31 January 2025 - Goldman Law

High Court Upholds Appeal Court Ruling That Wife Not Entitled To Spousal Maintenance

Keywords

family law, spousal maintenance, interim spousal maintenance, appeal, financial resources, section 72, 72(1), section 75, section 75(2)(b), section 75(2)(o), spousal maintenance considerations, justice of the case.

The case of Hall & Hall [2016] HCA 23 (8 June 2016) was a family law hearing heard in the High Court of Australia.  The matter was brought to the High Court on appeal from a decision of the Full Court of the Family Court of Australia.

Background

This matter concerned a separated Husband and Wife after the Wife commenced proceedings in the Family Court.  The Wife asked the Family Court to consider the parties’ property and financial circumstances and decide how the property between them should be divided.  The parties were married in 2001 and separated 26 September 2013.  There were 2 children from their relationship together.

The Wife asked the Family Court to consider an application for interim spousal maintenance while the court proceedings were underway.  The court granted the Wife’s request.  The Husband disagreed with the Family Court’s decision and lodged an appeal with the Full Court of the Family Court (“Full Court”).  The Full Court reversed the Family Court’s decision thereby stopping the Husband from having to pay interim spousal maintenance to the Wife.  The Wife disagreed with the Full Court’s decision and then appealed to the High Court of Australia (“High Court).  The Wife’s appeal was dismissed by the High Court.

Spousal Maintenance

Spousal maintenance is payable under section 72 of the Family Law Act 1975 (Cth) where one of the parties is unable to adequately support herself or himself as a result of:

  • caring for a child or children under the age of 18;
  • age, physical or mental incapacity which hinders employment; or
  • for any other adequate reason.

A court must consider section 75 of the Act when determining whether there is an adequate reason to justify spousal maintenance.  These factors include but are not limited to:

  • the age and health of a party;
  • the income, property and financial resources of a party;
  • the earning capacity of a party and any affect the relationship had on the party’s earning capacity;
  • the commitments of each party to support himself or herself, any children or another person;
  • the eligibility of a party for a pension, allowance or benefit;
  • the eligibility for payments from superannuation;
  • the standard of living that is reasonable in the circumstances;
  • the period of the relationship and the contributions made by a party to the relationship;
  • child support being paid or that a party might be liable to pay for a child of the marriage;
  • whether a party is cohabitating with another person and the effect this cohabitation has on the financial circumstances of that party; and
  • any other fact or circumstances that in the opinion of the court would be just to take into account.

Wife’s Spousal Maintenance Application

The Wife made an application to the Family Court for an order that the Husband pay interim spousal maintenance for $10,833 per month.  The Wife asked that this be paid until determination of the property proceedings between the Husband and Wife.

The Family Court granted the interim spousal maintenance application.  The Husband disagreed with the Family Court’s decision and filed an application to discharge the interim spousal maintenance order.  To support the Husband’s case he investigated the Wife’s financial circumstances.  The Wife’s father had passed away in 2009.  The Husband discovered that the Wife might have an entitlement under the father’s Will.  One of the Wife’s brothers was administering the father’s estate as the Executor.  The Husband attempted to subpoena the father’s will.  The Executor refused to provide a copy of the Will.  Instead, a solicitor on behalf of the brother provided an affidavit outlining the potential entitlements that the Wife may be entitled to under the Will as:

  1. $16,500,000 if she divorced; and
  2. An annual payment of $150,000 if the Wife did not divorce.

In the father’s Will he stated that the payments were to be paid by a group of companies that the father controlled when he was alive.  The group of companies (the V Group) were left to the Wife’s 3 brothers.  The solicitor on behalf of the brother claimed it was unlikely that the Wife could force the V Group to make the payments.  The Wife claimed she was unaware of the contents of the father’s Will.

The Family Court heard the Husband’s application to discharge the interim spousal maintenance order and dismissed the Husband’s application.  The Husband disagreed with the court’s ruling and appealed to the Full Court.

Husband’s Appeal to the Full Court of the Family Court

The Husband claimed the Primary Judge from the Family Court was wrong in dismissing his application to discharge the interim spousal maintenance order.  The Husband claimed he provided sufficient evidence to show the Wife did not need spousal maintenance to support her.

