Published in the Coffs Coast Advocate on 9 May 2015.
Jim and Jane have been married for 23 years and have 3 children together. They accumulated substantial assets during their marriage but after their relationship breaks down, a dispute arises as to how their assets are to be divided. Jane commences action in the Family Court of Australia.
Jim argues that he should be entitled to a larger share of their assets because he owned real estate before their relationship commenced and also had an interest in the family plumbing business. He states that he became the sole owner of the family business just 5 years into the relationship and that these “initial contributions” should be recognised.
Jim also informs the court that just 2 years before he and Jane separated, Jim received an inheritance from his mother’s estate of $1.2 million in both real estate and cash. The court notes that the inheritance forms approximately 25% of Jim and Jane’s total assets.
Jim seeks an order from the court that the inheritance be excluded from the pool of assets that is to be divided or alternatively, that in the circumstances, Jane is only entitled to 30% of all of the assets.
The court hears that the plumbing business has been very successful, currently employing 20 employees.
The court orders that in circumstances where Jim and Jane have been married for almost 25 years, that the inheritance should not be excluded from the pool and chooses to adopt an “global” approach to the division of their assets.
The court finds, after considering the contributions by Jane as homemaker, that Jim’s contributions totalled 68% of the total matrimonial pool.
The court then finds that it is proper to make a further 8% adjustment in Jane’s favour due to the fact that she has the sole care of their 16-year-old daughter and also due to the fact that health problems and the lack of experience in the workplace will affect her ability to earn an income.
The court ultimately finds that it is “just and equitable” to award 60% of all their assets to Jim and 40% of their assets to Jane.
