[2025] FedCFamC2F 1265
General information, not legal advice.
Federal Circuit and Family Court (Div 2)
2025-09-15
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
THE COURT ORDERS THAT UNTIL FURTHER ORDER THAT:
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 a pseudonym has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
(1) That the respondent husband pays periodic maintenance to the applicant wife in the sum of $1,300 per week commencing seven (7) days after the date of this order;
(2) That maintenance payable under this order shall be paid by way of fortnightly payments in the sum of $2,600 deposited by electronic funds transfer into the applicant wife's nominated bank account;
(3) That pursuant to section 114UB of the Family Law Act 1975 (Cth), the respondent husband pay to the applicant wife a "dollar-for-dollar" order whereby every dollar that the respondent husband pays his legal representatives, he pays the same amount to the trust account of the applicant wife's legal representatives; and
(4) That the respondent husband pays by way of electronic funds transfer to the trust account of the applicant wife's solicitors, an amount equal to the legal costs incurred by the respondent husband in respect of the matter including those costs, whether paid or unpaid, incurred prior to the commencement of proceedings, and up to, and including the date of this order.
(1) Affidavit of Ms Morley filed 7 April 2025;
(2) Affidavit of Ms Morley filed 13 August 2025; and
(3) (Amended) Financial Statement of Ms Morley filed 13 August 2025.
(1) (Amended) Initiating Application filed 1 August 2025;
(2) Affidavit of Mr Davers filed 1 August 2025; and
(3) Financial Statement filed 1 August 2025.
(1) Whether an order should be made granting the applicant wife periodic spousal maintenance, and if so, in what amount;
(2) Whether or not the order for spousal maintenance should be backdated to the date of filing of the application or in the alternative, the date when the applicant wife alleges that financial support was withdrawn by the respondent husband;
(3) Whether or not the Court should make an order for "dollar-for-dollar" litigation funding in favour of the applicant wife; and
(4) If a litigation funding order is made, whether such order should be backdated.
(1) A party to a marriage is liable to maintain the other party, to the extent that the first-mentioned party is reasonably able to do so, if, and only if, that other party is unable to support herself or himself adequately whether:
(a) by reason of having the care of a child of the marriage who has not attained the age of 18 years; or
(b) by reason of age or physical or mental incapacity for appropriate gainful employment; or
(c) for any other adequate reason;
having regard to any relevant matter referred to in subsection 75(2).
(Emphasis in original)
Matters to be taken into consideration in relation to spousal maintenance
...
(2) The matters to be so taken into account are:
(aa) the effect of family violence to which one party has subjected or exposed the other party, including on any of the matters mentioned elsewhere in this subsection; and
(a) the age and state of health of each of the parties; and
(b) the income, property and financial resources of each of the parties and the physical and mental capacity of each of them for appropriate gainful employment; and
(c) the extent to which either party has the care of a child of the marriage who has not attained the age of 18 years, including the need of either party to provide appropriate housing for such a child; and
(d) commitment of each of the parties that are necessary to enable the party to support:
(i) himself or herself; and
(ii) a child or another person that the party has a duty to maintain.
(e) the responsibilities of either party to support any other person; and
(f) subject to subsection (3), the eligibility of either party for a pension, allowance or benefit under:
(i) any law of the Commonwealth, of a State or Territory or of another country; or
(ii) any superannuation fund or scheme, whether the fund or scheme was established, or operated, within or outside Australia; and the rate of any such pension, allowance or benefit being paid to either party; and
(g) where the parties have separated or divorced, a standard of living that in all the circumstances is reasonable; and
(h) the extent to which the payment of maintenance to the party whose maintenance is under consideration would increase the earning capacity of that party by enabling that party to undertake a course of education or training or to establish himself or herself in a business or otherwise to obtain an adequate income; and
(ha) the effect of any proposed order on the ability of a creditor of a party to recover the creditor's debt, so far as that effect is relevant; and
(j) the extent to which the party whose maintenance is under consideration has contributed to the income, earning capacity, property and financial resources of the other party; and
(k) the duration of the marriage and the extent to which it has affected the earning capacity of the party whose maintenance is under consideration; and
(l) the need to protect a party who wishes to continue that party's role as a parent; and
(m) if either party is cohabiting with another person - the financial circumstances relating to the cohabitation; and
(n) the terms of any order made or proposed to be made under section 79 in relation to:
(i) the property of the parties; or
(ii) vested bankruptcy property in relation to a bankrupt party; and
(naa) the terms of any order or declaration made, or proposed to be made, under Part VIIIAB in relation to:
(i) a party to the marriage; or
(ii) a person who is a party to a de facto relationship with a party to the marriage; or
(iii) the property of a person covered by subparagraph (i) and of a person covered by subparagraph (ii), or of either of them; or
(iv) vested bankruptcy property in relation to a person covered by subparagraph (i) or (ii); and
(na) any child support under the Child Support (Assessment) Act 1989 that a party to the marriage has provided, is to provide, or might be liable to provide in the future, for a child of the marriage; and
(p) the terms of any financial agreement that is binding on the parties to the marriage; and
(q) the terms of any Part VIIIAB financial agreement that is binding on a party to the marriage; and
(r) any other fact or circumstance which, in the opinion of the court, the justice of the case requires to be taken into account.