On the other hand, the Wife provided a letter from her brother who was administering the father’s estate.  The letter explained that the payments to the Wife in the father’s Will were voluntary.  The letter stated that the payments could only be made by the V Group by choice of the Directors.

The Full Court concluded that the Family Court had failed to consider all of the evidence from the Husband in the original interim spousal maintenance hearing.

The question before the Full Court was whether there was sufficient evidence that demonstrated that the Wife could adequately support herself.  The Full Court inferred from the evidence available that the Wife could receive a payment from the V Group of $150,000 annually if she requested it.  Based on this the Full Court found the Wife could adequately support herself and dismissed the interim spousal maintenance order.

The Wife disagreed with the Full Court’s decision and appealed to the High Court.

Wife’s Appeal to the High Court of Australia

The High Court determined that the Wife’s claim that the annual payment of $150,000 could not be included as a financial resource under section 75(2)(b) and section 75(2)(o) of the Act was wrong.  The High Court stated that section 75(2)(b) of the Act concerned the practical ability of a party to support himself or herself.  The High Court confirmed the correct interpretation under section 75(2)(b) of “financial resources” as being a source of financial support that a party can reasonable expect to be available.  This must be something more than benevolence but the party need not control the financial source. Accordingly, the High Court dismissed the Wife’s appeal and upheld the Full Court’s decision.

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Mother’s Relocation from North Queensland to Brisbane Considered in Disabled Child’s Best Interests

Introduction

Keywords: family law, parenting, child, relocation, special needs, autism, severely disabled, opposition, parenting capacity, best interest of the child, best interest of the children, s 60B, s 60CA, s 60CC, s 61DA Family Law Act.

The case of Wright & Watson [2016] FCAA 127 (11 March 2016) was a family law hearing in the Federal Circuit Court of Australia.  The matter involved property and parenting.  The parties settled property matters leaving the parenting matters to be determined by the Court.

In this case, the mother requested the Court’s permission to relocate with the children from North Queensland to Brisbane.  The father asked that the court make orders requiring the children to remain in North Queensland.  A major issue, in this case, was that the parties’ youngest child was disabled.  The mother was the primary carer for the children and wanted to move to Brisbane to gain the support of family members who lived there.

Background

The mother and father separated in June 2011.  They both lived in North Queensland.  The mother is the primary carer of the party’s three children.  John was born in 2003, Sue was born in 2007, and Daisy was born in 2008.  Daisy has autism and is severely disabled.

The mother had the children in her care the vast majority of the time.  Due to Daisy’s disability, the Court accepted that caring for Daisy is a full-time job.  The mother claimed she was “at the end of her tether” in being able to look after the children.  As a result, the mother wished to relocate to  Brisbane where she claimed she would receive support in caring for Daisy from family members.

Mother’s Proposed Relocation

The primary grounds of the mother’s relocation request were the care requirements of Daisy; the lack of support from the father in caring for the children, and that the mother’s family in Brisbane could assist her to care for the children.

The Court received evidence from the mother’s family members including the maternal grandmother, mother, uncle, aunty, brother, niece, and cousin.  The uncle claimed that he could assist with providing handyman services and assisting the mother generally.  The grandmother stated she could provide some assistance and would be available in emergencies.  The cousin stated she would be available to help with Daisy but that she also studied on a full-time basis.  The aunt claimed that she would be available for ongoing assistance to the mother.

Current Parenting Arrangements

The mother discussed the circumstances of the children including that Daisy was very demanding and would have “meltdowns”.  As a result of this, John and Sue received little attention.  John was a demanding child and as a result, Sue received the least amount of attention.

The father, through his own admission, favoured John over the other children and would often do activities with John while excluding the girls. After the parties’ separation, the father had little involvement with the children.  The father’s only attempt to have greater contact with the children was when proceedings were commenced by the mother.  The father used excuses as to why he did not want more contact with the children including due to an incident at Daisy’s special needs school.

The Court noted that the father had not sought the assistance of the government or other services to assist with the care of Daisy nor assisted the mother in this regard.  The Court also noted that the father often called on other family members to look after the children when they were in his care.

