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Clayton v Barlow [2021] NZFC 6332

Published 27 January 2023

Reserved judgment — division of relationship property — Family Court proceedings — Trusts Act 2019, ss 126-140, 130, 133, 141 & Sch 1 — Property (Relationships) Act 1976, ss 15, 33(3)(m), 44 & 44C — Family Proceedings Act 1980, s 182 — Trustee Act 1956, s 64 (repealed) — Howard v Howard FC Blenheim FAM-2020-006-019 — Hiatt v Hiatt FC Nelson FAM-2018-042-344, 11 February 2021 — Green v Hing [2021] NZFC 4687 — Law Commission Review of the Law of Trusts: A Trusts Act for New Zealand (NZLC R130, 2013). The parties had previously been in a de facto relationship. The current proceedings were to determine various relationship property-related issues, including whether to sell the former family home, which was owned by a trust and was therefore not relationship property. An issue for the Court was whether it had jurisdiction under the Trusts Act to make orders relating to the former family home. The respondent sought for the home to be sold and for the proceeds to be divided equally between the parties. However the trust did not allow for this and the Act did not provide for such an order to be made contrary to the provisions of the trust. The Court commented that the situation highlighted the need for legal reform and made suggestions on how the parties could resolve the issue. However without jurisdiction, it was unable to make orders. The Court concluded by making the relationship property orders that it would have made, had it been able to, in case these orders could be of assistance to the parties in the future. Judgment Date: 29 October 2021 * * * Note: names have been changed to comply with legal requirements. * * *