LABREC & BARDOW

In the matter of LABREC & BARDOW, Judge Morley of the Federal Circuit Court of Australia considered a property dispute between a de facto couple. The proceedings concerned the division of the de facto marital asset pool, including issues relating to add-backs for legal fees and other funds, and the treatment of the Husband’s annual leave entitlements. The Court also addressed the parties' respective interests in a property located at B Street, Suburb C, New South Wales, where the Husband asserted a lesser beneficial interest than his legal interest.

The primary legal issues before the Court were whether the Husband's annual leave entitlements constituted an asset or financial resource to be included in the de facto marital asset pool, and whether the presumption of advancement applied to the B Street, Suburb C property, and if so, whether it had been rebutted. The Court was required to determine the just and equitable distribution of the parties' property interests pursuant to section 90SF of the Family Law Act 1975 (Cth).

The Court found that the Husband's annual leave entitlements did not form part of the de facto marital asset pool. Regarding the B Street, Suburb C property, the Court determined that the presumption of advancement had been rebutted, finding that the Husband's involvement in the purchase was to aid his parents, and their intention was to retain the beneficial interest. The Court concluded that it was just and equitable to make orders under section 90SM of the Act, finding the parties' contributions to be equal but making a 10 per cent adjustment in favour of the Wife based on factors under section 90SF(3). The orders provided for the transfer of the B Street, Suburb C property to the Applicant, with detailed provisions for its sale if not transferred outright, and included a significant superannuation splitting order in favour of the Applicant.