austlii:cth/FedCFamC1F/2025/782
General information, not legal advice.
FedCFamC1F
2025-11-12
Simpson J
Original judgment source is linked above.
Ascot Investments Pty Ltd & Harper & Harper (1981) 148 CLR 337
Benson & Drury [2020] FamCAFC 303
Bevan & Bevan [2013] FamCAFC 116
Britt & Britt [2017] FamCAFC 27; (2017) FLC 93-764
Caldwell & Caldwell [2025] FedCFamC1F 506
NCH & RCH [2004] FamCA 633
Connor & Levine [2012] FamCAFC 168
Dickons & Dickons [2012] FamCAFC 154
Giunta & Giunta (No 3) [2021] FamCA 272
Harris & Harris [1991] FamCA 124; (1991) FLC 92-254
Hickey & Hickey & Attorney-General for the Commonwealth of Australia (Intervener) [2003] FamCA 395; (2003) FLC 93-143
Kennon & Kennon [1997] FamCA 27; (1997) FLC 92-757
Kowaliw & Kowaliw [1981] FamCA 70; (1981) FLC 91-092
M & M [1998] FamCA 42
Martell & Martell [2023] FedCFamC1A 71
Norman & Norman [2010] FamCAFC 66
Norris v Brooks [2022] NSWSC 804
Omacini & Omacini [2005] FamCAFC 104; (2005) FLC 93-218
Pierce & Pierce [1998] FamCA 74; (1999) FLC 92-844
S & S [2003] FamCA 905
Shinohara & Shinohara [2025] FedCFamC1A 126
Stanford & Stanford [2012] FamCAFC 1; (2012) 247 CLR 108
Strahan & Strahan (Interim property orders) [2011] FamCAFC 126; (2011) FLC 93-466
Trevi & Trevi [2018] FamCAFC 173
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
(a) Payment of agent's commission, advertising expenses and legal expenses of the sale; and
(b) The net sale proceeds then be divided as follows:
(i) An amount to the husband ("the husband's amount"), to be calculated as follows:
The husband's amount = (net property pool x 55%) - $337,353.
(ii) An amount to the wife ("the wife's amount"), to be calculated as follows:
The wife's amount = (net property pool x 45%) - $406,460.
(a) List the property for sale at a sale price agreed between them in writing and failing agreement, at a price as recommended by the Real Estate Agent ("the listed sale price"); and
(b) Accept any offer received on the property within 10 per cent of the listed sale price, and in the event there are multiple offers made on the property, the parties will accept the highest offer made by a prospective buyer.
(a) Ensure the property is in good order and repair;
(b) Co-operate in all reasonable ways with requests by the Real Estate Agent and, or, prospective purchasers including but not limited to:
(i) Providing keys to obtain access;
(ii) Doing all things necessary to facilitate access to the property at all reasonable times and facilitating access for inspection without interference.
(c) Maintain the property in a presentable condition so as to facilitate the sale including but not limited to presenting the property in a neat and tidy condition at all times when the property is subject to inspection.
(d) Do all things necessary to facilitate the sale at a time in accordance with these orders and shall refrain from doing or saying anything which has the effect of hindering or preventing an inspection or a sale of the property being affected.
(e) Ensure that they are not present for any inspection of the property and do not speak to any potential purchasers directly or through an agent other than the appointed Real Estate Agent.
(f) Be restrained from making any intentional or deliberate attempt to devalue the property or sale price.
Note: The form of the order is subject to the entry in the Court's records.
Note: This copy of the Court's Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
IT IS NOTED that publication of this judgment by this Court under the pseudonym Acantha & Acantha has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
(a) Further Further Amended Initiating Application filed 5 February 2025;
(b) Her trial affidavit filed 14 April 2025;
(c) The affidavit of Mr G filed 14 April 2025; and
(d) Her Financial Statement filed 21 March 2025.
(a) Further Further Amended Response to Initiating Application filed 5 February 2025;
(b) His trial affidavit filed 14 April 2025;
(c) The affidavit of Ms F filed 14 April 2025; and
(d) His Financial Statement filed 1 April 2025.
(a) Issues informing the final balance sheet, including:
(i) The characterisation of the husband's interest in E Family Trust:
- (A) If it was to be regarded as property, as contended by the wife, what value should be attributed to that interest on the balance sheet; or
- (B) If it was to be treated as a financial resource, as contended by the husband, was that resource capable of quantification and if so, in what amount; and
- (C) In what manner, if at all, should that interest be taken into account between the parties.
(ii) Addbacks, as contended by each party (but relating to different amounts and circumstances).
