Rowland & Rowland [2024] FedCFamC2F 7

Rowland & Rowland [2024] FedCFamC2F 7

Background Details

• Type: Marriage
• Duration: 11 years. Married in 2010 and separated on 24 April 2021. Cohabitation started in 2008, totalling 13 years of cohabitation.
• Ages at Judgment: Husband 50, Wife 41

Children

• Children from Relationship: Three children, aged 11, 11 and 8.

Initial Financial Positions

• Husband:
  • In 2017, during the relationship, received a compensation payment of about $36,000, placed in his own savings.
• Wife:
  • Established her own health care business in 2009, before the marriage, later operated through P Pty Ltd.

Contributions During the Relationship

• Financial Contributions:
  • Joint purchase of the Suburb C property in 2018 for $1.7 million.
  • Wife established and operated P Pty Ltd.
  • Husband became a shareholder of L Pty Ltd in 2015 and G Pty Ltd in 2016.
• Non-financial Contributions:
  • Both parties agreed that their financial, non-financial and homemaking contributions were equal.

Post-Separation Contributions and Actions

• Financial Contributions:
  • Husband started a new business J Pty Ltd post-separation, later converted to D Pty Ltd.
  • Sold shares in L Pty Ltd for $450,000.
• Primary Caregiver Arrangements:
  • Children live primarily with the wife, spending significant time with the husband.

Current Financial Position & Property Pool

• Husband:
  • Income from D Pty Ltd: $3,000 per week.
  • Assets include shares in multiple Pty Ltd companies and G Trust.
  • Estimated value of 25% share in D Pty Ltd: $40,000.
• Wife:
  • Income: $180,000 per annum (possibly higher when tax considerations are included).
  • Retains interest in K Pty Ltd and the family trust.
  • Value of the family trust: $1,298,180.
• Property Pool:
  • Total net value: $2,669,567.
  • Suburb C property valued at $2,350,000.

Assessment of Contributions and Future Needs

• Contributions:
  • Both parties agreed to an equal split of contributions at 50%.
• Future Needs Adjustments:
  • Adjustment in favour of the wife by 5%, resulting in a 55% share, because of her responsibility to care for and school the three children and the husband's superior financial position once his interest in D Pty Ltd is considered.
• Final Division: 55% to Wife and 45% to Husband. The husband was to pay the wife $142,438.85 and refinance the Suburb C property into his name within 60 days, failing which it would be sold.

Unique Aspects

• Business Dispute: Husband engaged in a business transition from L Pty Ltd to D Pty Ltd.
• Compensation for Missing Assets: Disputed valuation of jewellery and artwork; attributed to husband as $70,000.
• Tax Implications: Potential CGT liability considered but not crystallised.
• Addbacks: Legal fees paid by each party were added back. The share sale was found to be a bona fide transaction, but the husband could not account for at least $83,373 of the proceeds, weighed against an estimated CGT liability of $77,428.

Main Takeaways

• The division of assets was complicated by business transitions and contentions surrounding the dissipation of assets.
• The determination of contributions and adjustments heavily relied on the future needs of the wife due to her responsibility for the children.
• The total property pool was assessed globally, considering both contributions and future needs adjustments, resulting in a 55% allocation to the wife and a corresponding 45% to the husband.

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.