Ekrem & Ekrem [2024] FedCFamC2F 310

Ekrem & Ekrem [2024] FedCFamC2F 310

Relationship Details

• Type: Marriage
• Duration: Approximately 21 years, married in 2001, and separated on 17 March 2021.
• Ages at Judgment: Husband 53 years old, Wife 44 years old.

Children

• Children from Relationship: Two children, Ms Q (an adult and self-supporting) and X (aged 7, born in 2016).
• Special Needs: X is on the Autism spectrum and has global development delay.

Initial Financial Positions

• Husband:

  • Introduced several properties to the marriage, estimated to represent approximately 26% of the property pool.

• Wife:

  • Brought in a modest number of assets.
  • Both parties held loans against the Ekrem Family Trust and were owed money by the Ekrem Property Trust.

Contributions During the Relationship

• Financial Contributions:

  • Husband: Significant as he introduced several properties.
  • Additionally, purchased a property for the Wife during a separation in 2004/2005.

• Non-financial Contributions:

  • Wife: Primary carer for the children, especially for X with special needs.
  • Both contributed equally to maintaining properties and were recognized for non-financial efforts.

Post-Separation Contributions and Actions

• Primary Caregiver:
  • The Wife remained the primary caregiver for X, impacting her ability to work.

Current Financial Position & Property Pool

• Net Non-Superannuation Pool: $4,013,952.96

• Superannuation Pool: $343,593.00

• Husband's Income: Operating 'M Business' with a taxable income of approximately $103,000.

• Wife's Income: Reduced to $28,000 due to caregiving duties, expected income increase to $39,000 from property rentals plus government benefits.

Assessment of Contributions and Future Needs

• Contributions:

  • Assessed at 55% in the Husband’s favor, due to initial property contributions, resulting in assets valued at $2,207,674.13 to the Husband and $1,806,278.83 to the Wife—a differential of $401,395.30.

• Future Needs Adjustments:

  • Adjustment of 13% in favor of the Wife, considering income disparity and her role as primary caregiver for a child with special needs.
  • Final division of non-superannuation assets at 58/42 percent in favor of the Wife.

• Monetary Adjustment:

  • Wife entitled to a superannuation split of $29,903 and total net assets valued at $2,328,092.72; requiring a cash adjustment of $695,966.22 from the Husband, inclusive of debts owed from the Ekrem Property Trust.

Unique Aspects

• Significant dispute over real estate contributions initially made by the Husband.
• Assessments heavily influenced by the long-term caregiving burden shouldered by the Wife for their child X with special needs.
• Tax implications were considered, and the property division was structured to mitigate any adverse tax impacts.
• Emphasized a two-pool approach including superannuation to ensure equitable property distribution, taking into account future earning capacities and caregiving responsibilities.