(b) The overall property adjustment between the parties, including:
(i) The assessment of each party's contributions in accordance with s 79(4)(a)-(c) of the Act; and
(ii) The weight to be given to those differing contributions; and
(iii) The assessment of any adjustment thereafter, to either party, on account of the matters in s 79(4)(d)-(g) and including the matters in s 75(2), as applicable.
(a) The husband's interest in the Suburb C property being transferred to her;
(b) The wife retaining certain funds in a particular investment account (the Super Fund 1 Investment Account);
(c) The wife retaining other property in her possession and control and certain specified items of personalty;
(d) The husband retaining other property in his possession and control and certain specified items of personalty;
(e) The husband retaining his interest in E Family Trust; and
(f) Each party retaining their superannuation interests without adjustment.
(a) The transfer of his interest in the Suburb C property to the wife, upon her paying to him a sum of $2,052,125 (which amount was varied from $1,162,500 as found in his Further Further Amended Response, to reflect the balance sheet, as contended by him, at the time of the final hearing);
(b) The sale of the Suburb C property, if the wife was not able to pay such sum to the husband within 60 days of the orders being made;
(c) In the event of the sale of the Suburb C property, the husband would receive an amount from the net sale proceeds sufficient for him to retain 78 per cent of the net pool;
(d) $100,000 from the Super Fund 1 account to be put aside for the child's education and medical expenses (the husband no longer sought a division of the remaining funds from that account after the removal of the $100,000, as was previously sought in his Further Further Amended Response);
(e) The husband would retain his interest in "[D Pty Ltd]" (a business conducted by the husband as a sole trader) and indemnify the wife;
(f) That each party would retain certain nominated property and generally the property they each had in their possession or control; and
(g) The husband proposed that each party would keep their superannuation.
The court must not make an order under this section unless it is satisfied that, in all the circumstances, it is just and equitable to make the order.
(a) Identify and value the parties' property (including superannuation interests), liabilities and financial resources, at the time of the final hearing, and determine the legal and equitable interests of the parties in such property;
(b) Consider, identify, and assess the contributions by the parties within the meaning of s 79(4)(a)-(c) of the Act, and determine the contribution-based entitlements of the parties expressed as a percentage of the net value of the property of the parties;
(c) Identify and assess the other relevant factors, as outlined in s 79(d)-(g), including the matters set out at s 75(2) of the Act, and determine the adjustment, if any, to be made to the contribution-based entitlements of the parties; and
(d) Consider the effect of the findings arising from the above and resolve what orders are just and equitable in all of the circumstances of the case.
One-fourth share in N Pty Ltd ACN [...] atf E Family Trust ABN [...]
D Pty Ltd business expenses paid from joint account
Funds withdrawn from joint account at separation
Funds withdrawn from Super Fund 1 account on 4 February 2022 that were not for legals or X
Funds withdrawn from Super Fund 1 account on 22 February 2022 that were not for legals or X
Funds withdrawn from Super Fund 1 account on 4 April 2022 that were not for legals or X
Funds withdrawn from Super Fund 1 account on 4 November 2022 that were not for legals or X
Funds withdrawn from Super Fund 1 account on 9 December 2022 that were not for legals or X
Funds withdrawn from Super Fund 1 account on 4 February 2023 that were not for legals or X
Amount quarantined for X's school fees to be paid to Husband
Total Superannuation - not included as each keep their own
N Pty Ltd [...] atf E Family Trust ABN [...]
NET POOL - AFTER $198,166 FOR X'S EDUCATION HAS BEEN DEDUCTED
(a) The husband's paternal grandmother established P Trust Fund in 1976. In mid 1996, by way of further deed, that trust was converted, following the death of Ms P, to the E Family Trust Fund.
(b) The husband's father was the director and shareholder of N Pty Ltd, the trustee of the E Family Trust.
(c) Prior to the husband's father's death (in mid 2018), the E Family Trust was used as a means to distribute income to the family members of the husband's father (which included the husband and his siblings).
(d) Following the husband's father's death in mid 2018, the control of the E Family Trust passed to the husband and his siblings upon them acquiring shareholdings in N Pty Ltd. The husband, along with his surviving siblings, is one of four of the equal shareholders in N Pty Ltd and they are each directors of the company.
(e) N Pty Ltd remains the trustee of E Family Trust. There is no power of appointment in the Trust Deed.
(f) The Trust Deed (Exhibit 5) provides that the powers of the trustee include to make investments in its discretion (clause 5) and to sell and otherwise manage any property owned by the trust (clause 6), and in the life of the trust, the trustee may distribute the whole or part of the income generated by the trust to the benefit of named beneficiaries and family members of the named beneficiaries.
(g) The children of the husband's late father fall into that category (along with their spouses and children).
