Now living at Sanctuary Cove on the Gold Coast in Queensland, Dianne Taylor is in the High Court alleging spouse Scott Vernon deliberately lied about his net worth when negotiating her relationship property entitlements.
Mr Vernon’s property interests, most notably an interest in Auckland’s Fairview Lifestyle Village, are claimed to total some $170 million.
Ms Taylor alleges her spouse is being deliberately obstructive, failing to properly disclose his net worth.
She was criticised by the High Court for accessing Mr Vernon’s personal emails seeking to identify the extent of his assets.
Justice O’Gorman ruled these emails could not be used as evidence at any court hearing; they were privileged communications between Mr Vernon and his lawyer regarding their dispute.
Offers made to settle their dispute similarly could not be used in evidence. They were part of ‘without prejudice’ discussions.
The High Court was told the two met in 2005, separating briefly in 2016 before reconciling, finally separating in 2022.
Six years into their relationship, the two agreed on terms should they later split. In a strictly legal sense, it was not a Property (Relationships) Act ‘contracting out’ agreement; rather an agreement setting out potential entitlements for Ms Taylor.
This 2011 agreement entitled Ms Taylor to a half million dollar lump sum payment plus $100,000 per year for the next five years, should they later separate.
No disclosure was made of Mr Vernon’s then net asset position, other than Mr Vernon admitting to owning a ‘small portion’ of the value of several retirement villages.
The agreement provided for a review in five years.
The High Court was told a failure to carry out this required review on due date led to tensions between the two and a temporary separation.
They reconciled after a new agreement was negotiated, including an immediate payment of AUD two million to Ms Taylor.
Evidence was given that their final separation was triggered by a failure to agree on terms for a subsequent review, a further five years later. Disclosure of Mr Vernon’s net worth was a key issue.
With their final separation, Ms Taylor claims the two prior agreements setting out her entitlements on separation are invalid; void and unenforceable because of what she alleges were fraudulent misrepresentations by her former spouse about his net worth.
She is claiming a share of the increased value in Mr Vernon’s net assets during the period of their relationship. She claims his assets increased by about $145 million during this time.
The exact figure is not known. Mr Vernon’s net worth is split across a multitude of entities, primarily a trust known as the Horizon Family Trust.
After a preliminary court hearing, Mr Vernon was ordered to make an interim payment of two million dollars, subject to Ms Taylor undertaking to make repayment, in full or in part, if she is found entitled to a lesser sum in later court proceedings.
Ms Taylor said this money is needed to pay her legal fees, plus living costs.
Mr Vernon questioned the need for an interim payment. Ms Taylor holds property interests in her own right totalling some AUD 4.8 million, he said.
Ms Taylor said she does not want to immediately sell any of these properties to free up cash as this would trigger a capital gains tax liability in Australia.
Taylor v. Vernon – High Court (29.08.24)
24.208