Can you mathematically calculate the weight of financial contributions in property settlement?

At the time a relationship breaks down, the parties’ entitlements are determined in accordance with the provisions of the Family Law Act 1975. Part of the discretionary exercise in determining property settlement entitlements includes a consideration of financial contributions made to the acquisition, conservation or improvement of property. 

Recently, a case proceeded to the Court of Appeal which involved a husband having made a contribution of property at the commencement of the relationship in 1995 having an imprecise but modest value of not more $110,000. At trial, the property had a value of $340,000 and the net value of the parties’ total property interests was $941,096. The primary Judge referred to the property having a current value of 36% of the value of the net property pool and weighted the husband’s contribution by 25%. 

The Court accepted the submission made on behalf of the wife that the Judge erred in failing to treat the contribution of the property as part of the “myriad of contributions” made throughout the relationship. 

In considering the Appeal, the Court reiterated principles set out in earlier cases as to the assessment of contributions, including the following:

“As part of the process of ultimately determining just and equitable orders under s79 there is included a complex of discretionary assessments and judgment of many components of contribution, only some of which are capable of measurement in monetary terms and then often only in historical, rather than present, money terms. Any dictate to the effect that in the course of assessment each disparate component part or kind of contribution must be assigned a discrete and identifiable value or percentage is antithetical to the nature of the discretion involved.” 

The case confirms that it is incorrect to mathematically calculate the percentage adjustment based upon the monetary value of a financial contribution. 

 1. Eaton & Eaton [2020] FamCA

2.  Lovine & Connor and Anor [2012] FamCAFA 168