Drug dealer's wife wins right to half of family home sale

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The wife of a convicted drug dealer has won a victory in court over the sale of a family home.

Mariana Hayward's home was seized after her husband Jene was convicted and sent to jail in 2011 for selling cocaine.

A High Court judge earlier said police had to pay Mrs Hayward only $52,000 from the sale of the Auckland house, which was bought in her husband's name. But Mrs Hayward appealed and the Court of Appeal this week ruled she was entitled to half the net equity of the "untainted" share of the house - expected to be slightly over $200,000.

When someone failed to prove their home's equity was derived totally from non-crime income, the police commissioner regarded it as "tainted".

Although nobody disputed Jene Hayward made some money selling cocaine, Mrs Hayward also directly contributed to the family home by paying part of the mortgage payments. She was also found to have no knowledge of her husband's criminal activities.

In a judgment issued yesterday, the Court of Appeal said the property was bought for $375,000 in 2007.

"In this particular case, the facts were very much in our favour, in that Mrs Hayward was an innocent wife, knowing nothing about her husband's criminal activity, which is unusual in this area of law," her lawyer Richard Gay said.

"The Court of Appeal rightly stated that her interests should be construed in terms of the Property Relationships Act, and given the 50 per cent share in the untainted equity of the home," he said.

"Sadly, the couple will lose their home but it will mean that from the sale proceeds Mrs Hayward receives something in excess of $200,000 rather than the $52,000."

Earlier, authorities alleged Mr Hayward made $404,293 from selling cocaine. But in the High Court, Justice Geoff Venning fixed the Crown's maximum recoverable amount at $382,259.

Mr Hayward was part of a high-profile cocaine ring centred on Auckland nightlife hot spot Ponsonby.

He has since been released from jail. The couple are still married.