Rowland & Rowland [2024] FedCFamC2F 7

Rowland & Rowland [2024] FedCFamC2F 7

Background Details

• Type: Marriage
• Duration: 11 years. Married in 2010 and separated on 24 April 2021. Cohabitation started in 2008, totalling 13 years of cohabitation.
• Ages at Judgment: Husband 50, Wife 41

Children

• Children from Relationship: Three children.
• The specific age of one child is provided: Z, born in 2015, currently eight years old.

Initial Financial Positions

• Husband:
  • 2017: Received a compensation payment of $36,000 placed in savings.
• Wife:
  • Owns business P Pty Ltd as a sole trader since 2009.

Contributions During the Relationship

• Financial Contributions:
  • Joint purchase of the Suburb C property in 2018 for $1.7 million.
  • Wife established and operated P Pty Ltd.
  • Husband became a shareholder of L Pty Ltd in 2015 and G Pty Ltd in 2016.
• Non-financial Contributions:
  • Equal homemaking and child-rearing duties acknowledged by both parties.

Post-Separation Contributions and Actions

• Financial Contributions:
  • Husband started a new business J Pty Ltd post-separation, later converted to D Pty Ltd.
  • Sold shares in L Pty Ltd for $450,000.
• Primary Caregiver Arrangements:
  • Children live primarily with the wife, spending significant time with the husband.

Current Financial Position & Property Pool

• Husband:
  • Income from D Pty Ltd: $3,000 per week.
  • Assets include shares in multiple Pty Ltd companies and G Trust.
  • Estimated value of 25% share in D Pty Ltd: $40,000.
• Wife:
  • Income: $180,000 per annum (possibly higher when tax considerations are included).
  • Retains interest in K Pty Ltd and the Rowland Family Trust.
  • Current value of Rowland Family Trust: $1,298,180.
• Property Pool:
  • Total net value: $2,669,567.
  • Suburb C property valued at $2,350,000.

Assessment of Contributions and Future Needs

• Contributions:
  • Both parties agreed to an equal split of contributions at 50%.
• Future Needs Adjustments:
  • Adjustment in favour of the wife by 5%, resulting in a 55% share due to responsibilities towards the children.
• Final Division: 55% to Wife and 45% to Husband.

Unique Aspects

• Business Dispute: Husband engaged in a business transition from L Pty Ltd to D Pty Ltd.
• Compensation for Missing Assets: Disputed valuation of jewellery and artwork; attributed to husband as $70,000.
• Tax Implications: Potential CGT liability considered but not crystallised.
• Addbacks: Extensive discussion on addbacks and treatment of sale proceeds from L Pty Ltd shares.

Main Takeaways

• The division of assets was complicated by business transitions and contentions surrounding the dissipation of assets.
• The determination of contributions and adjustments heavily relied on the future needs of the wife due to her responsibility for the children.
• The total property pool was assessed globally, considering both contributions and future needs adjustments, resulting in a 55% allocation to the wife and a corresponding 45% to the husband.