ON v ON

The Full Court of the Family Court of Australia heard an appeal concerning property settlement orders made between a husband and wife. The parties had been married for a significant period and had accumulated substantial assets through their joint efforts and the husband's business acumen, including multiple properties and pharmacies. The dispute arose from the husband's unilateral decision to establish a new pharmacy, which impacted the turnover of an existing pharmacy, and the subsequent disagreement over the division of their considerable asset pool.

The primary legal issues before the Full Court were whether the trial judge erred in his valuation of the old pharmacy, whether the trial judge correctly determined the contributions of each party to the acquisition, improvement, and conservation of the property pool, and whether the adjustment made in favour of the wife was appropriate. The court also considered the husband's argument that the trial judge had failed to adequately consider his contributions and the wife's argument that the trial judge had not sufficiently accounted for her contributions and the husband's conduct.

The Full Court found that the trial judge had made no error in his valuation of the old pharmacy, nor in his assessment of the parties' contributions to the asset pool, which he determined to be equal. However, the Full Court held that the trial judge had erred in his adjustment of 5% in favour of the wife. The court reasoned that while the husband's superior earning capacity, the wife's obligations to adult children, and the husband's post-separation conduct were relevant considerations, the trial judge had not provided sufficient justification for the specific percentage adjustment made. The court also noted that the trial judge had failed to make specific orders regarding the maintenance of the adult children, despite this being a point of contention.

Consequently, the Full Court set aside the trial judge's orders and remitted the matter back to the Family Court for redetermination of the adjustment to be made to the property settlement and for the making of appropriate orders regarding the maintenance of the adult children.