The Hong Kong Government has effected a new law that allows the Courts to order financial relief to a former spouse whose marriage has been dissolved outside the city.

The new law was introduced following the controversial ML v YJ case, which highlighted a loophole in the Hong Kong legal system preventing the courts from granting financial provisions to the wife as the divorce had already been recognised in Shenzhen. The case reached the Hong Kong Court of Final Appeal which, in December 2010, decided to recognise the Shenzhen ruling.

As seen in other jurisdictions such as the UK, divorce law - such as the issue over whether pre-nuptial agreements should have force of law - is an important issue for high net worth individuals, given the size of assets at stake in some divorce cases.

"[The case] was a classic example of forum shopping, where a spouse decides to file for a divorce at a jurisdiction that will give a more favourable result. Hong Kong was shown to be more generous than China for the economically weaker divorcing party. This new law will help even the playing field a little and ensure that regardless of where the divorce took place the Hong Kong courts can still order financial relief if it is warranted," Marcus Dearle, head of international law firm Withers in Hong Kong, said in a statement.

The new law is called Part IIA of the Matrimonial Proceedings and Property Ordinance.