ADAM and Rebecca separate after a 20 year relationship.

They have one adult child.

Adam owns shares in a company that operates a business.

The parties agree that the business is worth $500,000.

They jointly own their matrimonial home, worth $1.5m, subject to a $500,000 mortgage.

They each have personal effects and motor vehicles as well as credit card debts.

The parties’ superannuation totals $300,000.

Rebecca received a $200,000 inheritance, post separation.

They each claim that they are entitled to a 60 percent share of the pool of assets and after an unsuccessful mediation, Adam files an Initiating Application seeking property settlement orders in the Federal Circuit and Family Court of Australia.

The Court rules that Adam made no contribution towards Rebecca’s inheritance and excludes it from the asset pool.

The Court accepts that Rebecca brought $60,000 into the relationship, by way of a “initial contribution”.

The Court finds that Adam’s mother gifted substantial funds to the parties, which were used to renovate the matrimonial home.

In the circumstances, which included the husband’s contribution regarding the income derived from the running of the business, the Court determines that the contributions by the parties were 57.5 percent in Adam’s favour.

In considering Adam’s greater future earning potential, the Court makes a further adjustment of 2.5 percent in Rebecca’s favour, ultimately ruling that she receive 45 percent of the asset pool.

The Court Orders that some of Adam’s superannuation is allocated to Rebecca and that if Rebecca wishes to retain the matrimonial home and car, she will need to refinance the home mortgage in her name and pay Adam an additional $400,000.

The Court further orders that if Rebecca is unable to obtain sufficient finance, that the home be listed for sale and the proceeds ultimately divided 55 percent in Adam’s favour.

The Court Orders that Adam retains his shares in the company and that the parties otherwise retain the assets and liabilities in their respective names.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This column is only accurate at today’s date and is not legal advice.

By Manny WOOD, Solicitor