district court logo

Bennett v Bennett [2019] NZFC 819

Published 22 June 2021

Division of relationship property — sole trader business — separate or relationship property — Property (Relationships) Act 1976, s 8, 9 & 10 — A v R [2007] 2 NZLR 399 — Boyd v Jackson FC Napier, FP04136301, 6 March 2003. This hearing was to determine to resolve outstanding relationship property issues between the two parties, who had been married for 28 years. The issues related to the incorporation of a business in 1999. The Judge had to decide if the shares issued and retained by the respondent and the balance of that company’s current accounts in the respondent’s name, are his separate property or relationship property. The definition of relationship property includes under s 8(1)(e) of the Property (Relationships) Act (the Act) “all property acquired by either spouse … after their marriage … or de facto relationship began.” The Judge determined the business was relationship property by 1999. Based on the application of the respondent's income and effort during the period of the relationship, the intermingling of the relationship assets, including the rental properties and other investments, the modest overall capital position and the use of all assets as part of the security and funding pool for other investments was enough to show the business was relationship property, not separate. The adjustment required to achieve equal division was $2,756.50 and the respondent was to pay the applicant within 28 days. the sum of $2,756.50. The respondent would retain the exclusive benefit of the current account balance as his separate property. 25% of the shares of the business were to vest in the applicant. Judgment Date: 25 February 2019.