An initial contribution in a short de facto relationship

The case of Cook v Langford (2008) FLC 93-374 is an example of a short de facto relationship wherein the initial contribution is ruled in favour of the contributor due to the unequal contributions of the other party to the relationship. This is also a case wherein the trial judge departed from the usual way of expressing contribution findings in percentage.
Facts of the case:

The wife entered the relationship with assets at approximately at approximately $14.5 million. She also had controlling shares in a group of companies. The husband was bankrupt. The relationship lasted for about 5 ½ years. During the relationship the assets of the wife changed and after separation her shares in one company sold for $45 million.

The adjusted net assets of the couple amounted to over $65.6 million. The trial judge ruled adversely against the husband and found that his alleged contributions were inflated. He was awarded $1 million. The wife was ordered to release her husband from any debt in the total amount of just under $2.5 million. The trial judge explained that the usual way of expressing contributions in percentage is not mandatory.
The husband appealed.

Issue:
Whether or not it was proper to assess the contributions in monetary figure rather than percentage
Ruling:
The Full Court ruled, "In the circumstances of this case, it was well open to find that it was inappropriate and/or artificial to attempt to evaluate the actual contributions of the husband as a percentage of the large pool of assets which were sourced exclusively from the wife’s sole pre-marriage assets, maintained and improved significantly by her during the marriage, and substantially increased post separation as a result of the sale, engineered by the wife, of a company to another enterprise."

This article provides basic information only and is not a substitute for a professional or legal advice . It is prudent to obtain legal advice from a Family Lawyer when contemplating a separation or soon after a relationship comes to an end.

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