defined in Practice Direction 15.12, has been introduced since 19 January 2015.

2. One of the main objectives of the Rules of the High Court and the Rules of the District Court is to facilitate the settlement of disputes between the parties.  This objective is equally applicable to Matrimonial and Family Proceedings.

3. The currently available modes of ADR include Family Mediation under Practice Direction 15.10, Financial Dispute Resolution under Practice Direction 15.11, and Children’s Dispute Resolution under Practice Direction 15.13.

4. Nothing in this Practice Direction shall affect the current modes of ADR as stated in the above Practice Directions.

5. The Judiciary has considered proposals from practitioners on a new mode of ADR, namely private adjudication of financial disputes in Matrimonial and Family Proceedings (“Private Financial Adjudication” otherwise known as “PFA”).  The Judiciary agrees that such a new mode of ADR will further the objective of settlement facilitation.

6. This Practice Direction sets out the procedures of the Pilot Scheme on Private Financial Adjudication (“Pilot Scheme”).

7. The “Court” shall mean the Family Court, as defined in Practice Direction 15.12, or the Court of First Instance of the High Court.

8. The initial phase of the Pilot Scheme took effect from 19 January 2015 to 18 January 2018.  It was extended for 3 years from 19 January 2018 to 18 January 2021 at the request and with the support of the legal profession and the agreement of all members of the Working Group on Private Financial Adjudication, and was further extended from 19 January 2021 to 18 January 2024 with the support of the Family Proceedings Court Users’ Committee.

9. The first private adjudication took place in May 2020 with a decision delivered by the adjudicator in July 2020.  The parties accepted the decision and the Family Court made an order based on that decision.  Upon review of the development in private adjudication in Hong Kong including the meaningful progress of training and the accreditation of private adjudicators, the Pilot Scheme was extended for 2 years from 19 January 2024 to 18 January 2026.  It will be further extended for another 2 years from 19 January 2026 to 18 January 2028.  At the end of the extended period, there will be a further review of the scheme.

B. Applicability

10. PFA procedures are applicable to the following proceedings:

(1) An application for ancillary relief, other financial orders and/or financial relief under Part II and Part IIA of the Matrimonial Proceedings and Property Ordinance, Cap.192;

(2) An application for maintenance and/or financial orders under the Guardianship of Minors Ordinance, Cap.13;

(3) An application under s.3 of the Separation and Maintenance Orders Ordinance, Cap.16 for an order for payments under s.5(1)(c), (d), (e) and s.9 of the same ordinance;

(4) An application for financial provision under the Inheritance (Provision for Family and Dependants) Ordinance, Cap. 481;

(5) Any other applications of a financial nature in Matrimonial and Family Proceedings to which the Court agrees that the procedures should apply; and

(6) An application for costs in respect of any of the above applications or proceedings.

11. For the avoidance of doubt, the procedures will not apply to:

(1) Proceedings for a Matrimonial Cause, as defined in s.2 of the Family Procedure Ordinance, Cap. 646;

(2) Any disputes on children’s custody, care and control, access, education or upbringing; and

(3) Any other proceedings not covered by paragraph 10 above.

C. Procedures

Prior to the PFA

12. Unless there is a good reason for taking an exceptional course, a PFA should only take place after the exchange of Form E.

13. Before engaging in a PFA, parties should consider participating in Family Mediation and/or Financial Dispute Resolution(“FDR”)/Mediator-assisted Financial Dispute Resolution(“MFDR”).

14. Prior to any PFA taking place, the parties (including third parties, if any) shall sign an unequivocal agreement in the presence of witnesses (“PFA Agreement”) and such an agreement shall contain the following terms:

(1) All parties are legally represented and each of them has obtained adequate and independent legal advice on the nature, implications, procedures and the issue of confidentiality concerning the PFA;

(2) Whether the parties have attended Family Mediation or FDR/MFDR, and if not, why not;

(3) The scope of the PFA agreed to by the parties, namely whether the PFA includes all issues, or only one particular issue of the financial dispute;

(4) Within 14 days of signing the agreement, all parties shall jointly make an application by way of a consent summons to the Court to seek:

(i) Approval to the appointment of the agreed private adjudicator;

(ii) Approval to the commencement of the PFA; and

(iii) Upon the above approvals being granted, if appropriate, a stay of all or part of the proceedings between the parties pending the PFA;

