Smith v Gould

The case of Smith v Gould involved a dispute between two de facto partners over the division of their property interests. The matter was heard in the Family Court of Australia. The plaintiff, Smith, sought an adjustment of property interests under Part IX of the Property Law Act 1958. The dispute primarily centred on the valuation of the divisible pool and the assessment of each party's contributions to the relationship, particularly in relation to the defendant's successful business.

The court was required to determine the appropriate time for valuation of the divisible pool and the basis for this valuation. This included the valuation of shares in the private company that owned a commercial art gallery, which was central to the defendant's business. The court also needed to assess the respective contributions of the plaintiff and the defendant to the relationship, including the plaintiff's contribution to the defendant's business during their partnership. This involved examining whether the plaintiff's special skills enhanced their contributions and the nature of the welfare contribution provided by the plaintiff.

The court concluded that the valuation of the divisible pool should occur at the time of the relationship's breakdown. It further determined that the market value of the shares should be assessed without considering transaction costs. The court also found that the plaintiff's contributions to the defendant's business were enhanced by their special skills, and the welfare contribution provided by the plaintiff was a significant factor in the assessment of contributions. The court ordered an adjustment of property interests to achieve a just and equitable outcome.

The final orders required the defendant to transfer certain assets to the plaintiff, taking into account the valuation of the divisible pool and the respective contributions of each party. The orders also included provisions for the ongoing management of the private company and the commercial art gallery.