austlii:cth/FedCFamC1F/2025/653
General information, not legal advice.
FedCFamC1F
2025-09-19
Behrens J
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
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 Althuis & Paz has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
(1) Whether, notwithstanding the parties remain the joint owners of a property at Suburb D, New South Wales ("the [Suburb D] property"), the Initiating Application should be permanently stayed in circumstances where:
- Mr Paz contends that the parties have determined their property dispute by an agreement which has the effect of a court order in Country B;
- there are related Country B proceedings commenced by Mr Paz for the enforcement of that agreement and the sale and distribution of the proceeds of the Suburb D property; and
(2) Whether, as Ms Althuis seeks by way of the Response, Mr Paz should be restrained from pursuing the Country B proceedings.
(1) That the husband be restrained from taking any further steps in his two Country B proceedings in the Family Affair Division of the Judicial Court of City C (file number [...] and [...]); and
(2) That the husband take all necessary steps to discontinue his two Country B proceedings; and
(3) That the husband be restrained from commencing any further proceedings in any other jurisdiction with respect to the division of the parties' property arising from the breakdown of their marriage.
Those orders are what are broadly known as "anti-suit injunctions".
(1) The parties commenced cohabitation on or about September 2009 and were married in Country B in mid-2015. They migrated to Australia in late 2015 and their son, X, was born here in 2019. By early 2023, both parties and X had returned to live in Country B (Mr Paz says they returned in late 2022, Ms Althuis that she did not return on a final basis until early 2023).
(2) The parties separated on 22 December 2022. They were divorced in Country B by way of a Country B Divorce Certificate in mid-2023.
(3) Ms Althuis, Mr Paz and X all have dual Australian and Country B citizenship.
(4) Prior to their marriage, the parties entered into a pre-marital contract under Country B law ("the pre-marital contract"). Pursuant to this contract, they chose the Country B regime of separation of assets and agreed they would each keep their own assets. The pre-marital contract was not drafted as a Financial Agreement under Part VIIIB of the Act and was entered into under the Country B Civil Code. The pre-marital contract is certified by a Country B notary, who is a lawyer in private practice and who has a duty to advise both parties.
(5) After their separation, and in Country B, the parties signed a document described as a "[Country B] Divorce Agreement" (or, by the Single Expert, as the "[Country B] Divorce Convention") on 22 June 2023. That document was notarised by way of Country B law on 26 June 2023. Each party was in receipt of independent legal representation with respect to the Country B Divorce Agreement, as is required under Country B law for such an agreement to have effect. The Country B Divorce Agreement was signed after the expiration of the mandated period of reflection.
(6) By way of the Country B Divorce Agreement, as well as resolving parenting matters, the parties stated that:
Point 3.6 Liquidation of the matrimonial regime
The spouses are subject to the regime of separation of property.
There is no active or passive mass to divide.
The spouses have no claim against each other.
(7) The Country B Divorce Agreement did not include a declaration of assets identifying the parties' assets, nor their value.
(8) X lives in an equal time arrangement between his parents.
(9) At the time of entering into the Country B Divorce Agreement, the parties were and remain the joint registered owners of the Suburb D property, as joint tenants. The Suburb D property has been tenanted since it was purchased. The Suburb D property is security for a mortgage loan. The parties also have a Australian joint offset account, and another Australian joint bank account with a negligible balance.
(10) Mr Paz owns a majority of shares in a company registered in Australia - being J Pty Ltd. At the time the parties entered into the Country B Divorce Agreement, Ms Althuis was aware of Mr Paz's ownership of those shares and aware that she did not own any shares.
(11) There is no evidence about the value of the shares in J Pty Ltd at any time.
(12) The parties also have separate superannuation interests in Australia.
(13) There is no evidence about what other property Mr Paz owns - he has not been required to file a Financial Statement in these proceedings.
(14) By her Initiating Application, Ms Althuis seeks that the Suburb D property be transferred to her, and that she be paid a further cash sum as an adjustment to take account of the fact that Mr Paz would retain ownership of the shares in J Pty Ltd. It is an agreed position that Ms Althuis is not seeking simply to liquidate Suburb D. In her affidavit, she gives evidence that she seeks the parties each retain their property in Country B.
(15) In January 2025, Mr Paz commenced proceedings in City C in relation to the validity and effect of the Country B Divorce Agreement ("[Country B] proceedings 1"). By those proceedings he seeks a declaration as to the enforceability of the Country B Divorce Agreement and that there be "no new liquidation of the matrimonial property regime ... with respect to the sole Australian assets"
(16) In February 2025, Mr Paz commenced further proceedings in City C seeking orders as to the judicial division of "the remaining joint assets" - namely, for the sale of the Suburb D property, payment of debts and the equal division of the net proceeds ("[Country B] proceedings 2").
(17) The first listing date for Country B proceedings 1 is in September 2025. The first listing date for Country B proceedings 2 is in December 2025. Other than the Application and Response dealt with in these Reasons, the proceedings in Australia have not progressed beyond the filing of initiating and responding documents.
Following their divorce, if the ex-spouses still have property in joint ownership (not divided at the time of their divorce as legally permitted under [Country B] law), the Family affairs judge of the Judicial Court in [City C] can now make orders splitting the undivided property of [Ms Althuis] and [Mr Paz] located both in [Country B] and outside [Country B].
