Quantifying the Homemaker Contribution in Family Property Law

Abstract

A central question in family property law in Australia is how to place a value on the homemaker contribution in comparison with other kinds of contribution. The problem is especially difficult where the property largely consists of assets owned before marriage, acquired by inheritance, or received after separation. This article explores the relevance of the homemaker contribution to property division both in marriages and de facto relationships, challenging the popular assumption that living together per se justifies significant wealth transfers. It is argued that parenthood provides the most important justification for property alteration, and that withdrawal from workforce participation due to the care of children or other family members is the primary concern in evaluating the homemaker contribution. The article then goes on to explore what the homemaker contribution meant when the Family Law Act 1975 (Cth) (‘the Family Law Act’) was enacted, and how that conceptual coherence has become lost over time. There are now two different approaches which have emerged to the quantification of the homemaker contribution in the context of pre-marital property, inheritances, damages awards and property acquired after separation. These approaches are irreconcilable. The approach which is now finding favour in the Full Court of the Family Court is one which makes it impossible for the Court to explain how it has reached its decision on the quantification of the parties' proportionate shares. Furthermore, it is founded on an interpretation of the homemaker contribution that Parliament never intended and has not since authorised. This raises important questions about the legitimacy of the Court's approach to property division under s 79 of the Family Law Act. The article concludes by offering a new interpretation of the role which the homemaker contribution should play in the division of property on relationship breakdown which is consistent with the overall framework of s 79. It involves two distinct considerations of the homemaker contribution. The first is to examine how homemaker contributions should be rewarded. The second is to consider how they should be compensated.