Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 26 September 2015.
Romeo and Juliet met each other later in life. Romeo was divorced many years ago and Juliet was widowed. After dating for several months, Romeo moved into Juliet’s home and soon after, Romeo’s son moved into Juliet’s spare room. During their relationship, Romeo performed regular maintenance and repairs to Juliet’s house.
12 years later, their relationship breaks down and Romeo commences action in the family law court, seeking an order that he receive half of the parties’ assets, including a substantial interest in Juliet’s home.
Romeo and Juliet could not reach an agreement between themselves and the matter proceeded to a hearing.
The court heard that Romeo did not pay rent during the relationship and that although they anticipated living together for the rest of their lives, they never planned to have an interest in each other’s property.
At the commencement of their relationship, Romeo owned a vacant block of land, which remained in his sole name when their relationship broke down. They did not own any other real estate jointly.
During their relationship, Romeo and Juliet also kept their financial affairs separate which included operating separate bank accounts and never operating a joint account.
The court found that Romeo’s work on Juliet’s property did not increase the value of her property and after considering the age and health of the parties, ruled that they both had assets in their sole names that were sufficient to meet their future needs.
The court noted the content of their wills, which left no provision for each other and left the whole of their estates to their respective children.
The court ultimately dismissed Romeo’s claim, stating that it would not be “just and equitable to make an order altering their property interests”.
Unfortunately for Juliet, the court ruled that both parties were liable to pay their own substantial legal costs.
Juliet’s solicitor advises her that if she had entered into a binding financial agreement (previously known as a prenuptial agreement), she may have prevented Romeo’s ill-fated claim and avoided the legal costs involved.
