Fancham & Ayrus [2022] FedCFamC2F 1431

Fancham & Ayrus [2022] FedCFamC2F 1431

Background Details

• Type of Relationship: Marriage
• Duration: Relationship commencement disputed (2011 or 2012), married in 2016, separation disputed (May 2019 or September 2018). The court found the parties lived together, off and on, from 2012 until December 2018, about 6½ years.
• Ages: Husband 64 years old; Wife 57 years old.

Children

• No children from the relationship.
• No mention of children from previous relationships.

Initial Financial Positions

• Husband:

  • Real estate, assets, and defined superannuation (value disputed but approximately $1,127,000 initially).
  • Received a gift from his mother (the amount, $114,000 or $175,000, was disputed).

• Wife:

  • Owned a property valued at approximately $700,000 with a mortgage initially around $281,000.
  • $1,200,000 judgment debt against her from a commercial development venture.
  • Initially claimed assets, debts, and superannuation totalling about $509,000.

Contributions During the Relationship

• Financial Contributions:

  • Husband discharged Wife’s mortgage debt and improved properties.
  • Wife’s contribution included few financial assets and equity brought into the marriage.
  • Gift from Husband’s mother regarded as his contribution.

• Non-financial Contributions:

  • Husband contributed through substantial physical labour and renovation work on their properties.
  • Both made equivalent non-financial contributions in terms of homemaking and improvement efforts.

Post-Separation Contributions and Actions

• Financial Contributions:

  • Sale of properties and division of proceeds. Inconclusive actions regarding claims of financial mismanagement by either party.

• Non-financial Contributions:

  • Continued property maintenance and lack of evidence for misuse of finances.

Current Financial Position & Property Pool

• Total asset pool valued at $3,039,955.
• Properties involved include:
  • B Street, Suburb C property: Sale with proceeds to be divided.
  • G Street, Suburb H and E Street, Suburb F: Ownership and interest transfers arranged by court orders.

Assessment of Contributions and Future Needs

• Contributions:

  • Husband contributed 79%, Wife contributed 21%.
  • Assessment considered initial contributions and income generated from superannuation after its access.

• Future Needs Adjustments:

  • 5% adjustment in favour of the Wife (about $152,000), taking account of the disparity in their positions after the contributions stage, the husband's expected inheritance of about $400,000 to $500,000 from his mother's estate, and his reduced work capacity after a serious medical episode.
  • The husband's expected inheritance was not included in the pool but was taken into account.

• Final Division: Total asset division resulted in 26% ($790,388) for the Wife and 74% for the Husband. The former home was to be sold, with the Wife receiving 52.33% of the net sale proceeds.

Unique Aspects

• Dispute over cohabitation and separation dates affected the initial financial assessment.
• Husband’s health and retirement impact, as well as possible inheritance considerations, influenced future needs assessments.
• Selling B Street, despite the Wife’s initial desire to retain, due to her inability to cover financial excess needed for retention.

Conclusion

The final orders reflected the court's assessment of all contributions, assets, financial situations, and the reasonable expectations post-separation. The detailed financial obligations and property transactions settled unresolved aspects, establishing a definitive division of assets.

The law since this decision

This case was decided before 10 June 2025. From that date the Family Law Act 1975 (Cth) sets out the steps for a property settlement in s 79(3) to (5), and the court must consider the effect of family violence on each party's contributions (s 79(4)(ca)) and on their current and future circumstances (s 79(5)(a)), and any material wastage of property (s 79(5)(d)). In Western Australia, a property case between married couples is decided under that Act in the Family Court of Western Australia. A case between de facto partners in Western Australia is decided under the Family Court Act 1997 (WA), which has not adopted those 2025 changes.