[2025] FedCFamC2F 413
General information, not legal advice.
Federal Circuit and Family Court (Div 2)
2025-03-31
Original judgment source is linked above.
where an inference is open from facts proved by direct evidence and the question is whether it should be drawn, in the circumstance that the defendant disputing it might have proved the contrary had he chosen to give evidence is properly to be taken into account as a circumstance in favour of drawing the inference.
Is it conceded that the wife's parents gifted the parties funds in about the sum of about $1,699,000 during the marriage?
Rent free accommodation - average $400 per week for 6.5 years
Live-in Housekeeper Wages ($3,000 per month) for 12 months
Loan support by providing Ms Blayne a stead income ($3,000 per month)
Did the husband perpetrate family violence against the wife? If so were the wife's contributions made more difficult by the husband's conduct in terms of Kennon?
(1) For the purposes of this Act, family violence means violent, threatening or other behaviour by a person that coerces or controls a member of the person's family (the family member), or causes the family member to be fearful.
(2) Examples of behaviour that may constitute family violence include (but are not limited to):
Coercive control involves perpetrators exerting power and dominance over victim-survivors using patterns of abusive behaviour that create fear and deny liberty and autonomy. Perpetrators may use physical or non-physical abusive behaviours, or a combination of both.
(a) He conceded that he had repeated the saying that wives need to be bashed every three days;
(b) He agreed that he said the wife needed to respect him, clarifying that both parties to a relationship needed to respect each other;
(c) He conceded there were times he got frustrated with the wife but that he forgave her;
(d) He conceded there were times when both parties were upset and did not talk when they were upset;
(e) He agreed that the wife struggled with her mental health;
(f) He conceded that on occasion he told the wife she was stupid;
(g) He conceded that he had received a yellow envelope containing articles about marital rape. The wife's evidence is that she had provided that to the husband. The husband gave evidence that he was upset to receive the articles; and that he did not initially know who had sent them;
(h) He conceded he asked the wife who she had told about the marriage; and
(i) He conceded that he was unhappy about the wife seeing a psychologist and that he felt hurt about her involvement in group therapy - that he did not think it would make anything better.
(a) The detail provided in her affidavit evidence, not only as to what occurred but her evidence as to the impact on her mental health and the long term nature of the alleged conduct are persuasive;
(b) Her evidence under cross-examination was consistent with her affidavit evidence;
(c) She made sensible concessions, such as conceding that she had not previously raised the allegations of family violence in affidavit or correspondence form;
(d) The documents tendered reflect that she had reported marital abuse during her hospital admission in 2015 - stating that it was mainly in the form of manipulation and emotional abuse;[16]
(e) The records from 2015 reflect that the wife was already expressing reluctance to take the matter any further;
(f) I found it difficult to accept the husband's evidence that he did not recall aspects of the occasion when the police were called and attended at the home; and
(g) In the concessions that were made by the husband, there was a degree of mutualisation, indicating a failure to accept responsibility which supports the wife's contention that he blamed her.
(a) I accept the wife's evidence as to the impact on her of the family violence;
(b) I accept that she felt exhausted;
(c) I accept that it impacted her mental health struggles; and
(d) I accept that she struggled to attend to household tasks and that she believes that this was due to the impact on her of the husband's conduct.
The central question raised by this appeal is how a judge takes into account the contributions of one party, found to have been made significantly more arduous by the conduct of the other, when assessing contributions under ss 79(4)(a)-(c) or ss 90SM(4)(a)-(c) of the Act. The answer is the primary judge must take a holistic approach. The contributions which have been made significantly more arduous have to be weighed along with all other contributions by each of the parties, whether financial or non-financial, direct or indirect to the acquisition, conservation and improvement of property and in the role of homemaker and parent. All contributions must be weighed collectively and so it is an error to segment or compartmentalise the various contributions and weigh one against the remainder.
(Citations omitted)
Has the husband failed in his disclosure obligations and if so what should the consequences of that failure be?
