Published 28 March 2019
Relationship Property — Farming — Property (Relationships) Act 1976, s 20D — Family Proceedings Act 1980 — Webb v Stenton (1983) 11 QBD 518 (CA) — M v B [2006] 3 NZLR 660 (CA) — Scott v Williams [2016] NZCA 356. This judgment relates to proceedings bought before the court to resolve outstanding issues between the parties in relation to the division of their relationship property. During the parties relationship they established and operated a successful farming partnership. There were 2 factual/legal issues that required determination by the Court: 1 — whether there should be a deduction for taxation from the value of the livestock; and 2 — how the issue of drawing of spousal maintenance was to be resolved and whether there was any consequent adjustment to either party from the partnership income to achieve fairness. The court found that any income tax liability arising on post resolution transfer of live stock from the respondent to a trust does not amount to existing debt. Therefore no deduction should be made from the value of the livestock. In regards to maintenance, the court found that the applicant has never received her half of the partnership profits. The respondent has a personal liability to pay spousal maintenance and it should not be classified as drawings. Judgment Date: 9 March 2017.
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