Penzikis v Brown

The matter before the Family Court was an application by Penzikis for an order pursuant to the Property (Relationships) Act 1984. Penzikis sought an equitable share of the assets of the parties following the breakdown of their relationship. The respondent, Brown, opposed the application on the basis that the relationship between the parties was a same-sex relationship, which commenced prior to the amendment of the Property (Relationships) Act by the Property (Relationships) Legislation Amendment Act 1999. Brown contended that the legislation as it stood did not apply to same-sex relationships and that therefore Penzikis had no grounds for an application under the Act.

The court was required to determine whether the Property (Relationships) Act applied to the relationship between the parties, and if not, whether Penzikis could succeed in an alternative claim for a constructive trust. The court found that the Act did not apply to the relationship as it existed prior to the 1999 amendment and that the relationship had ended prior to the amendment coming into effect. However, the court did find that Penzikis was entitled to an equitable share of the parties' assets by way of a constructive trust based on the principles in Baumgartner v Baumgartner.

The court found that Penzikis and Brown had entered into a de facto relationship prior to the commencement of the 1999 amendment, and that Penzikis had contributed to the acquisition and maintenance of the parties' assets. The court held that Penzikis was entitled to an equitable share of the assets by way of a constructive trust, as the parties' conduct indicated that they had a shared intention that Penzikis would have an interest in the assets. The court made orders for a constructive trust in favour of Penzikis, granting her an equitable share of the parties' assets.