Hypothetical by Manny Wood Published in the Coffs Coast Advocate on 4 April 2020.

Charles and Mary have been married for six years. They have a six-year-old child. They reside in Mary’s home.

At the commencement of their relationship, Charles’ former de facto partner seeks a $100,000 payment by way of a property settlement. Charles borrows this money from Mary’s parents and pays the funds to his former partner. In return, he receives their former matrimonial home which he places on the market.

When the property is sold, the net proceeds of sale amount to $50,000. Charles uses the funds to purchase a Mercedes-Benz for $70,000. He borrows an additional $20,000 from Mary’s parents to meet the shortfall.

Charles loses his job and after three years of unemployment, his relationship with Mary breaks-down and they separate.

Charles commences action against Mary, seeking 30% of her assets.

At the time of the claim, Mary’s home is valued at $700,000. Both parties have $150,000 in superannuation. Mary’s vehicle is worth $30,000 and Charles’ Mercedes-Benz is now only worth $35,000.

The Court hears that Charles has re-partnered and is now employed. Charles pays $50 a week towards the care of their child, who resides with Mary.

The Court notes that there is a disparity between the parties in that Mary has substantially more assets than Charles. The Court also notes that Charles had used his redundancy payment to repay some of the loan to Mary’s parents and that he and Mary had operated a joint bank account.

Mary argues that during their relationship, Charles’ financial contribution barely covered his personal expenditure and that he only made small non-financial contributions by way of minor repairs around the home.

The Court hands-down its decision 9 months after the hearing, dismissing Charles’ application, stating that it is not just and equitable for orders to be made in his favour, with the effect that Mary’s assets are ultimately preserved.

If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.