Assets Owned Before a Relationship
What happens if I brought a lot into the relationship and my partner brought nothing?
An initial contribution is not carried forward as a fixed mathematical proportion. It is one factor to be weighed, and its significance may be eroded by the other party’s later contributions, increasingly so the longer the relationship.
Where the initial asset remains intact and has appreciated, it is valued having regard to its value at trial or realisation, but always weighed holistically against every other contribution and not quarantined.
Additionally, the erosion of the weight given to an initial contribution is not automatic; a substantial, still intact initial asset may retain great weight over a short relationship.
That being said, the Court constantly reminds people that the facts of a matter need to be weighed holistically, and to focus on an initial contribution, or any thing for that matter, risks an error occuring in the process leading to an appeal.
In the case of Benson and Drury, (in which Mr Liam Sambrook was the instructing trial and appeal solicitor for the wife with Ms Maurine Pyke QC), the husband in that matter brought a beach house valued at approximately $900,000 at the time of trial.
The relationship was approximately 7 years, the house was in the husband’s sole name and had been for the entire relationship. Notwithstanding the large initial contribution, which was completely isolated and “quarantined” from the other assets of the relationship, the wife received 60% of the asset pool. The Court found that family violence, care of children, the wife’s contributions and a myriad of other factors meant that the husband did not receive an adjustment in his favour.
The husband appealed, inter alia, on the basis that the Court didn’t give him enough “credit” for the initial contribution of the very valuable house. The husband’s appeal was dismissed.
The case of Benson and Drury is a prime example of the risks of focusing too much on an initial contribution to the exclusion of other factors.
See also:
Benson & Drury [2020] FamCAFC 303
Jabour & Jabour[2019] FamCAFC 78
Williams & Williams[2007] FamCA 313