Stella & Stella

The case of Stella & Stella involved a dispute between the applicant wife, Ms Stella, and the respondent husband, Mr Stella, over the division of assets following their separation. The wife sought an equitable distribution of assets, including those inherited from the husband's grandmother, and argued for an adjustment in her favour based on increased contributions due to the husband's alcohol abuse and domestic violence. The court was tasked with determining whether it would be just and equitable to make any orders under s 79(2) of the Family Law Act 1975 (Cth), and if so, what those orders should entail. The court had to consider the parties' respective contributions to the relationship, the nature of the assets, and the principles outlined in Kennon & Kennon (1997) FLC 92-757.

The court found that the second pool of assets, which consisted of inheritances from the husband's grandmother, should remain unadjusted as it would not be just and equitable to alter the parties' interests in these assets. However, it determined that the first pool of assets could be adjusted. The court acknowledged the substantial financial contributions made by the husband, including inter vivos gifts and trust distributions, as well as the significant contributions made by the wife, particularly her role as a homemaker and parent. Despite finding that the wife's contributions were exacerbated by the husband's abusive behaviour, the court assessed the contributions at 40 per cent in favour of the wife and 60 per cent in favour of the husband. The court concluded that no further adjustment was warranted under s 79(4)(e) based on the s 75(2) factors, as such an adjustment would lead to "palm tree justice".

Ultimately, the court ordered that the husband pay the wife $1,825,730 within 90 days, with provisions for the sale of a property if the payment was not made. The court also outlined specific items and assets to be retained by each party, ensuring an equitable division that reflected their respective contributions and the unique circumstances of the case. The final orders were made to give effect to these reasons for judgment, with provisions for the listing of the property for sale, the distribution of proceeds from the sale, and the retention of specific personal items by the wife. The issue of costs was to be determined in subsequent submissions and a hearing.