The Court concluded that the father puts himself first over the parenting, behavioral and educational needs of the children. 

Assessing the Mother’s Relocation Request

The court referred to the case of Lansa & Clovelly [2010] FamCA 80 at paragraphs 136 to 152 for guidance.  This requires that a court apply section 60CA of the Act which states that a child’s best interests is the paramount consideration when making parenting orders.  The court in Lansa & Clovelly stated that “parents of children each have, by the fact of parenthood alone, parental responsibility”.  Section 61B of the Act states that parental responsibility includes “all the duties, powers, responsibilities and authority” that the law provides to parents to parent children.

The Court also referred to the case of Heath & Hemming (No 2) [2011] FamCA 749.  This case discussed the law regarding relocating parents in parenting matters.  According to the case, a court must consider relocation matters under section 60CA of the Act with the best interests of the child as the primary consideration.  A court should then consider section 60CC which provides guidance in determining what is in the best interests of a child; the primary considerations being:

  • a child has a meaningful relationship with both parents; and
  • the child be protected from physical or psychological harm.

The court determined in Heath & Hemming, that a court must consider both the current and previous parenting arrangements.  Further, the court must determine a child’s best interests while contrasting a parent’s right to choose where to live.

The Court then considered the case of Sigley v Evor [2011] FamCAFC 22 as to the determination of a meaningful relationship between a child and parent.  This included that:

  1. under section 60CC(2)(a) of the Act, the benefit of the child having a meaningful relationship should be considered at the time of the hearing;
  2. under section 60CC(3)(b) the existing relationship between a child and parents should be considered; and
  3. that the Act promotes a “meaningful relationship” but this need not be optimal.

In Sigley v Evor, the court determined that factors determining what is in a child’s best interests in a relocation case may include a parent’s:

  1. better economic prospects through employment;
  2. better housing and facilities; and
  3. enhanced economic circumstances through a provident partnership.

Conversely, limited employment opportunities or financial circumstances may be considered.

The Court’s Decision

In determining this matter, the Court stated that each child needed to be considered separately.  The Court determined that John did not want to move and it would be a detriment for him to move away from the father.  The Court considered that Sue received little attention from both parents due to the special needs of Daisy and the father favouring John.  The Court considered it would be in the best interests of Sue to allow the relocation.  The Court considered Daisy’s needs and determined that she was likely to receive more support and assistance in Brisbane and that relocation would be in her best interests.

In determining the matter, the Court considered that the mother lived in a rural location and was struggling to cope with providing care of the children especially as one child has a severe disability.  The rural location reduced the services available to the mother and placed her in hardship.  On the other hand, the father chose to live a liberal lifestyle and only had the care of the children as it suited him.

The Court considered that if the mother was allowed to relocate to Brisbane, it was highly likely that she would receive support from family members.  It was likely that this support would result in the children receiving more attention from the mother and that all the children would enjoy better support overall.  This was in the best interests of the children.

Based on these factors, the Court made orders that the mother is allowed to relocate from North Queensland to Brisbane.

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Mother Granted Recovery Order for Children after Father Unilaterally Relocated to US in  Shared Parental Responsibility Matter

Introduction

In the case of Bondelmonte [2016] FamCAFC 48 (8 April 2016) the Full Court consisting of Ryan, Aldridge and Le Poer Trench JJ heard a father’s appeal against orders made by Watts J in a relocation case involving two boys. The matter considered what should be regarded as the ‘primary’ and ‘additional considerations’ of the children are pursuant to s 60 CC (2) and (3) of the Family Law Act 1975 (Cth) (“the Act”).

Background

This case involved a unilateral relocation to the US sought by the father while on holiday with his two sons of almost 17 and 15 years of age. The two boys wished to reside with their father whilst their 12-year-old siblings continued to reside in Australia with their mother. The existing orders made in 2014 were for equal shared parental responsibility and the three children were to live with the mother and father as agreed between the parties or at the children’s own election.

The family lived in Australia until January 2016 when the father took both sons for a holiday to New York with the mother’s consent. During the course of the holiday, the father expressed to the mother his intentions of remaining in New York indefinitely with the two sons.