(h) The trustee holds unfettered discretion to distribute the income to the beneficiaries as it determines each year. However, if no determination is made by the trustee at the end of a particular financial year, the trustee shall distribute the income to the beneficiaries equally (or to their surviving child or children, as applicable).
(a) The assets of the E Family Trust could be determined as being worth $1,988,732.06; and
(b) That the husband, is a beneficiary of the trust; and
(c) The husband is a 25 per cent shareholder in, and a director of, the trustee, N Pty Ltd; and
(d) That, consequently, he had an interest in the assets of E Family Trust, which could be included in the balance sheet as being worth $497,183 (being 25 per cent of the total value of the investments as recorded in a portfolio statement).
(a) That the siblings (as trustees) had agreed that all distributions of income would be equal between them;
(b) That the court would be satisfied, consistent with that agreement, that the husband had received, along with his surviving siblings, equal distributions of income from the trust; and
(c) That any capital realised from the sale of assets of the trust would similarly be distributed equally between them.
Addbacks sought to be included in the balance sheet
(a) Where the parties have expended money on legal fees;
(b) Where there has been a premature distribution of matrimonial assets; and
(c) "Waste" or wanton, negligent, or reckless dissipation of assets - as characterised in Kowaliw & Kowaliw [1981] FamCA 70; (1981) FLC 91-092 ("Kowaliw") at 76,644.
[56] In summary, we consider that the above mentioned decisions of the Full Court establish that, while the treatment of funds used to pay legal costs remains ultimately a matter for the discretion of the trial judge, in determining how to exercise that discretion, regard should be had to the source of the funds.
[57] If the funds used existed at separation, and are such that both parties can be seen as having an interest in them (on account, for example, of contributions), then such funds should be added back as a notional asset of the party, who has had the benefit of them.
[58] If funds used to pay legal fees have been generated by a party post-separation from his or her own endeavours or received in his or her own right (for example, by way of gift or inheritance), they would generally not be added back as a notional asset; nor would any borrowing undertaken by a party post-separation to pay legal fees be taken into account as a liability in the calculation of the net property of the parties. Funds generated from assets or businesses to which the other party had made a significant contribution or has an actual legal entitlement may need to be looked at differently from other post-separation income or acquisitions.
(a) He had not agreed to the wife accessing the funds identified.
(b) The wife has not adequately explained how she used the funds.
(c) He does not accept that the funds were needed by the wife for her self-support or for the support of the child.
...
Following separation and to-date, [Mr Acantha] has continued to exert coercive control and intimidating behaviour towards me, as follows:
(a) On [...] 2022 [Mr Acantha] sent me a crime book for my birthday about a devoted mother of a young boy who was missing and believed to be buried in the back garden by the secretive and abusive husband. I was very disturbed by this gift.
(b) The most recent interim application filed by [Mr Acantha], seeking (amongst other things) to change [X's] primary residence on an interim basis, to cease [X's] time with me, and to place [X's] name on the Airport watchlist is designed to put pressure and to cause further stress to me (in addition to increasing my legal costs unnecessarily).
(c) [X] said to me on one occasion in 2024, unprompted and upon returning to me after spending time with [Mr Acantha], that [Mr Acantha] had expressed to him that he "must win" against me in Court at all costs, and to "destroy" me.
(a) In expressing his denials, the husband referred to being "often intoxicated" and that since attending AA meetings, "I have found that in many situations, I would have blackouts";
(b) He conceded that in circumstances where he was having blackouts, "the reality is you can't remember things that you've said?"; and
(c) The wife was not challenged about her evidence about these matters.
And this was in the context of you becoming so affected by alcohol that for the remainder of the weekend, for example, you would be unable to get up in the morning and assist in parenting [X]?‑‑‑Yes, correct.
(Transcript 13 May 2025, p.59, lines 41-43)
Do you acknowledge the impact that that behaviour had on my client?‑‑‑Yes, I do.
What do you say the impact was?‑‑‑Lasting.
Lasting. How?‑‑‑Because it's not the way that anybody should speak to anybody else.
It's not the way someone deserves to be treated?‑‑‑Correct.
Would have made her job as a parent that much harder, wouldn't it?‑‑‑Yes.
Would have made her job to pack the dishwasher, load the washing into the washing machine, put food on the table, that much harder, wouldn't it?‑‑‑Not necessarily.
What, when you're screaming at her, "Get a fucking job so we don't - so we have some money," that wouldn't have made her job harder?‑‑‑No, I don't think so.