The usual way in which defective disclosure is taken into account is either by adding a sum to the pool, reflective of an estimate of the value of undisclosed property ..., or under s 75(2)(o) of the Act. ...
Finally, and of great significance, is the husband's non-disclosure of his financial position. It is substantial. It would appear that the husband's business dealings in China involve sums of money greatly in excess of the assets presently in Australia. He appears to have under his control significantly large (in terms of the assets in Australia) sums of cash which he lends out for profit. At least until late 2012 he carried on a substantial and significant business in Australia under the name Mr F with a gross income of hundreds of thousands of dollars a year.
Where there has been deliberate non-disclosure the court should not be unduly cautious about making findings in favour of the innocent party. It may well be appropriate to err on the side of generosity. Black & Kellner [1992] FamCA 2; (1992) FLC 92-287; Weir and Weir [1992] FamCA 69; (1993) FLC 92-338 and Kannis & Kannis [2002] FamCA 1150; (2002) 172 FLR 464.
The husband's non-disclosure is deliberate and extensive. The evidence suggests that he has earned a substantial income and holds assets that exceed the assets the subject of these proceedings. The appropriate adjustment, therefore, is one that would see the wife receive all, or nearly all, of the available assets in Australia.
Is it conceded that the husband's father renovated the properties purchased by the parties free of charge - supplying labour, the labour of his employees and the materials?
Determining whether it is just and equitable to make Orders
(a) this was a long term relationship of more than thirty years;
(b) The parties had two children;
(c) there is a multi-million dollar asset pool approaching about $7 million, consisting significantly of real properties held in joint names;
(d) both parties have made significant financial and non-financial contributions to those assets;
(e) the financial contributions included significant monetary gifts from each party's family;
(f) the non-financial contributions included significant contributions from the husband's family in the form of renovations;
(g) there were significant contributions from the wife's family including free accommodation for lengthy periods, payment of private school fees and loans;
(h) there is significant dispute about what constitutes the asset pool and the contributions made by each party and their families.
Determining the pool available for distribution
N Pty Ltd, including as trustee for the Mr Blayne Family Trust:
Shares + Interests in property
U Group, U Group, V Company, V Company, W Company, X Group, Y Company, Z Company, AA Company, BB Company, BB Company
Contents of Commonwealth Bank Safety Deposit
Box containing jewellery and cash
CGT liability on sale of Suburb G & Suburb J property by wife
CGT liability on sale of Suburb G & Suburb J property by husband
Loan from TT Finance ($currently $26,654 for legal fees)
Approximate Market Rental Income Suburb J property (property currently vacant)
Item 3 - N Pty Ltd, including as trustee for the Mr Blayne Family Trust: Shares + Interests in property
Where a person purchases property in the name of another, or in the name of himself and another jointly, the question whether the other person, who provided none of the purchase money, acquires a beneficial interest in the property depends on the intention of the purchaser. However, in such a case, unless there is such a relationship between the purchaser and the other person as gives rise to a presumption of advancement, i.e., a presumption that the purchaser intended to give the other a beneficial interest, it is presumed that the purchaser did not intend the other person to take beneficially. In the absence of evidence to rebut that presumption, there arises a resulting trust in favour of the purchaser. Similarly, if the purchase money is provided by two or more persons jointly, and the property is put into the name of one only, there is, in the absence of any such relationship, presumed to be a resulting trust in favour of the other or others. For the presumption to apply the money must have been provided by the purchaser in his character as such - not, e.g., as a loan. Consistently with these principles it has been held that if two persons have contributed the purchase money in unequal shares, and the property is purchased in their joint names, there is, again in the absence of a relationship that gives rise to a presumption of advancement, a presumption that the property is held by the purchasers in trust for themselves as tenants in common in the proportions in which they contributed the purchase money.
(References omitted)
(a) That the husband's parents made the contribution to the purchase price; see Lam v Lam [2016] VSC 298 at [20]- [21].
(b) That the money the husband's parents paid was not intended as a loan or gift to the parties but was intended as a contribution to the purchase price.
