Farrer & Farrer [2023] FedCFamC2F 538

Farrer & Farrer [2023] FedCFamC2F 538

Background Details

• Type: Marriage
• Duration: The couple commenced cohabitation in 2000, married in 2001, and separated in May 2018. This spans a total of approximately 18 years.
• Ages at Hearing: Husband 44 years, Wife 43 years.

Children

• Children from Relationship: Three children, X, Y and Z, aged 17, 14 and 11 at the hearing.
• Parenting Outcome: The mother was given sole parental responsibility and the children live with her. The eldest spends time with the father as she wishes, and family therapy was ordered to try to rebuild the father's relationship with the two younger children.

Initial Financial Positions

• Wife:

  • Owned a vehicle and held nominal superannuation entitlements.

• Husband:

  • Owned two vehicles, a boat, a motorcycle, and sole shareholding in C Pty Ltd, through which he operated a construction business.
  • Held nominal superannuation.

Contributions During the Relationship

• Financial Contributions:

  • Joint savings and income were applied toward the purchase and renovation of the D Street, Suburb E property (matrimonial home).
  • The wife contributed an inheritance of about $30,000 from her grandmother (2005) towards family expenses and the mortgage.
  • The husband received an inheritance used similarly in amounts between $110,000 to $150,000.

• Non-financial Contributions:

  • The wife undertook the primary homemaker role and cared for the children.
  • The husband participated in the renovations of their matrimonial home.

Post-Separation Contributions and Actions

• Financial and non-financial contributions post-separation centred around ongoing responsibilities and disputes over financial obligations like school fees and overdraft refinancing by the husband.

Current Financial Position & Property Pool

• Wife’s Position:

  • Income of $35,568 annually.
  • Current superannuation balance: $69,000.
  • Personal debts about $5,676.

• Husband’s Position:

  • Had been earning around $52,395 annually post-separation through various employment arrangements.
  • Current superannuation balance: $76,000.

• Total Property Pool: $1,166,702, primarily consisting of cash in trust from the sale of the D Street, Suburb E property.

Assessment of Contributions and Future Needs

• Contributions Assessment:

  • On a holistic view, contributions favoured the wife at 52.5% to the husband's 47.5%.

• Future Needs Adjustments:

  • An additional 15% in the wife's favour based on the disparity in earning capacities and her ongoing sole care and support of the children.

• Final Division: Wife awarded 67.5% ($787,523.85) of the property pool, husband 32.5% ($379,178.15), to reflect contributions and future needs factors. From the sale proceeds held in trust, the wife receives $661,224.85 and the husband $133,461.15.

Unique Aspects

• The impact of significant debts and interim financial properties on the division of assets.
• The husband failed to comply with an interim order to pay the property insurances, and with his duty of financial disclosure.

This case reflects challenges such as non-compliance with financial obligations, disputes over asset sale and debt management post-separation, and the requirement for family therapy to address parenting concerns amid significant changes to property interests favouring the primary homemaker post-divorce.

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.