The
High Court awarded $500,000 compensation to Anne-Marie Findlay recognising that
while there was no relationship property of any value when her marriage ended
in 2010 her prior contributions did provide a springboard for former spouse
Scott to pick up lucrative repair contracts after the Christchurch
earthquakes.
One perverse effect of
damage wrought by the series of earthquakes in Christchurch was to throw a
lifeline to builder Scott Findlay. The
Findlay family were on their backsides after the 2008 global financial
crisis. A speculative Linden Grove
project had failed. Bankruptcy
loomed. The family home was sold. Mr Findlay’s father provided financial
support to bail them out. Mrs Findlay
left their 17-year marriage in 2010. Financial
providence came in the form of destruction left in the trail of Christchurch’s earthquakes. The High Court was told of Mr Findlay’s business
drawings in the two years following being $921,000 and $717,500. An aggrieved Mrs Findlay complained she was
entitled to a share. Her former husband
was sympathetic, but not willing to fork out the nearly one million dollars she
wanted.
Justice Davidson ruled
there was no relationship property in existence at the time of separation. Half of nothing is nothing. Mrs Findlay had no grounds to dispute
business structures set up after separation which had the effect of removing
her from decision-making roles in her former husband’s business. The rump of their old business had been sold
into a new company at book value and a new family trust had been set up for the
benefit of their children, all to the exclusion of Mrs Findlay.
Justice Davidson ruled
she was entitled to compensation for the direct and indirect benefits she
provided her husband while he built up his skills as a builder and developed business
contacts to get ongoing work. Her work in
raising their family, using her banking experience to manage financial affairs
and encouragement for her husband to complete his trade licensing provided the
base for his later success. A
constructive trust existed in her favour.
Equity entitled her to a claim against the ongoing business enterprise
of her former husband. The court award
of $500,000 amounts to just over half the amount she claimed.
Findlay
v. Findlay – High Court (15.11.17)
18.001