Liu v Guo

Liu and Guo were before the court in a dispute concerning the adjustment of their property interests following the termination of their de facto relationship. The case was heard in the Family Court of Australia. The primary issue was how to ascertain the pool of divisible property and how to appropriately value and distribute the property between the parties. This included determining the contributions each party made to the relationship, both in terms of property and financial contributions.

The court needed to decide how to evaluate the parties' contributions to the relationship and their respective property interests. It had to determine the appropriate date for ascertaining the pool of divisible property, considering the extensive and unclear dealings with property by both parties since their separation. The court also had to consider whether it was possible to adjust the pool of present property for property used or withdrawn by the parties since the separation and if such an adjustment would be just and practicable. Furthermore, the court needed to assess whether there could be contributions as a homemaker to the welfare of the family after separation, and if so, how these contributions should be valued.

The court held that it was impracticable and potentially unjust to adjust the pool of present property for property used or withdrawn by the parties since separation. It adopted the approach of valuing the pool of property at the date of separation. The court also found that there could be contributions as a homemaker after separation, but the assessment of contributions should focus on who contributed what to the relationship rather than who paid for what. The court rejected the idea of an asset-by-asset approach, stating that the significance of expenditure in the assessment of contributions should not be the primary concern. Instead, the court should consider contributions by property introduced at the outset, by income and accretions of property and domestic contributions during the relationship, and by income and accretions of property and domestic contributions after separation.

The court's final orders will reflect the valuation of the property at the date of separation, the contributions made by each party to the relationship and after separation, and the equitable distribution of the property between Liu and Guo.