{"id":46536,"date":"2025-01-26T23:51:38","date_gmt":"2025-01-26T23:51:38","guid":{"rendered":"https:\/\/goldman-lawyers.com\/?p=46536"},"modified":"2025-01-26T23:54:45","modified_gmt":"2025-01-26T23:54:45","slug":"court-adjusts-contributions-in-a-long-term-de-facto-relationship-where-financial-agreement-ineffective","status":"publish","type":"post","link":"https:\/\/goldman-lawyers.com\/envirounment\/court-adjusts-contributions-in-a-long-term-de-facto-relationship-where-financial-agreement-ineffective\/","title":{"rendered":"Court Adjusts Contributions in a Long-Term De Facto Relationship where Financial Agreement Ineffective"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"46536\" class=\"elementor elementor-46536\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-62d649e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"62d649e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1eda5c9\" data-id=\"1eda5c9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-479b3ab elementor-widget elementor-widget-text-editor\" data-id=\"479b3ab\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.0 - 06-12-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><strong>Keywords: property;<\/strong> settlement; de facto; section 75(2); section 79; initial contribution; financial contribution; other factors.<\/p>\n<p>The case of Marks &amp; Xander [2016] FCCA 282 (15 February 2016), was a property settlement matter between separated de facto parties which was heard by the Federal Circuit Court of Australia.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9aea6e8 elementor-widget elementor-widget-heading\" data-id=\"9aea6e8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.0 - 06-12-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h3 class=\"elementor-heading-title elementor-size-default\">Background<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c0a7ed0 elementor-widget elementor-widget-text-editor\" data-id=\"c0a7ed0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The parties met about March 2000 and entered into a de facto relationship.\u00a0 They remained together for about 13 and a half years after which they separated.\u00a0 The parties did not have any children together.\u00a0 At the time of the hearing, both parties were 54 years of age.<\/p>\n<p>At the time of entering into the relationship, the de facto wife had little in the way of assets to contribute.\u00a0 The de facto husband had an unencumbered house (\u201cC Property\u201d) which was worth about $175,000.00 and which both the parties moved into at the time of commencing their relationship.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5232a3a elementor-widget elementor-widget-heading\" data-id=\"5232a3a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Ineffective Financial Agreement<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9773cb0 elementor-widget elementor-widget-text-editor\" data-id=\"9773cb0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The parties entered into an agreement stating that if they separated the de facto wife would not attempt to pursue the de facto husband\u2019s interest in the C Property.<\/p>\n<p>The Court considered the agreement and found that it was not a valid Binding Financial Agreement under the <em>Family Law Act<\/em> and therefore the financial agreement would not prevent the Court from taking the C Property into account in the property settlement.\u00a0 However, the Court stated that the intention behind the financial agreement would still be a factor that needs to be considered.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-46920c6 elementor-widget elementor-widget-heading\" data-id=\"46920c6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Contributions during Relationship<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c9a7cfb elementor-widget elementor-widget-text-editor\" data-id=\"c9a7cfb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<!-- wp:paragraph -->\n<p>The Court considered each party\u2019s contributions during the relationship and the terms of the relationship.\u00a0 This included that the parties had lived together from the outset in the de facto husband\u2019s unencumbered property.\u00a0 The parties had a close relationship which included socialising together; spending time with the de facto husband\u2019s parents who lived nearby, plus the de facto wife had taken the de facto husband\u2019s parents on holiday and had assisted with their care as they were advanced in age.<\/p>\n<p>The de facto wife had worked both casual and part-time jobs during the relationship and had made some financial contributions to the standing of the relationship.\u00a0 Since 2011 the de facto wife had not worked which she claimed was due to illness.\u00a0 However, there appeared to be a lack of evidence supporting these grounds.\u00a0 The de facto wife was assessed as having a short working life ahead of her as she was 54 years of age.<\/p>\n<p>The de facto husband was working on a full-time basis earning about $47,000.00 per annum in secure employment.\u00a0 The Court considered that the employment involved manual labour and this would affect the de factor husband\u2019s ability to continue working.<\/p>\n<p>It was accepted that the de facto wife did most of the domestic duties and cleaning during the relationship.\u00a0 Both parties contributed to the upkeep and care of their pets.