(5) All parties agree to the appointment of a private adjudicator approved by the Court;

(6) All parties agree to be bound by the decision(s) of the private adjudicator whether in terms of procedures or the adjudication, which shall be final subject only to the overriding discretion of the Court as provided in sub-paragraph (8) below;

(7) All parties agree to submit a consent summons within 14 days upon receipt of the decision of the private adjudicator in the PFA, embodying the terms of the decision, for the Court’s approval;

(8) All parties understand that the Court shall have an overriding discretion as to whether, and in what terms, to make any order(s) embodying the decision and the parties agree to take all necessary steps to see thatsuch orders are made; and

(9) The applicant for financial relief agrees to submit a PFA report in the format of the specimen form attached to this Practice Direction (“PFA Report”) to the Court within 14 days after the completion of the PFA process.   If both parties have such an application for financial relief, the Petitioner/Applicant in the Matrimonial or Family Proceedings agrees to submit such a PFA Report.  

15. Within 14 days of signing the PFA Agreement, all parties shall jointly make an application by way of a consent summons to the Court to seek:

(1) Approval to the appointment of the agreed private adjudicator;

(2) Approval to the commencement of the PFA; and

(3) Upon the above approvals being granted, if appropriate, a stay of all or part of the proceedings between the parties pending the PFA.

16. The application for the Court’s approval for the PFA and the private adjudicator shall be accompanied by a copy of the signed PFA Agreement and a memorandum setting out the particulars of the agreed private adjudicator, and the following information (“the Memorandum”):

(1) the identity, experience, qualifications and fees of the proposed private adjudicator; the proposed private adjudicator should be sufficiently experienced in financial litigations pertaining to Matrimonial and Family Proceedings;

(2) the agreement of the private adjudicator to adjudicate the substance of the dispute in accordance with the laws of Hong Kong;

(3) a timetable of the PFA process; and

(4) undertakings by the parties to comply with the timetable and to report jointly to the Court upon conclusion of the PFA.

17. Upon being satisfied that the case is suitable for PFA, the Court may grant a stay of all or part of the proceedings for a period of time as it deems fit.  The initial period of stay of proceedings may be extended upon sufficient grounds being shown.

18. For the avoidance of doubt, nothing as stated above shall affect the timetables set out in Practice Direction 15.11 and/or any directions/orders made in the proceedings until and unless a stay has been granted by the Court.

During PFA

19. Notwithstanding the granting of a stay of proceedings pending PFA, any party is at liberty to apply to the Court for further directions in aid of the PFA or otherwise, if necessary.

Post PFA

20. Within 14 days from the handing down or delivery of a decision by the private adjudicator, the parties shall jointly make an application by way of a consent summons attached with a draft consent order embodying such decision to seek the Court’s approval to the terms of the draft consent order, failing which within 14 days thereafter, any party to the proceedings can apply to the Court for further directions, including any direction for the party who fails to sign the consent summons, to show cause as to why that party should not be bound by the decision(s) of the private adjudicator[1].

21. Nothing contained in this Practice Direction shall affect the Court’s overriding discretion as to whether, and in what terms, to make any order(s) embodying the decision, and the parties shall take all necessary steps to see that such orders are made.

22. The parties’ agreement, properly and fairly arrived at with competent legal advice, will be respected unless there are good and substantial reasons for concluding that an injustice would be done by holding the parties to it.

23. Within 14 days from the completion of the PFA process, the applicant for financial relief shall submit the PFA Report to the Court.   If both parties have made an application for financial relief, it shall be the duty of the Petitioner/Applicant in the Matrimonial or Family Proceedings to submit such a PFA Report.

D. Specimen Forms

24. The PFA Agreement, the Memorandum and the PFA Report shall contain the terms/information as set out in the specimen forms attached to this Practice Direction, with adaptations and/or additional terms and/or information deemed necessary by the parties.

25. The following specimen forms are attached to this Practice Direction:

(1) Specimen of the PFA Agreement: Appendix 1;

(2) Specimen of the Memorandum: Appendix 2; and

(3) Specimen of the PFA Report: Appendix 3.

E. Commencement Date

26. This Practice Direction will take effect on 9 January 2026 and supersede the previous Practice Direction SL9 on Private Adjudication of Financial Disputes in Matrimonial and Family Proceedings dated 18 December 2023.

 Dated this 23^rd day of December 2025.