The father gave evidence under oath that the boys expressed their wish to remain in New York with their father. The children claimed they had an estranged relationship with their mother, therefore, did not wish to return. The mother was granted a recovery order and the father’s appeal was dismissed. The Court reinforced in relation to a child’s view that “context is critical”.

Central Issue in the Case

The central issue in this matter was whether the children’s views should be taken into consideration. In this case “context was considered to be critical”. The Court ruled that the children be returned to their mother and that a report was required that dealt with more than simply the boys’ views.

The Court ruled the report was required to assess the dynamics of the sibling relationships and their respective relationships with their parents.

Considerations

Ryan and Aldridge JJ in the majority held that the primary judge was satisfied it was in the best interests of the two boys to return to Australia pending a determination about whether, in the long-term, they would continue to reside in Australia or relocate to the United States.

If the father decided to return to Australia with the two boys, they were to continue living with him, however, if he remained in New York, the boys would live with the mother in Australia. As the boys had a strained relationship with their mother, the Orders provided that the mother and boys could make arrangements for the boys to stay with nominated third parties without the father’s approval.

His Honour mandated that a report which dealt with more than simply the boys’ views was necessary as the Court would not examine such factors as to the dynamic of the sibling relationship and also each sibling relationship with their parents. The report was ordered to take place in Australia where all family members were able to participate.

His Honour expressed disdain in the father’s breach of the orders and in doing so the father demonstrated poor judgement as a parent and ‘as a role model to the boys’. For the Court to agree with the father’s behaviour would fail to acknowledge what might be considered appropriate parental behaviour.

Conclusion

Section 60CC(2) and (3) of the Act requires consideration of the following:

· the boys’ expressed views as against the damage currently done to the mother’s relationship with both sons;

· the father and daughter relationship; and

· the daughter’s relationship with her brothers by the unilateral action of the father.

These factors need to be considered alongside the history and family dynamics and any identified risk factors.

If not for the mandated order to return both children to Australia, the Court raised concern that the above relationships will be irretrievably damaged. Therefore, the Court found it in the best interests of all three children to make the orders for the return of the boys to Australia.

Father’s Grounds for Appeal

As there was an order for equal shared parental responsibility pursuant to s 65DAA, the father relied on the ground of appeal that the Court was obliged to consider whether or not an order for an equal or substantial and significant time was in the best interests of the children and reasonably practicable prior to ordering the return of the boys to Australia. However, the Court did not accept that an application for an order that a child lives exclusively with one or another parent is an application for a substantial and significant time.

Section 65DAA (2)(b) of the Act requires that the Court consider whether the child spending time with each parent would be in the child’s best interests. The father also contended that sufficient weight was not given to the children’s views.

However, in the case of Maldera, it was found that it is not a requirement for a judge in his Honour’s position to make orders consistent with a child’s stated views. Instead, a primary judge is required to consider the weight to be given to such views.

Factors Giving Weight to a Child’s Expressed Views

The Court stated there is a range of factors that may affect the weight given to a child’s expressed view which include age and level of maturity of the child in question. Therefore, context is critical as it is a matter for the judge to determine how giving effect to a child’s stated view aligns with the best interests of the child.

The case of R & R (Children’s Wishes) [2002] FamCA 383 illustrates this point. The parties and the Court were satisfied that each child could choose who they would live within Australia. The children, however, were not permitted to make other significant long-term decisions as that power remained vested in the parties jointly. The majority dismissed the father’s appeal and ordered that the father pay the independent children’s lawyer’s costs.

Allowing the Appeal

Le Poer Trench J allowed the appeal on the basis that the hearing should have been adjourned with the mother required to provide additional information about the proposal for the children to live with the volunteers.

Furthermore, the independent children’s lawyer should have been given an opportunity to investigate the proposal in the usual way that it is carried out. The father should have also been required to notify the Court of his intentions to accompany the boys on the trip back to Australia in the event the order sought by the mother is granted.

Le Poer Trench J also believed the father should have been given an opportunity to put forward a proposal to house the boys in Australia pending the determination of the mother’s parenting application and any simultaneous parenting application he would be entitled to make. Le Poer Trench J believed there was no urgency in the matter that should have disregarded these requirements.

