Divorce stoush hits top court

Mark Clayton, shown left in a 2003 photo, is heading to the Supreme Court to hear his $28 million divorce wrangle. Photo / Andres Warner.

A multimillion-dollar divorce wrangle between a sawmill magnate and his former wife has made its way to the Supreme Court.

Mark Clayton has significant sawmilling interests in the central North Island and his business and other assets are owned by a series of companies and trusts.

He considers none of the trust assets are relationship property and that his former wife, Melanie Clayton, is entitled only to their $850,000 matrimonial home and $30,000.

Ms Clayton, however, believes she is entitled to half of the value of the business and trust assets.

Her valuer was of the view that if her approach was upheld, she could be due half of a property pool estimated at $28.83 million when the parties were in the Family Court.

The pair, who separated almost a decade ago after 17 years of marriage, have already been through the Family Court, High Court and Court of Appeal.

The Court of Appeal delivered its judgment in February and at the time Ms Clayton's lawyer, Lady Deborah Chambers QC, said it was a "significant win" for her client.

However, the case is now before the Supreme Court after applications for leave to appeal, filed by Mr Clayton, were granted.

The case has centred around trusts which controlled much of Mr Clayton's businesses and other interests.

The Vaughan Road Property Trust was created in 1999 while the pair were still together. Mr Clayton was the settlor and sole trustee.

It was argued at the Court of Appeal that the trust was largely a sham because of the amount of control Mr Clayton exercised. The court dismissed this argument.

Lady Chambers said Mr Clayton exercised all control over the trust, which made it his property.

However, lawyer Colin Carruthers QC, who appeared on behalf of Mr Clayton as a trustee of the Vaughan Road Property Trust, said the trusts should not be regarded as his property.