<\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-56ec7c5 elementor-widget elementor-widget-heading\" data-id=\"56ec7c5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Assessment of Contributions<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0038d35 elementor-widget elementor-widget-text-editor\" data-id=\"0038d35\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In this matter, the de facto husband brought significant contributions to the relationship.\u00a0 The parties had a close relationship and supported each other financially.\u00a0 The de facto wife had worked on a casual or part-time basis but ceased working in 2011.\u00a0 The de facto husband had worked full time during the relationship and had made superior income contributions.\u00a0 The de facto wife had made significant contributions to the domestic duties and looking after the de facto husband\u2019s parents.<\/p>\n<p>Based on these factors, the Court initially made a property division of 72.5\/27.5 in the de facto husband\u2019s favour.\u00a0 Upon consideration of future needs, the Court made a 5% adjustment in the de facto wife\u2019s favour as she was unemployed and would have difficulty finding employment.<\/p>\n<p>Significantly, the Court outlined that a sizable initial contribution will be diminished significantly due to contributions during the relationship and especially where the relationship is of a long duration.<\/p>\n<p id=\"block-7655030d-15ad-471e-9a89-ebe880a13299\" class=\"block-editor-rich-text__editable block-editor-block-list__block wp-block is-multi-selected is-partially-selected wp-block-paragraph rich-text\" role=\"document\" contenteditable=\"true\" aria-multiline=\"true\" aria-label=\"Block: Paragraph\" data-block=\"7655030d-15ad-471e-9a89-ebe880a13299\" data-type=\"core\/paragraph\" data-title=\"Paragraph\" data-empty=\"false\"><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-094b9ae elementor-widget elementor-widget-heading\" data-id=\"094b9ae\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c5a1d99 elementor-widget elementor-widget-text-editor\" data-id=\"c5a1d99\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>The Appellate Court was made up of Judge Strickland, Judge Murphy and Judge Watts.\u00a0 The Court considered the trial judge\u2019s decision and focused particularly on his determination that the husband would have a shorter life expectancy due to illness.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>The Court considered the case of <em>Lawrie and Lawrie<\/em> (1981) FLC 91-102 where that Court had to determine a matter where a party had terminal cancer and would only live a further 6 months.\u00a0 This case included comments \u201cby the way\u201d\u00a0that an adjustment should only be made where life expectancy was determinable, otherwise it would \u201copen the flood gates\u201d as to the future life expectancy of parties.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>The Court next considered the unreported case o<em>f S &amp; P<\/em> of the Family Court of Australia (22 April 1997) which dealt with a husband who had HIV and was thought to have a life expectancy of 5 years.\u00a0 That court considered <em>Lawrie<\/em>\u00a0, and stated that the principles from <em>Lawrie<\/em> were correct but ultimately a judge could use their discretion with regard to health issues.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>The Court turned its attention to the trial judge\u2019s conclusion that on the evidence the husband\u2019s life expectancy could not be determined with any accuracy.\u00a0 Despite this, the trial judge made an adjustment in the wife\u2019s favour because the husband was likely to have a shorter life expectancy.\u00a0 The Court found the trial judge was in error in making this finding without being able to provide a measurable period of life expectancy for the husband.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-679c626 elementor-widget elementor-widget-heading\" data-id=\"679c626\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5de99f4 elementor-widget elementor-widget-text-editor\" data-id=\"5de99f4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In this matter, the husband had diabetes and renal failure resulting in the possibility that the husband would have a shorter life expectancy compared to the wife.\u00a0 Under section 75(2) of the Act, when considering spousal maintenance, a court may take into account a shorter life expectancy of a party and how this will affect the future needs of the parties.<\/p>\n<p>In this case, the trial judge concluded that he could not determine the husband\u2019s life expectancy based on the evidence, but he still found that the husband was likely to have a shorter life expectancy.\u00a0 The Appellate Court found the trial judge erred and that life expectancy should be taken into account only when a determination as to the likely period of life expectancy can be made.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Keywords: property; settlement; de facto; section 75(2);<\/p>\n","protected":false},"author":1,"featured_media":45654,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[218],"tags":[],"class_list":["post-46536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.14 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Court Adjusts Contributions in a Long-Term De Facto Relationship where Financial Agreement Ineffective - Goldman Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldman-lawyers.com\/court-adjusts-contributions-in-a-long-term-de-facto-relationship-where-financial-agreement-ineffective\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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