Hypothetical by Manny Wood published in the Coffs Coast Advocate on 30 May 2020.
Nina and Harry have been in a relationship for 25 years. They have two teenage daughters.
During their relationship, Harry worked as a labourer and Nina worked full-time before the children were born and then returned to part-time employment. Nina receives an inheritance of $500,000 from her parent’s estate.
Nina and Harry live in Nina’s unencumbered home until their relationship breaks-down and they separate. Harry moves-out and Nina continues to reside in the matrimonial home with their daughters.
Shortly after their separation, Nina receives an inheritance of $2 million from her Aunt’s estate.
Nina purchases two motor vehicles totalling $200,000 and goes on an overseas holiday with the children.
Harry commences action in the Federal Circuit Court seeking property settlement orders in his favour, including a substantial payment from Nina’s inheritance.
The Court hears that their joint assets total $3 million, including a small amount of super in each of the party’s names.
Nina seeks to “quarantine” the whole of her inheritance from Harry’s claim, arguing that Harry made no “contribution” to the funds received from her Aunt’s estate.
The Court notes that Nina is nine years older than Harry and that the parties were in a “long relationship”.
Harry argues that the inheritance constitutes the bulk of their joint assets and that it should be included in his claim in light of the “myriad” of different contributions he made during the course of their relationship.
Ultimately, the Court awards Harry $750,000 from Nina’s inheritance on the basis that Nina retains the matrimonial home and the balance of their assets. They both keep their own superannuation.
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.
