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Ross v Hughes [2022] NZFC 69

Published 19 June 2023

Relationship property division — post-separation adjustments — unequal division — Property (Relationships) Act 1976, ss 13, 18B, 23, 25 & 26 — Martin v Martin [1979] 1 NZLR 97 — Bowden v Bowden [2017] NZFLR 56 — A v A FC Hamilton-2003-019-588, 29 March 2007 — Joseph v Johansen (1993) 10 FRNZ 302 — Holland v Dollard [2020] NZFC 2051 — R v R [1998] 17 FRNZ 75 — Bate Hallett v Nakielski (2000) 19 FRNZ 571. The parties appeared in Court to resolve the division of relationship property. Adjustments were made in favour of the applicant to balance the relationship property retained or unilaterally divided by the respondent. The value of the applicant's Kiwisaver was adjusted in the respondent's favour. Although both parties vacated the family home, the applicant had met the costs related to the property since separation. The Judge ordered the respondent to reimburse the applicant, and all further costs until the property is sold were to be met equally. For the relationship property to be shared unequally under s 13 of the Property (Relationships) Act, the applicant must establish that there are extraordinary circumstances present that would make equal sharing repugnant to justice. The Judge did not find this threshold to have been met. Instead, an application for an order under s 26 was made to settle the share of the respondent's relationship property for the benefit of the parties' children. Despite the Court's wide discretion, the Judge concluded that the respondent's sum of proceeds from the sale of the family home should not vest in the children. The respondent mother's lack of involvement with the children or Court proceedings led the Judge to direct that these funds should be divided between the children unless the mother uplifted her share of the nett proceeds of sale within one year of this decision. Costs of $8750 were awarded on a 2B basis in favour of the applicant, to be paid from the respondent's share of the sale proceeds of the family home. Judgment Date: 17 January 2022 * * * Note: names have been changed to comply with legal requirements. * * *