My Injury – My Contribution. Fact or Myth?

The Family Courts face a plethora of cases involving parties that have received a lump sum payment following diagnosis of a serious health condition or injury. The Court assesses each case on its individual facts and in the case of Falcken & Weule [2019] FamCAFC the Court of Appeal was asked to consider the decision made in relation to the contribution of a lump sum from an income protection insurer following the wife suffering a stroke.  The Court of Appeal upheld the Primary Judge’s determination that the wife receive an adjustment of 53% for her receipt of $235,152; involving a net property pool of $1.8 million. 

In considering the adjustment to the wife, the Court had regard to the insurance payment received by the wife was for being totally and permanently disabled. It was compensation for her not being in a position to receive income for what would otherwise have been the rest of her working life. However, the wife used the payment to support the family prior to separation and accordingly it was a significant contribution by her. The Court considered comparable cases and noted the permutations of assessment may be that the contribution was made by one party, by the parties equally, or by the parties jointly however with one party making a greater contribution. It is therefore relevant to consider the contribution against the myriad of other contributions made, which can include (for example) the joint decision to take out an insurance policy and the care provided to the family following the health condition/injury. 

Just as no two families are the same, no two cases are the same. It is therefore important that specialised advice is obtained in relation to each party’s property settlement entitlements; which will have regard to all contributions that have been made in the relationship (as well as those matters outlined in section 75(2) and 90SF(3) of the Family Law Act 1975).