Court overturns $300k relationship payout

The owner of a civil construction company has won an appeal against a Family Court order to pay his former partner $326,300.

That amount was based on 10 per cent of the $2,913,000 increase in the value of shares in his company over the course of their relationship, and 10 per cent of his separate savings, which was $350,000 when they separated.

The pair met in Christchurch in 2011 and separated three years later. The man was sole shareholder of a company that his aunt and uncle started in 1983.

He had been working in it from 16 or 17.

The first years of their relationship were tough for the company but it then experienced a rapid improvement in fortunes.

The woman argued that it had had the benefit of her financial knowledge and managerial ability, she had worked over and above normal working hours, lived in substandard accommodation, foregone career advancement training and contributed to the family to free her partner up to work on the business.

She also provided a $5000 loan and a personal guarantee for $51,000 to support the company’s financial position.

The judge said that it would normally be expected that the woman could establish a claim for an equal share in the growth of the value of the company and savings account over the relationship. But in this case she had not established sufficient contribution over and above the role for which she was paid.

The 10 per cent decided upon was based on the length of the relationship, her actions and the benefits she received. ‘‘There is no evidence of an uneven balance in the relationship in respect of domestic responsibilities.’’

But Justice Jan-Marie Doogue in the High Court allowed the man’s appeal against the $326,300 payment.

She said she was not satisfied the woman had met the threshold to establish her claim.