Farina & Siang [2023] FedCFamC2F 665

18 July 2023

Ages: Husband (61), Wife (50)
Relationship: 4-year marriage
Children: None
Asset pool: $648,500 (net assets)
Division: Wife 55%, Husband 45%

Farina & Siang [2023] FedCFamC2F 665

Background Details

  • Marriage
  • Duration: Married in 2010, separated on 3 November 2014. Relationship lasted approximately 4 years.
  • Ages at judgment: Husband 61, Wife 50

Children

  • No children from the marriage.

Initial Financial Positions

  • Husband:

    • Property at M Street, Suburb N with an equity of about $50,000.
    • Motor Vehicle 1, a truck, about $100,000 in credit card debts, and about $10,000 tax debt to the ATO.
  • Wife:

    • Cash savings of about $141,000 at marriage.

Contributions During the Relationship

  • Financial Contributions:

    • In about 2011 the wife bought the property at B Street, Suburb C in her name for $550,000, contributing $110,000 and taking a mortgage of $440,000, which she repaid until separation.
    • The husband carried out renovations on the B Street property and paid for, or effectively paid for, the materials; a reasonable cost of the works was about $246,540, a contribution of substance.
    • The husband paid the mortgage on his own property throughout.
  • Non-financial Contributions:

    • Both parties contributed approximately equally as homemakers.
    • Both parties contributed to day-to-day household expenses and utilities.

Post-Separation Contributions and Actions

  • Financial Contributions:

    • Wife made mortgage repayments on the property at B Street post-separation, with loans from her brother-in-law; she has not worked since mid-2015.
  • Non-financial Contributions:

    • Wife and her son lived at B Street post-separation. Post-2018, the wife's sister and brother-in-law also lived there.

Current Financial Position & Property Pool

  • Assets:

    • Assets of both parties total $1,403,500, with net assets valued at $648,500.
  • Liabilities:

    • $755,000 in liabilities, including the wife's $200,000 debt to her brother-in-law. The wife's claimed loans from friends ($130,000) and most of the husband's asserted tax debt were excluded.

Assessment of Contributions and Future Needs

  • Contributions:

    • Assessed at 55% to the wife and 45% to the husband, weighing the wife's initial savings and post-separation mortgage payments against the husband's renovation work. The wife's Kennon claim was rejected because her allegations of family violence were not proved.
  • Future Needs Adjustments:

    • No adjustment in favour of either party under s 75(2) of the Family Law Act.
  • Final Division:

    • Wife awarded 55% of net assets, equating to $356,675.
    • Husband awarded 45% of net assets, equating to $291,825.

Unique Aspects

  • Dispute concerning the extent and method of payment for renovations.
  • Significant post-separation loans from the wife's brother-in-law, who has also lived at the property and paid rent since 2018, were accepted as a $200,000 liability.
  • The wife was given 3 months to pay $109,825 to the husband or the property would be sold to facilitate the financial settlement.

This case highlights the complexities involved in financial assessments during marriage breakdowns, involving significant contributions and liabilities requiring detailed court examination.

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.

Citation: Farina & Siang [2023] FedCFamC2F 665

These summaries have been generated with the help of artificial intelligence.