(c) If the court is so satisfied, there then arises from that a presumption that the husband's parents intended to gain a beneficial interest from that contribution.
(d) Unless there is evidence to the contrary, then the husband's parents have the benefit of a resulting trust to the extent of their proportional contribution to the purchase price.
(a) The wife's affidavit evidence is that 2 D Street was purchased without a mortgage, 3 D Street was purchased with a mortgage for $600,000 loan in the name of all three owners. 1 D Street was purchased with a loan in the sum of $480,000 in the joint name of N Pty Ltd and the husband's brother Mr MM.
(b) The husband's affidavit evidence (as corrected at trial) is that 2 and 3 D Street were purchased for $270,000 each in 1998 and 1 D Street for $350,000 in 2003. His recollection is that the mortgage for 1 D Street was indeed $480,000, which does not make much sense of the purchase price was $350,000.
(c) The best evidence however are the documents tendered[20] which reflect the purchase price of 2 D Street as $355,000, 3 D Street as $270,000 and 1 D Street as $750,000. The mortgage with LL Bank for the purchase of 2 and 3 D Street has the names of the three companies - being N Pty Ltd for the parties, UU Pty Ltd for the husband's sister, and PP Pty Ltd for the husband's parents. Those documents do not reveal the amount of each mortgage. The mortgage with ANZ for the purchase of 1 D Street has the names of N Pty Ltd and the husband's brother as an individual but again not the amount of the mortgage.
(a) the long-term generosity of each party's parents - the parties had often been gifted money or services by both of their families over many years and to many properties; and
(b) the fact that there has been no real accounting for the rental income, by the husband or evidence brought by him from his mother, although there appears to be some general acceptance that it was applied to the expenses for the properties including the mortgages.
(a) It is not disputed that the parties made no direct cash contribution to the purchase price of the properties. They are however named on the title, and they are named on the mortgage. So they contributed to the purchase to the extent of their mortgage obligation and it is the contribution to the purchase price that matters, not any subsequent contribution to mortgage payments or the like.
(b) It is argued by the husband that the presumption of advancement in this case is rebutted by the intentions of all involved. It is submitted for the husband that the intentions of the parties at the time the purchase took place are clear. I do not agree. There is no evidence of that aside from what the husband and his brother attest, and indeed his brother's evidence is that there is no evidence as to intention in circumstances where the proposed redevelopment did not occur. There are no documents that can definitively settle this issue.
Item 19 - M Bank #...63:the wife's joint account with her sister
Item 31 - The Husband's M Bank #...15 (@25.5.24)
The Contents of Commonwealth Bank Safety Deposit Box containing jewellery and cash
(a) where the parties have expended money on legal fees;
(b) where there has been a premature distribution of matrimonial assets; and
(c) where one of the parties has embarked upon a course of conduct designed to reduce or minimise the effective value or worth of matrimonial assets or has acted recklessly, negligently or wantonly with matrimonial assets, the overall effect of which has reduced or minimised their value.
Proposed Addback - the balance of sale proceeds of the Suburb G Business
Proposed Addback - the net sale proceeds of the City C property
(a) She has failed to bring her mother to give evidence about the intention; and
(b) The wife's family have been generous to the parties throughout the relationship, such that it is consistent with their former behaviour that this was a gift.
Should the Suburb G property be sold as sought by the wife?
(a) The husband has not provided any evidence that he will be able to borrow funds to refinance this property. He is however employed so there is likely some capacity to borrow but the extent is unknown;
(b) He concedes that his cash resources together with the funds from surrendering his life policy is, at its height, around $351,000;
(c) The Suburb G property is an income producing asset with both levels capable of bringing in a combined monthly income of about $9,474.52;
(d) The husband has however given evidence of an intention to live in the property and thus reduce its income producing capacity;
(e) The valuation reflects a possible rezoning of the area with the possibility to re-develop in the future, noting that the husband's family have developed property in the past;
(f) At the time of trial the husband was living with a female friend and had done so for about nine months. His evidence was that he intended to move out but there was no other evidence about that relationship;
(g) The value of the Suburb G property is based on a single expert valuation and is an agreed value;
(h) Sale would give each party certainty as to cash resources with which to move forward.
