NK v NL: Appeal on Valuation of Matrimonial Assets (TFI) After Divorce

In the case of NK v NL, the Court of Appeal of Singapore addressed applications arising from a prior judgment concerning the division of matrimonial assets, specifically the valuation of several companies (TFI). The husband disputed the valuation of TFI conducted by KPMG, arguing it should have been based on net asset or liquidation value rather than a going concern basis. The wife sought to compel the husband to pay her share of the TFI value as determined by KPMG. The court dismissed the husband's appeal, upholding KPMG's valuation but adopting the lower end of the valuation range. The husband was ordered to pay the wife 60% of the lower limit of KPMG's valuation of TFI in quarterly installments.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal dismissed; husband ordered to pay wife 60% of the lower limit of KPMG's valuation of TFI in quarterly installments.

1.3 Case Type

Family

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding the valuation of matrimonial assets (TFI) after divorce. The court upheld the KPMG valuation but adopted the lower end of the valuation range.

1.7 Decision Date

31 August 2010

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
NK	Appellant	Individual	Appeal Dismissed	Lost	Luna Yap Whye Tzu of Luna Yap & Co
NL	Respondent	Individual	Judgment for Respondent	Won	N Sreenivasan of Straits Law Practice LLC Ramesh Bharani Nagaratnam of Straits Law Practice LLC

3. Judges

Judge Name	Title	Delivered Judgment
Chan Sek Keong	Chief Justice	Yes
Andrew Phang Boon Leong	Justice of the Court of Appeal	No
Andrew Ang J	Judge	No

4. Counsels

Counsel Name	Organization
Luna Yap Whye Tzu	Luna Yap & Co
N Sreenivasan	Straits Law Practice LLC
Ramesh Bharani Nagaratnam	Straits Law Practice LLC

4. Facts

The parties were undergoing divorce proceedings.
The Court of Appeal previously ordered the valuation of TFI as part of the matrimonial assets.
The parties could not agree on a valuer, and the court appointed KPMG.
KPMG issued a valuation report stating the value of TFI to be between $2.22m and $2.43m.
The husband disputed KPMG's valuation, arguing it should have been based on net asset value or liquidation value.
The wife sought to compel the husband to pay her share of the TFI value as determined by KPMG.

5. Formal Citations

NK v NL, Civil Appeal No 86 of 2006, [2010] SGCA 32
NK v NL, , [2007] 3 SLR(R) 743

6. Timeline

Date	Event
2004-01-01	Dispute between the parties first came before the courts
2007-01-01	Court Order made in NK v NL [2007] 3 SLR(R) 743
2007-10-23	KPMG Singapore appointed as valuer
2008-11-14	Order authorizing KPMG to investigate financial records of TFI
2010-01-18	KPMG issued its final valuation report
2010-02-12	FH issued report commenting on KPMG’s valuation
2010-09-01	Judgment reserved

7. Legal Issues

Valuation of Matrimonial Assets
- Outcome: The court upheld KPMG's valuation but adopted the lower limit of the valuation range.
- Category: Substantive
- Sub-Issues:
  - Appropriateness of valuation methodology
  - Manifest errors in valuation
- Related Cases:
  - [2007] 3 SLR(R) 743

8. Remedies Sought

Revaluation of TFI
Order compelling payment of share of TFI value

9. Cause of Actions

No cause of actions

10. Practice Areas

Divorce
Matrimonial Assets Division
Appeals

11. Industries

No industries specified

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
NK v NL	Court of Appeal	Yes	[2007] 3 SLR(R) 743	Singapore	The main judgment from which the present proceedings arise, establishing the initial orders for division of matrimonial assets.
Tan Yeow Khoon and another v Tan Yeow Tat and others	N/A	Yes	[2003] 3 SLR(R) 486	Singapore	Cited by the husband's counsel regarding the court's intervention when a court-appointed valuer does not act in accordance with the terms of reference or if the valuation is manifestly in error.
Riduan bin Yusof v Khng Thian Huat and another	N/A	Yes	[2005] 2 SLR(R) 188	Singapore	Cited by the husband's counsel regarding the court's intervention when a court-appointed valuer does not act in accordance with the terms of reference or if the valuation is manifestly in error.
Hoban Steven Maurice Dixon and another v Scanlon Graeme John and others	N/A	Yes	[2005] 2 SLR(R) 632	Singapore	Cited by the husband's counsel regarding the court's intervention when a court-appointed valuer does not act in accordance with the terms of reference or if the valuation is manifestly in error.
Evergreat Construction Co Pte Ltd v Pressscrete Engineering Pte Ltd	N/A	Yes	[2006] 1 SLR(R) 634	Singapore	Cited by the husband's counsel regarding the court's intervention when a court-appointed valuer does not act in accordance with the terms of reference or if the valuation is manifestly in error.
The Oriental Insurance Co Ltd v Reliance National Asia Re Pte Ltd	N/A	Yes	[2009] 2 SLR(R) 385	Singapore	Cited by the husband's counsel regarding the court's intervention when a court-appointed valuer does not act in accordance with the terms of reference or if the valuation is manifestly in error.
Hatrick v Commissioner of Inland Revenue	N/A	Yes	[1963] NZLR 641	New Zealand	Cited by the husband's counsel regarding the method of valuation of shares that are not traded on the open market.
Mallet v Mallet	N/A	Yes	(1984) 156 CLR 605	Australia	Cited by the husband's counsel regarding the method of valuation of shares that are not traded on the open market.
Jones (M) and Another v Jones (RR) and Another	N/A	Yes	[1971] 1 WLR 840	England and Wales	Cited by the husband's counsel regarding the rejection of a valuation that is erroneous in principle.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

Matrimonial Assets
Valuation
TFI
KPMG
Going Concern Basis
Net Asset Value
Liquidation Value
Control Premium
Discount on Lack of Marketability
EBITDA

15.2 Keywords

divorce
matrimonial assets
valuation
appeal
family law

17. Areas of Law

Area Name	Relevance Score
Matrimonial Assets	95
Division of Matrimonial Property	95
Family Law	90
Valuation	70
Costs	30

16. Subjects

Family Law
Divorce
Matrimonial Assets
Valuation