FAY & FAY

In the matter of FAY & FAY, Rees J of the Family Court of Australia considered a property settlement dispute between a husband and wife. The sole significant asset in the matrimonial pool was jointly owned land. The dispute centred on the division of this asset and the treatment of insurance money received by the wife after separation.

The court was required to determine how to treat insurance money received by the wife for damage to the jointly owned matrimonial home, which was paid under a policy in her sole name. Specifically, the court had to decide whether this money should be added back into the matrimonial pool for division, or if it should be considered under section 75(2) of the Family Law Act 1975 (Cth) as a financial resource or other relevant factor. The court also needed to determine the appropriate division of the jointly owned land.

Rees J found that the parties' contributions to the marriage until separation were equal. The court declined to add back the insurance money into the matrimonial pool, finding that while the husband had made an indirect contribution to the insurance proceeds through his contributions to the matrimonial home, the wife had spent the entirety of the money received. Instead, the court took the insurance money into account under section 75(2) of the Family Law Act 1975 (Cth) when considering the overall financial position of the parties. The court ordered that the jointly owned land be transferred to the husband.