(Transcript 13 May 2025, p.61, lines 17-31)
Put shortly, our view is that where there is a course of violent conduct by one party towards the other during the marriage which is demonstrated to have had a significant adverse impact upon that party's contributions to the marriage, or, put the other way, to have made his or her contributions significantly more arduous than they ought to have been, that is a fact which a trial judge is entitled to taken into account in assessing the parties' respective contributions within s 79.
Put shortly, our view is that where there is a course of violent conduct by one party towards the other during the marriage which is demonstrated to have had a significant adverse impact upon that party's contributions to the marriage, or, put the other way, to have made his or her contributions significantly more arduous than they ought to have been, that is a fact which a trial judge is entitled to take into account in assessing the parties' respective contributions within s 79.
- For the reasons given, the words "significantly" and "more arduous" are not to be read as coterminous with "exceptional". Rather, they arise from the basis of the principle itself which focuses on contributions. If the nature and extent of a person's contributions are made more difficult or harder so that they should be accorded greater weight, such that they should be taken into account in the determining of the outcome, they have therefore been "significantly impacted" or made "more arduous". The focus is not on the conduct per se, but on its effects on contributions.
- The threshold for recognition is therefore met by conduct which has a discernible effect on the contributions of the other party such that it should be recognised in determining the respective contributions of the parties.
- That, in my view, should be the focus and terms such as "exceptional" or "narrow", or indeed, "onerous" add an unnecessary and unacceptable gloss suggesting that a rare and high level of impact is required and that the violence or its impact must be exceptional. That is not however, what their Honours said. All that was required was a "significant adverse impact" upon a party's contributions. The word "significant" was used, in my opinion, as describing that the effect must be sufficient to warrant recognition but not imparting some artificial threshold. The effect of the conduct must be such that a greater weight should be given to the contributions.
- More recent cases have softened some of the harshness of the original application of the principles identified in Kennon. For example, it is now the position that the adverse effect of the violence on the contributions of a party can be inferred from the lay evidence of the parties and that there is no need to call evidence to "quantify" that effect (Maine & Maine [2016] FamCAFC 270; (2016) 56 Fam LR 500 at [47]-[52] ("Maine"); Britt & Britt [2017] FamCAFC 27; (2017) FLC 93-764 at [74]-[75]; Keating & Keating [2019] FamCAFC 46; (2019) FLC 93-894 at [27]-[43], [52]-[67]; Benson & Drury [2020] FamCAFC 303; (2020) FLC 93-998 ("Benson & Drury") at [47]-[50]).
- It seems to me that regarding Kennon claims as "special" or "exceptional" is apt to mislead. In reality, all the majority said in that case was that a person's contributions are to be assessed in the light of all of the circumstances and where those circumstances have the effect of making the contributions more difficult, onerous or arduous, that should be recognised in the assessment of contributions. That, of course, takes place in a holistic manner (Dickons v Dickons [2012] FamCAFC 154; (2012) 50 Fam LR 244; Jabour & Jabour [2019] FamCAFC 78; (2019) FLC 93-898).
...
In other words, the task of the Court is to identify the "more probable" inference, not one that is necessarily "obvious" or "very likely."
There are now a number of authorities where both the Federal Circuit Court of Australia and the Family Court of Australia has taken a practical approach when considering the impact of family violence upon a party's capacity to make contributions, in terms of s 79 of the Act.
...
- More recently, in Benson & Drury [2020] FamCAFC 303; (2020) FLC 93-998 ("Benson") at [18], the Full Court stated that, provided a trial judge undertakes appropriate forensic analysis, the trial judge may reasonably infer that family violence perpetrated by one party against the other may be such that the violence "had a discernible impact upon the contributions of the other party." In identifying that as the correct test, the Full Court, in the context of referring to a number of authorities, then stated:
We pause to note that although sometimes, in the context of the Kennon argument, words such as "adverse impact"; "more arduous" or "more onerous" are used, the guideline requires the conduct of one party to have had a significant adverse effect on the contributions of the other or to have had made that party's contributions significantly more arduous than they ought have been. The conduct has to have had a discernible impact upon the contributions of the other party (Kennon at 906).
(Emphasis in original)
- The Full Court, in Benson at [18], made it clear that the evidence of the nature of the violence perpetrated against the victim may be such that, even without expert evidence, a trial judge, undertaking appropriate forensic analysis, might nonetheless infer that the violence had a discernible impact on the victim, such that it made the victim's contributions "significantly more arduous"...
I certify that the preceding two hundred and ninety-two (292) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Simpson.
(2012) 50 Fam LR 244
(1994) 181 CLR 387
(2000) 49 NSWLR 262
(1981) 148 CLR 337
(2008) 238 CLR 366
(2012) 247 CLR 108
(2016) 56 Fam LR 500