There is no limitation period. However, the Country B judge may not make orders adjusting the property - save that they can, by way of a "accounting wind up", take account of differential financial contributions to property which a party can prove. No account is taken of what might be found to be equitable interests in Australia. If financial contributions cannot be proven then, under the regime of separate property which the parties have adopted, jointly owned property will be divided equally between the parties.
(1) Country B proceedings 2 are in the nature of the proceedings referred to in the previous paragraph - namely, proceedings which involve splitting the property jointly owned between the parties. The Single Expert opines that, unless there is agreement reached, these proceedings may last at least one year and will likely involve the appointment of a notary to liquidate and divide the property remaining in joint ownership, wherever it is located in the world.
(2) Country B proceedings 1 have been commenced in the wrong court, and will likely be transferred to another court.
(3) The Country B Divorce Agreement is valid unless and until it is declared not to be. Ms Althuis could challenge the validity of the Country B Divorce Agreement either in the first Country B proceedings or in other Country B proceedings, but to date has not done so. It was conceded on Ms Althuis's behalf that her case in the Australian proceedings "is not that the [Country B] Divorce Agreement was invalid" (although it was not conceded that it was valid).
(1) Ms Althuis is estopped from pursuing the Australian proceedings;
(2) the Australian proceedings constitute an abuse of process;
(3) Australia is a "clearly inappropriate forum" for determining the parties' dispute.
to determine in the same manner and as if a Court Order, all of the rights and entitlement of the parties in respect of their property, including in both [Country B] and Australia - and in so doing, determined the wife's available claims both in respect of the property of the husband and also in respect of the parties' joint property, being the very subject matter of the claims now sought to be maintained by the wife in this Court.
It was submitted that she is estopped from so doing.
if any rights can be found to have been determined by the [Country B] Divorce Agreement (which is not admitted) they were not equivalent in nature to the parties' rights under the Act to seek the discretionary alteration of property interests conferred by s 79 of that Act, so no form of estoppel applies to preclude the Wife from making her s 79 claims
It was said that "the property rights exercised by the parties in their Country B Divorce Agreement were limited to continuing to hold and not divide any jointly owned property and waiving any claims with respect to those rights only." In particular, it was contended that there was:
no express provision about what was to happen to any individual parcel of matrimony-acquired property registered in their own name, jointly, or otherwise. There was no purported attempt by the parties to reference their Australian assets and finally adjust their interests in them.
The circumstances in which these proceedings are brought by the wife lead readily to a conclusion that they demonstrate an abuse of process:
as outlined, the wife joined consensually and with the benefit of legal advice in entry of the Divorce Convention which as a matter of law addressed and was required to address the entirety of the financial consequences of the parties' marriage and separation in respect of all of their property interests wherever situate - the wife's initial failure to acknowledge the existence of any such agreement simpliciter and then her attempt to recast the effect of such agreement cannot be accepted as a matter of law in light of the evidence of [Ms M];
... the wife now seeks in substance and effect to pursue the very relief that she elected not to pursue in entering into the Divorce Convention;
indeed, the maintenance of these proceedings in direct conflict with and in breach of the terms of the Divorce Convention;
without any explanation being proferred [sic], the wife has not sought to engage the jurisdiction and power available in [Country B] to seek to impugn the pre-marital contract and/or the Divorce Convention, both prior to entry of the Convention and subsequently;
[r]ather by these proceedings, the wife seeks to revisit in this jurisdiction the very issues that she by her own actions abandoned and precluded herself from pursuing in [Country B] - giving rise readily to a conclusion that the wife seeks to engage this jurisdiction in an exercise of 'forum shopping' and in any event in a manner which patently offends the overarching purposes set out in s.67 of the Federal Circuit and Family Court of Australia Act 2021; and
[T]he only effect of the proceedings sought to be maintained by the wife can be to result in orders being made by this Court which:
will not be recognised nor enforceable in [Country B];
will be found to be 'fraudulent' in the relevant sense in [Country B], the very commencement of the proceedings in and of itself bearing such same character; and
will give rise to a likely entitlement to damages in favour of the husband consequent upon such orders;
thereby seeking to maintain proceedings which can have not [sic] utility and only bring this Court into disrepute in the relevant sense; and
otherwise the maintenance of these proceedings has (and will continue) to result in significant and further costs to each party in both Australia and [Country B].
the twin policies of ensuring finality in litigation (thereby promoting respect for and efficient use of courts as well as avoiding inconsistent judgments) and of ensuring fairness to litigants (by sparing them the stress and expense of duplicative proceedings ...
This articulation, as well as the various descriptions of the requirements of the doctrines which refer to a previous "ruling", "earlier proceedings", "judgment" and "determination", invite the question of whether these forms of estoppel have a role where, as here, the parties have previously resolved a dispute between them but without recourse to litigation. It was the Single Expert's evidence that the Country B Divorce Agreement is "neither a 'notarized document' nor a judicial order (court decision)", although it has effect as an order of a court in the sense that it is enforceable.
The connections to jurisdiction and issues in dispute
The order and stage of the relevant proceedings
I certify that the preceding sixty-two (62) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Behrens.
(2020) 272 CLR 1
(1997) 189 CLR 345
(1981) 147 CLR 589
(2018) 265 CLR 77
(1996) 185 CLR 571