Relationship property claims against a spouse’s company are claims against the company’s value, not a direct claim against company assets, the High Court ruled when ordering relationship property claims registered by Kristen Darby against Glenorchy real estate be lifted.
Kristen claims an interest in estranged husband John Darby’s Glenorchy property development at the head of Lake Wakatipu. Mr Darby is a high-profile property developer with a history of completed projects across central Otago. She says her marital support during their relationship entitles her to a Property (Relationships) Act share in profits from the Glenorchy development. Lots at Glenorchy are currently offered for sale. Kristen lodged notices of claim against title to seven lots; two of them under contract. Notices have the practical effect of blocking any sale.
The High Court was told sales are being made in the name of a company: Pisidia Holdings Ltd. Ultimate owner of Psidia is a trust allegedly controlled by John Darby. Kristen complains she has been refused access to the trust deed for her estranged husband’s Karearea Trust.
Any relationship property claim Kristen may have to Glenorchy profits amounts to a claim against Mr Darby’s company, Associate judge Lester ruled. She has no direct claim against assets owned by Psidia. Her notices of claim against Psidia assets were ordered removed.
Pisidia Holdings Ltd v. Darby – High Court (30.05.19)
19.106