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Family Court Finds No Error in Treating Husband’s Lottery Winnings as Soul Contribution of the Husband

Keywords: Property settlement; section 79 of the Family Law Act; lottery winnings; contributions;

Introduction

In the matter of Elford [2016] FamCAFC45 (29 March 2016) the Full Court of the Family Court consisting of Bryant CJ, Murphy CJ, Murphy & Cronin JJ, heard the wife’s appeal against a property order made by Judge Roberts that the husband must pay the wife a sum of $51,000, an amount which, combined with the net value of a mortgaged home purchased by the wife after separation equalled approximately 10% of the $1.4 million asset pool.

Facts

The husband was 22 years older than the wife and had three children from a previous relationship. He won $622,842 in lottery 12 months into their 10-year relationship. The husband invested his winnings, along with his savings, into a term deposit account consisting of $650,000 in his own name. Both the husband and wife led largely separate financial lives. The husband inherited $190,000 from his mother’s estate which he also kept separate.

The Full Court said that the judge correctly considered the husband’s savings and investments as contributions on his part. The first point of appeal by the wife, however, was that the lottery win of $622,822 was incorrectly treated as a contribution by the husband. The wife argued that the lottery win should be treated as a joint contribution by the parties.

In arguing that the husband’s lottery was a joint contribution, the wife acknowledged that the husband bought the ticket and deposited the money into his account. The wife believed that the lottery winnings should have been considered as a joint contribution on the basis that they were also in a relationship. Despite being in a relationship, however, the wife said that they each maintained separate bank accounts as this is what the husband wanted. The wife argued that the trial judge incorrectly applied the decisions of Zyk v Zyk (1995) FLC 92-644 and Eufrosin & Eufrosin [2014] FamCAFC 191 by giving undue weight to the financial aspects of the purchase of the ticket and the financial relationship of the parties rather than the “joint endeavour” (being that the ticket was purchased during the parties’ relationship).

Finding at First Instance

The Court held at first instance that in addition to noting that the lottery money had been retained separately along with the $190,000 that the husband inherited in 2007 from his mother’s estate, it was clear that the parties kept their assets and finances separate from each other. They each had separate bank accounts and the wife attested to this when she responded that it was always her husband’s request that their respective accounts be kept separate and that the husband never wanted a joint account. The Court found that the husband’s weekly lottery purchase was not intended to be a “joint matrimonial purchase”. Further, the wife did not have practical control of the family finances.

The Full Court

According to the Full Court, it was better to approach the issue as one of a ‘contribution’ rather than a ‘windfall’ for the simple reason that the latter isolates the asset into a special category outside the traditional approach family law property proceedings (applying section 79 of the Family Law Act) dealing with the contribution of the parties.

The Full Court perceived the critical question in such cases to be ‘who is the contribution made by’. In ordinary marriages, the ticket would be purchased by one of the parties to the marriage with money that he or she happens to have at that particular time. Therefore, it is widely acknowledged that irrespective of the parties’ financial positions or otherwise, the purchase of a ticket would be regarded as a purchase from joint funds in the same way as any other purchase within that context and would be treated accordingly. It would equally apply if one party was working and the other was not as it is the type of partnership selected by the parties.

The Court explained that generally this approach would be adopted, however, there are times and situations where this is not the practicality of the matter at hand. The Full Court in Eufrosin & Eufrosin [2014] FamCAFC 191 adopted a similar approach. In this case the wife had purchased a winning lottery ticket six months after the parties had separated. The winnings were $6,000,000 of which the wife gave her sister $1,000,000 and kept the remaining $5,000,000.

According to the Court, the origin of the funds should not determine the issue of how a lottery win should be treated for the purposes of section 79 of the Family Law Act (which deals with contributions of the parties). What is critical here is the nature of the parties’ relationship at the time the lottery ticket was purchased.

Conclusion

The Full Court found that the purchase was initiated by the husband independently of the wife, consistent with a lengthy practice of the husband’s alone that pre-dated the relationship by about eight years. Rather than share or utilise any of the proceeds with the wife, the husband continued to treat his property as his solely. The wife accepted that this was the husband’s intention even if she was dissatisfied with this.

The wife’s appeal was dismissed with the contribution being recognised as one by the husband and not a joint contribution.

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