FORREST & JORDAN

This matter concerned property settlement proceedings between a husband and wife, heard by Johnston J. The parties had been in a relationship for approximately five years, during which both made substantial financial and non-financial contributions. The husband owned a property prior to the relationship, while the wife held an interest in a property development at its commencement. A key dispute involved the characterisation of $200,000 provided by the wife's parents, with the wife asserting it was a loan and the husband claiming it was a gift. Furthermore, the husband sought to be solely liable for any future claims under the *Home Building Act 1989* (NSW) concerning renovations to their property, which had been a joint undertaking. The court also considered the husband's disclosure of his financial circumstances, finding it to be lacking and reflecting poorly on his credit.

The court was required to determine the appropriate division of the parties' property, specifically addressing the repayment of the $200,000 to the wife's parents, the allocation of responsibility for potential future claims under the *Home Building Act 1989* (NSW), and the overall distribution of assets based on their respective contributions and financial conduct. The court also had to consider the impact of the husband's disclosure issues on the assessment of evidence and the final property orders.

Johnston J reasoned that the wife's contributions, both financial and indirect, warranted a greater share of the property, assessing her contributions at 58 per cent. The court accepted the wife's assertion that the $200,000 from her parents was a loan and ordered its repayment. Regarding the *Home Building Act 1989* (NSW) claims, the court found the renovations to be a shared responsibility and ordered that the parties share equally in any future costs. The court also found that the husband's conduct in deliberately allowing arrears to accrue to strengthen his case reflected poorly on his credit, leading the court to prefer the wife's evidence.

The court ordered the repayment of $200,000 to the wife's parents from a specific trust account. The remaining balance in that account was to be divided, with 33.173 per cent to the husband and the rest to the wife. Other accounts were to be closed and their balances divided 58 per cent to the wife and 42 per cent to the husband. The parties were to share equally any future claims under the *Home Building Act 1989* (NSW) related to the property. The court also made orders for mutual indemnities regarding liabilities in each party's name, including tax and credit card debts, and specific provisions for the Registrar to sign documents if a party defaulted on the orders.