Sardo & Sardo [2023] FedCFamC2F 1015

Sardo & Sardo [2023] FedCFamC2F 1015

Relationship Details

• Type: Marriage
• Duration: Approximately 23 years. The couple commenced a relationship in 1995, began living together permanently in 1999, married in 1999, and separated in January 2022.
• Ages at Judgment: Husband 49, Wife 47

Children

• Children from the Relationship: Two children, aged 15 and 19.
• Living Arrangements: Both children live with the husband. The wife's relationship with them is strained, with limited overnight stays since separation.

Initial Financial Positions

• Husband:

  • Owned property in Suburb H, sold for approximately $55,000.
  • Savings of about $25,000 in a cash management account and $7,000 in a savings account.

• Wife:

  • Savings of approximately $10,000 at commencement of the marriage.

Contributions During the Relationship

• Financial Contributions:

  • Husband owned Suburb H property; proceeds used in purchasing Suburb C property.
  • Wife received significant gifts from her father during the relationship: at least $150,000 to $160,000 on the husband's admission, and $200,000 on hers.
  • Wife inherited $1,573,253 via a testamentary trust from her late father.

• Non-Financial Contributions:

  • Husband contributed significantly to building the family home on the Suburb C property as owner-builder.
  • Wife was primarily responsible for early childcare and homemaking duties.

Post-Separation Contributions and Actions

• Financial Contributions:

  • Husband continued to service the home loan, paying rates, insurances, and outgoings for the Suburb C property.
  • Has had the children living with him since separation.

• Non-Financial Contributions:

  • Wife moved initially to hotels and then rental accommodations post-separation.

Current Financial Position & Property Pool

• Current Income:

  • Husband: Approximately $170,000 per annum (including superannuation).
  • Wife: Earns between $108,224 and $116,617 per annum, depending on her role status.

• Property Pool:

  • Suburb C property valued at $1.6 million with a mortgage of $344,829.
  • Wife’s inheritance: $1,573,253.
  • Superannuation treated as a separate pool and equalised, each party receiving $305,279.
  • Total net non-superannuation assets, including a $6,510 add-back of the wife's legal fees: $2,917,794.

Assessment of Contributions and Future Needs

• Contributions Evaluation:

  • Non-superannuation asset contributions assessed at 75% to the wife and 25% to the husband due to significant inheritance and gifts.

• Future Needs Adjustments:

  • 7.5% adjustment recognising the husband's full-time care of the younger child and the disparity in the property each would otherwise retain.

• Final Division: 67.5% to the wife and 32.5% to the husband of the non-superannuation assets. (On contributions alone, 75/25, the wife would have received about $2,188,345 and the husband $729,000.) If the husband keeps the home he pays the wife $336,400, giving her assets of about $1,969,503; otherwise the property is sold and the proceeds divided by formula.

Unique Aspects or Influencing Factors

• Significant contribution by the wife through inheritance.
• The husband's failure to introduce an adversarial expert valuation evidence for the Suburb C property value was a key decision.
• The 7.5% adjustment reflects the husband's care of the children since separation and the disparity in the property each would otherwise retain.

Conclusion

The court's decision evaluated detailed financial contributions, non-financial contributions, and future needs adjustments to provide a just and equitable division of assets following a long marriage. The inheritance played a pivotal role, with adjustments recognising the husband's increased responsibility for children post-separation, leading to a decision that awarded the majority of assets to the wife.

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.