ZHOU & WAI

In the matter of ZHOU & WAI, heard before Judge B Smith, the dispute concerned the division of property following a short marriage. A significant factor in the proceedings was the death of the parties' child shortly after birth. The primary contention between the parties related to the characterisation of substantial financial contributions made by each party's parents, with each alleging the funds were loans to them, while asserting the other party's parents had made gifts.

The court was required to determine the true nature of the financial contributions from the parties' parents, specifically whether these were loans or gifts. Further, the court needed to assess the non-financial contributions of each party, particularly in light of the deceased child, and consider any relevant factors under section 75(2) of the *Family Law Act 1975* (Cth) to make a just and equitable property adjustment.

Judge B Smith found that independent contemporaneous documentary evidence established that the funds provided by both parties' parents were gifts, not loans. The court deemed both parties, and the husband's mother, to be unreliable witnesses on the crucial issue of loans versus gifts. In the absence of reliable evidence from the parties or the husband's mother, and with no other witnesses, the court relied on objective evidence, particularly bank records, to resolve other issues. The court determined that the bearing of the child was the only established greater non-financial contribution. No adjustment was made for section 75(2) factors.

Consequently, the court ordered a property adjustment of 75% to the husband and 25% to the wife. Specific orders detailed the disbursement of funds held in various trust accounts, with the majority allocated to the husband. Each party was to retain personalty in their possession, be solely liable for their own debts, and be the sole beneficiary of their respective superannuation interests.