To answer the questions posed at the commencement of these reasons as applicable at this stage:
What values should be given to items in contest in the Balance Sheet?
Should the funds held in the M Bank account #...15 form part of the matrimonial asset pool?
Should there be any addbacks, including the proceeds of sale of the City C property?
Should the court include in the asset pool an amount for CGT in respect of the sale of the Suburb G and Suburb J properties?
Are the three properties in which N Pty Ltd held on trust for the husband's family or are they part of the pool available for distribution?
The asset pool available for distribution between the parties
Evaluation of section 79(4) - Contribution Issues
...the requirements of the section are met by approaching the assessment of contributions holistically and by analysing the nature, form, characteristics and origin of the property currently comprising that to which s 79 applied, and, in turn, analysing the nature, form and extent of the contributions (of all types) contemplated by s 79.
Evaluation of Section 75(2) factors - Future Needs
U Group, U Group, V Company, V Company, W Company, X Group, Y Company, Z Company, AA Company, BB Company, BB Company
Contents of Commonwealth Bank Safety Deposit
Box containing jewellery and cash
CGT liability on sale of Suburb G & Suburb J by wife
N Pty Ltd, including as trustee for Mr Blayne Family Trust:
Shares + Interests in property
CGT liability on sale of Suburb G & Suburb J properties by husband
I certify that the preceding two hundred and twenty-six (226) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Cope.
N Pty Ltd, including as trustee for the Mr Blayne Family Trust:
Shares + Interests in property
U Group, U Group, V Company, V Company, W Company, X Group, Y Company, Z Company, AA Company, BB Company
Contents of Commonwealth Bank Safety Deposit
Box containing jewellery and cash
CGT liability on sale of Suburb G & Suburb J properties by wife
CGT liability on sale of Suburb G & Suburb J properties by husband
[1] As per Affidavit of wife dated 18/07/2024, paragraph 68
[4] The varying evidence as to the purchase price of the Suburb E properties is addressed when findings are made as the asset pool available for distribution between the parties
[9] Bevan & Bevan [2013] FamCAFC 116; (2013) FLC 93-545 at [86].
[10] Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8
[11] RPS v The Queen [2000] HCA 3; [2000] 199 CLR 620
[12] AIJA National Domestic and Family Violence Bench Book
[14] Sweet & Sweet [2022] FedCfamC2F 676
[17] BCI Finances Pty Ltd (in liq) v Binetter (No 4) [2016] FCA 1351; (2016) 348 ALR 227 at [124].
[18] Exhibit W23, noting that item 3 was further amended in submissions.
[19] Calverley & Green [1984] HCA 81; (1984) 155 CLR 242 at 251, 257 - 258 and 267 - 268
[24] Trevi & Trevi [2018] FamCAFC 173; (2018) FLC 93-858 at [28]- [30]
[25] M & M [1998] FamCA 42
[26] C & C [1998] FamCA 143 at [46]
BCI Finances Pty Ltd (in liq)
Binetter
BCI Finances Pty Ltd (in liq) v Binetter (No 4) [2016] FCA 1351; (2016) 348 ALR 227
Bloch v Bloch [1981] HCA 56; (1981) 180 CLR 390
Calverley v Green [1984] HCA 81; (1984) 155 CLR 242
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298
Lam v Lam [2016] VSC 298
Mallet v Mallet [1984] HCA 21; (1984) 156 CLR 605
Norbis v Norbis [1986] HCA 17; (1986) 161 CLR 513;
RPS v The Queen [2000] HCA 3; [2000] 199 CLR 620
Stanford v Stanford [2012] HCA 52; (2012) FLC 93-518
(2016) 348 ALR 227
(1981) 180 CLR 390
(1984) 155 CLR 242
(2012) 50 FamLR 244
(1959) 101 CLR 298
(2002) 172 FLR 464
(1984) 156 CLR 605
(2022) 64 Fam LR 633
(1986) 161 CLR 513