Ross v Elderfield

In *Ross v Elderfield*, the New South Wales Court of Appeal considered an appeal from a District Court judgment concerning the division of property following the breakdown of a de facto relationship. The dispute centred on the financial contributions made by each party, including the relevance of an inheritance received by one party and capital gains realised during the relationship, and the appropriate date for valuing assets.

The Court of Appeal was required to determine the correct approach to assessing financial contributions in the context of a de facto relationship, specifically how to weigh initial contributions against those made post-acquisition, and how to account for inheritances and capital gains when calculating a party's entitlement. A further issue was the appropriate date for valuing the parties' assets for the purpose of property division.

The Court applied principles of property adjustment in de facto relationships, considering the direct and indirect financial contributions of each party. It acknowledged the relevance of an inheritance as a financial contribution, but also considered the subsequent use and impact of that inheritance on the relationship's assets. The Court also addressed the significance of capital gains and the timing of asset valuations, ultimately finding that the District Court's original assessment required adjustment.

The appeal was allowed in part. The District Court judgment for the plaintiff in the sum of $133,000 was set aside and replaced with a judgment for $112,403, effective from 24 March 2005. The District Court judgment was otherwise confirmed. The appellant was ordered to pay half the respondent's costs of the appeal, with liberty for either party to seek a variation of costs orders based on prior offers of compromise.