Kalgreen & Kalgreen [2023] FedCFamC2F 225

Kalgreen & Kalgreen [2023] FedCFamC2F 225

Relationship Details

• Type: Marriage
• Duration: Married in 2006, separated on 5 September 2017. Relationship lasted approximately 11 years.
• Ages: Husband 51 years old, Wife 47 years old.

Children Details

• Children from Relationship: Three children, aged 15, 13 and 11 at the end of the hearing.

Initial Financial Positions

• Wife:

  • Cash/Savings: $22,000 in savings; managed fund worth $10,000.
  • Superannuation: $30,000.
  • Other: Motor vehicle.

• Husband:

  • Property: Equity in the Suburb VV property, bought at $680,000, with mortgage balance indicating equity of $145,000.
  • Superannuation: $110,000.
  • Car: Valued at $15,000.

Contributions During the Relationship

• Financial Contributions:

  • Husband: Used income for property maintenance and mortgage repayments, Suburb VV property profits; contributed redundant payouts and farm income.
  • Wife: Contributed $630 monthly initially, $24,000 and share proceeds to Suburb VV mortgage.
  • Family money: the wife's parents provided $100,000 toward the purchase of the Suburb C property. The husband said a further $100,000 was borrowed from his mother, which the wife denied.

• Non-financial Contributions:

  • Primary homemaker and parent from birth of children, especially during husband’s frequent farm business absences.
  • Wife took leave to care for children, contributing more when husband worked long hours.

Post-Separation Contributions and Actions

• Financial Contributions:

  • Wife took loans from family to meet mortgage payments post-separation.

• Non-financial Contributions:

  • Wife continued as primary caregiver with minimal financial assistance from husband.

Current Financial Position & Property Pool

• Divorce: Final on 1 July 2021.
• Suburb C Property: Joint ownership, valued at $3,800,000 with an outstanding mortgage.
• Debts: the farm property at Town F had carried bank debt of about $1.35 million; it was sold in 2021 for over $1.7 million. Other debts included legal funding loans and school fees.
• Wife’s Superannuation: $140,946.
• Husband’s Superannuation: $377,966.
• Net property, including superannuation: $3,948,843.

Assessment of Contributions and Future Needs

• Assessment of Contributions:

  • Wife 52%, Husband 48% due to primary care and financial responsibilities.
  • Holistic assessment covers financial and non-financial contributions.

• Future Needs Adjustments:

  • Adjusted 15% in the wife’s favour (about $592,326) due to her role as primary caregiver and disparity in earning capacities, giving a split of 67% to Wife and 33% to Husband.

• Final Division:

  • 67% to Wife (about $2,645,725) and 33% to Husband (about $1,303,118), accounting for her future needs and primary parental role.

Unique Aspects

• The wife's claim that family violence made her contributions more arduous (a Kennon claim) was dismissed, and both parties' wastage arguments were rejected: the farm's failure was put down to climatic conditions, not recklessness.
• Numerous legal complexities due to withheld tax filings and debt negotiations.
• Wife's request to retain Suburb C property not supported by available financial evidence, leading to an ordered sale.

The outcome reflects extensive Federal Circuit and Family Court involvement, with significant court directives for asset division, particularly requiring the sale of the Suburb C property and debt management before proceeding distribution, to accommodate financial equity and future stability for both parties.

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.