Walls & Keeble (No 2) [2023] FedCFamC2F 477

Walls & Keeble (No 2) [2023] FedCFamC2F 477

Relationship Details

• Type: De facto relationship
• Duration: Approximately 8 years. Commenced in 2011, ended in December 2019.
• Ages: Applicant (Wife) born in 1965, Respondent (Husband) born in 1966

Children

• Both parties had children from previous marriages. No children were born from the de facto relationship.
• The Wife has three adult children, and the Husband has an adult son and a much younger daughter.

Initial Financial Positions

• Applicant (Wife):
  • Owned multiple unencumbered properties and her own family trust, holding substantial assets.
  • Cash savings of approximately $40,000.
  • Owned a motor vehicle valued at $40,000.
• Respondent (Husband):
  • Owned mortgaged properties with combined mortgage debts of approximately $1.2 million.
  • Owned a motor vehicle and a motorcycle.

Contributions During the Relationship

• Financial Contributions:
  • The Wife primarily financed the purchase and renovation of the Town B Property with her savings and loans from her trust.
  • The Husband assisted with renovations through gifts and loans from his company, Company T.
• Non-financial Contributions:
  • The Wife managed administration for the Town B Property and conducted gardening, while the Husband did manual and maintenance work.
• Both engaged in initial significant renovations needed for the operation of the Town B Property.

Post-Separation Contributions and Actions

• The Husband removed various items and assets, actions deemed spiteful, e.g., taking cash from business accounts and withdrawing funds from a mortgage without clear justification.
• The Wife continued to manage the Town B Property and handled necessary repairs and renovations alone.

Current Financial Position & Property Pool

• Applicant (Wife):
  • Retained substantial real estate holdings and trust assets.
  • The P Street property in Victoria, retained outright by the Wife.
• Respondent (Husband):
  • Retained his interests in Company T and Company U.
  • Declared no further interest in entities like C Trust and Town B Company.
• Property Pool:
  • The net value of non-superannuation property was about $8,234,120.
  • Focus primarily on the distribution of assets excluding superannuation.

Assessment of Contributions and Future Needs

• Contributions:
  • Wife: Assessed at 83% ($6,834,320) based on significant initial and ongoing financial contributions.
  • Husband: Assessed at 17% ($1,399,800), largely for contributions to renovations and maintenance work.
• Future Needs Adjustments:
  • The husband sought 35% once future factors were considered. The court held that an 83/17 division adequately took account of the future factors and of the husband's non-disclosure, so no further adjustment was made.
• Final Division:
  • Non-superannuation property divided 83% to the Wife and 17% to the Husband.

Unique Aspects

• Potential future windfall related to rezoning of the Town B Property was considered speculative and not a factor in asset division.
• Claims of financial non-disclosure and dissipation of assets by the Husband negatively impacted settlement outcomes for him.

Conclusion

The court determined an asset division strongly favouring the Wife due to her predominant financial input throughout the relationship and managing operations single-handedly post-separation. The division reflects both financial and non-financial contributions realistically without speculative future adjustments regarding the property.

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 90SM(3) to (5), and the court must consider the effect of family violence on each party's contributions (s 90SM(4)(ca)) and on their current and future circumstances (s 90SM(5)(a)), and any material wastage of property (s 90SM(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.