Wednesday, 2 December 2015

Property division 20 years after separation

In the recent case of Vega & Riggs the Court had cause to consider whether proceedings could be bought in relation to a property division some 20 years after the parties separated.

The parties were married in 1979, separated in 1990 and were divorced in November 1992. Any application for property division was therefore required to have been made by November 1993. No such application was made.

The husband commenced proceedings in 2015. The primary asset in dispute was a property the parties owned together.

Section 44 of the Family Law Act 1975 provides that the Court can grant leave for proceedings to be commenced out of time if it is satisfied that "hardship would be caused to a party … if leave were not granted".

The Court stated that two questions needed to be determined: 1) whether the Court is satisfied that hardship would be caused to the husband and 2) should the Court exercise its discretion to grant leave.

The Court stated that the test of hardship could be satisfied if the husband could establish a prima facie case that he has a claim of some significance to pursue and that he would be consequently worse off if leave was not granted for him to pursue that claim.

The Court heard that the husband had contributed to the purchase of the property, contributed his income during the marriage and had continued to pay for the mortgage and other outgoings since separation. The husband had lived in the property since separation. The husband, now 70, had significantly more constrained financial circumstances in 2015 than the wife.

The Court accepted that the husband had a prima facie claim and that he would be worse off if he could not pursue his claim.

In determining the second question of whether the Court should exercise its discretion the Court found that although there had been a delay of some 20 years the parties had in fact been in negotiations off and on during that period and that they had both participated in the delay.


The Court granted leave for the application to be made. 

2 comments:

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