VERDINCK & STEVENS

In the matter of Verdinck & Stevens, Rees J considered an application for an adjustment of property interests arising from a de facto relationship. The applicant sought an adjustment in her favour, citing her lower earning capacity and her role in caring for the parties' children. The court was required to determine the just and equitable distribution of the parties' net assets, considering their respective contributions and any alleged waste of assets by the respondent.

The court's reasoning focused on assessing the parties' contributions over two distinct phases of their de facto relationship, acknowledging that their financial affairs were conducted differently in each period. While the entirety of the current assets originated from the respondent's initial contribution, the court found it appropriate to consider contributions made in each phase separately. The court ultimately assessed the overall contributions as 70 per cent to the respondent and 30 per cent to the applicant. Furthermore, the court considered whether the respondent's conduct in prolonging the litigation constituted waste, applying the principles from *Kowaliw & Kowaliw* (1981) FLC 91-092. The court concluded that the threshold for waste was not satisfied, as it was not found that the respondent had acted recklessly, negligently, or wantonly with the matrimonial assets.

Consequently, the court ordered an adjustment in the applicant's favour of 10 per cent, resulting in her retaining 40 per cent of the net assets. This adjustment was primarily due to her lower earning capacity and her care for the children. The applicant was to retain the parties' former home, Property C, and receive a cash payment of $270,000 from the respondent within 28 days. The respondent was also to collect specific items from Property C within 21 days, and otherwise, each party was to retain property in their sole name and possession.