Costly split: $28 million divorce case settles

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. Photo / Andrew Warner

A $28 million divorce wrangle, one of the biggest fights of its kind in New Zealand, has settled out-of-court.

The dispute was seen as having a widespread effect on how trusts are constructed, with a top lawyer earlier this year saying that the fight had redrawn the landscape for this area of law.

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 considered none of the trust assets are relationship property and that his ex-wife is entitled only to their $850,000 matrimonial home and $30,000.

Melanie Clayton, however, believed she was 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, Court of Appeal and Supreme Court.

When the Court of Appeal ruled on the case in February, Melanie Clayton's lawyer called it a "significant win" for her client.

Both sides were given leave to challenge parts of the decision to the Supreme Court, which heard the case in September.

It has yet to release a judgment but the former couple have, in the meantime, settled the dispute out-of-court.

"The parties to the long-running Clayton relationship property litigation, Mark and Melanie Clayton, have settled all matters between them, the settlement is confidential and neither party will be making any further statement to the media," a statement from Mark Clayton's solicitors said.