Blayne & Blayne

Case [2025] FedCFamC2F 413


FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

(DIVISION 2)

Blayne & Blayne [2025] FedCFamC2F 413

File number(s): SYC 5796 of 2022
Judgment of: JUDGE COPE
Date of judgment: 31 March 2025
Catchwords:  FAMILY LAW – Matrimonial property division – where relationship of over 30 years – where two adult children – where both parties’ families made significant financial and /or non-financial contributions – where extent of those contributions in dispute - where arguments of resulting trust and presumption of advancement made – where each party sought to exclude assets from the pool available for distribution – where the applicant relied on a Kennon argument – where dispute as to whether real property should be sold or retained by the respondent – where dispute as to how CGT should be addressed – where dispute as to value of assets in the pool – where add backs sought - where two pool approach adopted – where real property to be sold – where Kennon argument successful    
Legislation:

 Corporations Act 2001 (Cth)

Family Law Act 1975 (Cth) ss 4AB, 75, 79, 106A

AIJA National Domestic and Family Violence Bench Book

Cases cited:

 BCI Finances Pty Ltd (in liq) v Binetter (No 4) (2016) 348 ALR 227

Benson & Drury (2020) FLC 93-998

Bevan & Bevan (2013) FLC 93-545

Black & Kellner (1992) FLC 92-287

Bloch v Bloch (1981) 180 CLR 390

Bosanac v Commissioner of Taxation (2022) FLC 94-107

C & C [1998] FamCA 143

Cahill & Cahill (2006) FLC 93-253

Calverley v Green (1984) 155 CLR 242

Dickons v Dickons (2012) 50 FamLR 244

Hickey & Hickey (2003) FLC 93-143

Jones v Dunkel (1959) 101 CLR 298

Jones v Dunkel [1959] HCA 8

Kannis & Kannis (2002) 172 FLR 464

Kennon v Kennon [1997] FamCA 27

Lam v Lam [2016] VSC 298

M & M [1998] FamCA 42

Mallet v Mallet (1984) 156 CLR 605

Mayhew & Fairweather (2022) 64 Fam LR 633

Norbis v Norbis (1986) 161 CLR 513;

Omacini & Omacini (2005) FLC 93-218

Pickford & Pickford [2024] FedCFamC1A 249

RPS v The Queen [2000] 199 CLR 620

Stanford v Stanford (2012) FLC 93-518

Sweet & Sweet [2022] FedCFamC2F 676

Trevi & Trevi (2018) FLC 93-858

Wallis & Manning (2017) FLC 93-759

Weir & Weir (1993) FLC 92-338

Yang & Gian and Ors [2014] FamCA 934

Division: Division 2 Family Law
Number of paragraphs: 226
Date of last submission/s: 14 August 2024
Date of hearing: 12, 13, 14 August 2024
Place: Sydney
Counsel for the Applicant: Mr Petrie
Solicitor for the Applicant: Watts McCray
Counsel for the Respondent: Mr Fermanis
Solicitor for the Respondent: Diamond Conway Lawyers

ORDERS

SYC 5796 of 2022

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)

BETWEEN:

MS BLAYNE

Applicant

AND:

MR BLAYNE

Respondent

ORDER MADE BY:

JUDGE COPE

DATE OF ORDER:

31 MARCH 2025

THE COURT ORDERS THAT:

NOTING THAT the court has taken a two pool approach with the City C property to be separate from the remaining asset pool, and with…

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AGLC
Blayne & Blayne [2025] FedCFamC2F 413
Case
[2025] FedCFamC2F 413
Decision Date

CaseChat Overview and Summary

The case of Blayne & Blayne, decided by Judge Cope in the Federal Circuit and Family Court of Australia, involved a lengthy and complex dispute between Ms Blayne and Mr Blayne. The couple had been in a relationship for over 30 years and had two adult children. The primary issue was the division of their matrimonial property, with significant disputes over the contributions made by both parties and their families, the application of resulting trusts and presumptions of advancement, and the treatment of certain assets, including real property. Both parties sought to exclude specific assets from the pool available for distribution and raised arguments under the principles of Kennon v Spry. They also disagreed on whether certain real property should be sold or retained and on the application of capital gains tax. The valuation of the assets and the method for calculating the contributions also formed part of the disputes.

The court was required to determine the appropriate pool of assets subject to division, the respective contributions of both parties and their families, the application of resulting trusts and presumptions of advancement, and the manner in which the real property should be handled. Additionally, the court had to address the appropriate method for calculating capital gains tax and the value of the assets. The applicant relied on a Kennon argument to exclude certain assets from the pool. The court adopted a two-pool approach, treating the City C property separately from the remaining assets and including the Suburb E properties in the second pool. The court found in favour of the applicant's Kennon argument and ruled that the City C property should be sold.

The court ordered that the Suburb G property be sold by public auction within fourteen days, with the proceeds to be used to cover expenses and legal fees before being disbursed to the parties in a 52:48 ratio in favour of the wife. The City C property was to be excluded from the asset pool and retained by the wife, while the Suburb E properties formed part of the second asset pool, which was divided between the parties in a 52:48 ratio in favour of the wife. This outcome reflected the court's determination of the respective contributions and the successful application of the Kennon argument by the applicant.

Orders

Orders of the court

SYC 5796 of 2022

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)

BETWEEN:

MS BLAYNE

Applicant

AND:

MR BLAYNE

Respondent

ORDER MADE BY:

JUDGE COPE

DATE OF ORDER:

31 MARCH 2025

THE COURT ORDERS THAT:

NOTING THAT the court has taken a two pool approach with the City C property to be separate from the remaining asset pool, and with the Suburb E properties to form part of the second asset pool

AND FURTHER NOTING THAT each asset pool is as set out in the annexure to this order marked with the letter “A”

AND FURTHER NOTING THAT the wife is to retain the entirety of the asset pool 1 consisting of the City C Property and Asset Pool 2 be divided between the parties 52:48 in the wife’s favour

1. That within fourteen (14) days of the date of these Orders each party shall do all things necessary to cause the property situated at and known as F Street, Suburb G in the State of New South Wales being the whole of the land contained in Folio identifier … (the “Suburb G property”) to be listed for sale and sold by public auction, unless otherwise agreed, at the earliest possible date and for the proceeds of sale to be disbursed as follows and in that priority:

(a) In payment of agent’s commission, marketing, advertising and auction expenses and legal expenses of the sale;

(b) In payment of the balance then remaining to the conveyancing solicitor’s trust account or such other account agreed to by the parties in writing.

2.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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