JOYCE v JOYCE, P J M & B J K v BOWEN [2014] NZHC 457 [20 March 2014]

JOYCE v JOYCE, P J M & B J K v BOWEN [2014] NZHC 457 [20 March 2014]

The $150,000 advanced by Ms Bowen remained her separate property as it was a loan sourced from her separate Tolhurst Street equity and, as at separation, was a debt owed by the Trust to her; interest on that loan is payable from the date the Trust sold Rosetta Road in 2005. The life insurance commission 'book' is...

Source-derived case information.

Citation
[2014] NZHC 457
Parties
First Appellant: Mr Joyce; Second Appellants: Mr Joyce, Mr P J M and Mr B J K as trustees of the Joyce Trust; Respondent: Ms Bowen
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 March 2014
Procedural Posture
Appeal Under Property (relationships) Act 1976 / High Court Hearing on Appeal From Family Court (judgment)
Outcome
Appeal dismissed in part; Family Court classifications and compensatory orders largely upheld with adjustments to reflect correct identification of relationship property in corporate assets and consequent limits on s 44C relief; further directions given for drafting orders and costs reserved
Legal Topics
Relationship Property, Classification of Assets, Trust Dispositions, S 44 C Compensation, S 182 Family Proceedings Act, Life Insurance Commission Book, Loans Between Parties, Bundle of Rights Doctrine
Family Law Property Law Trusts Law Equity Relationship Property Classification of Assets Trust Dispositions S 44 C Compensation +4 more

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Parties

Mr Joyce

First Appellant

Mr Joyce, Mr P J M and Mr B J K as trustees of the Joyce Trust

Second Appellants

Ms Bowen

Respondent

Procedural Posture

Appeal Under Property (relationships) Act 1976 / High Court Hearing on Appeal From Family Court (judgment)

Legal Issues

  1. 1 Whether $150,000 advanced by Ms Bowen is relationship or separate property
  2. 2 Whether life insurance commission book is relationship property and to what extent
  3. 3 Whether orders under s 44C and s 182 could be made to compensate Ms Bowen and in what amounts

Ratio Decidendi

The $150,000 advanced by Ms Bowen remained her separate property as it was a loan sourced from her separate Tolhurst Street equity and, as at separation, was a debt owed by the Trust to her; interest on that loan is payable from the date the Trust sold Rosetta Road in 2005. The life insurance commission 'book' is beneficially owned by FINANZ Ltd and CP Ltd and only $67,247 of the corporate group assets constituted relationship property to be equally divided between the spouses (each receiving approximately $33,623). The 'bundle of rights' doctrine did not apply to convert the Trust's or companies' remaining assets into Mr Joyce's property because there was no beneficial ownership nor...

Court Disposition

Appeal dismissed in part; Family Court classifications and compensatory orders largely upheld with adjustments to reflect correct identification of relationship property in corporate assets and consequent limits on s 44C relief; further directions given for drafting orders and costs reserved

Orders

  • Order that $67,247 representing relationship property in FINANZ Ltd/CP Ltd be divided equally between Mr Joyce and Ms Bowen such that each receives $33,623
  • Order under s 44C/related division that Ms Bowen receive $33,623 representing her share of the relationship property in the companies (limit of any s 44C order against Mr Joyce)