"Adequately" imports relativity. Subsistence may be adequate for some applicants but not for others. It must be viewed in the light of para. (g) of sec. 75(2) "a standard of living that is in all the circumstances reasonable" ...
While in Wilson and Wilson [1989] FamCA 34; (1989) FLC 92-033, their Honours held at 77,453:
... A standard of living that in all the circumstances is reasonable for the party claiming maintenance is not necessarily the same standard as that enjoyed by the party who is ordered to pay maintenance. ... Similarly, the standard of living that in all the circumstances is reasonable for the wife in this case, is not necessarily the same standard as that enjoyed during cohabitation. ...
In Redman and Redman [1987] FamCA 2; (1987) FLC 91-805, the Full Court observed at 76,081:
... Another consequence is that on an application for interim maintenance the court conducts "not as final or exhaustive a hearing as would be the case if one were hearing the matter finally": Williamson and Williamson [1978] FamCA 57; (1978) FLC 190-505; (1978) 4 Fam. L.R. 355 at FLC p.77,650; Fam. L.R. p. 359 per Fogarty J. The evidence need not be so extensive and the findings not so precise. Having regard to those factors, and the general injunction of sec. 97(3), the court should in such matters have a greater degree of flexibility than it possesses in applications for maintenance which are intended 10 last for an indefinite period and can only be varied under sec. 83.
CONSIDERATION OF THE WIFE'S APPLICATION FOR SPOUSAL MAINTENANCE
(a) In 2008, the applicant wife became severely ill and was diagnosed with a medical condition. She alleges that at best she functions at 85% of her pre-illness capacity and continues to experience residual weakness and pain.[7]
(b) In 2009, the applicant wife was diagnosed with a pain condition caused by a serotonin reaction to a Selective Serotonin Reuptake Inhibitor (SSRI) prescribed for pain management. She alleges that she was hospitalised for two weeks for this condition and continues to suffer from ongoing pain flare-ups.[8]
(c) The matters referred to in paragraphs 88 and 89 of the applicant wife's affidavit filed 7 April 2025 are not disputed by the respondent husband in his responding affidavit filed 1 August 2025.
(d) The applicant wife deposes to being unable to drive a motor vehicle, or live independently during the period of 2019 to 2021, and that she retains a limited capacity to walk, stand steadily and has ongoing balance issues.[9] The respondent husband agrees with this.[10]
(e) In 2024, the applicant wife was diagnosed with a heart condition and has been referred for tests at a hospital.[11]
(f) The applicant wife complains that she continues to suffer from several ailments.[12] She estimates that her capacity to work is a maximum of 10 to 12 hours per week, provided that the work is paced at a rate she can cope with, and spread out over six days.
(g) The applicant wife is receiving various forms of treatment ranging from osteopathy, hydrotherapy, vitamin B12 injections, homoeopathy and counselling for pain management, together with medication and rest.
What are the applicant wife's reasonable weekly needs?
(a) Financial Year ending 2022 - $2,296;
(b) Financial Year ending 2023 - $20,414; and
(c) Financial Year ending 2024 - $21,858.[15]
(1) $520 per week (which will soon be paid to her) from the L Street property;
(2) $400 per week from the N Street, Town M property;
(3) $250 per week from the property at 1 D Street, Suburb E; and
(4) $320 per week from the property at 2 D Street, Suburb E.
(a) house repairs at $400 per week should be $100 per week;
(b) gas and electricity expenses should be halved per week;
(c) medical expenses should be reduced to $100 per week from $250;
(d) gardening and lawn mowing is $30 per week and not $80 per week;[16] and
(e) other necessary commitments should be $100 per week and not $250 per week.
What is the respondent husband's capacity to pay spousal maintenance?
Should there be an order for the payment of periodic spousal maintenance?
any violent, threatening or other behaviour by a person that coerces or controls a member of the person's family (the family member), or causes the family member to be fearful.
(Emphasis in original)
unreasonably withholding financial support needed to meet the reasonable living expenses of the family member
might constitute economic or financial abuse.
WIFE'S CLAIM FOR DOLLAR-FOR-DOLLAR LITIGATION FUNDING
CONSIDERATION OF THE WIFE'S APPLICATION FOR LITIGATION FUNDING
(3) In considering what costs order (if any) should be made, the court must have regard to the following:
(a) the financial circumstances of each party to the proceedings;
(b) whether any party to the proceedings is receiving assistance by way of legal aid in respect of the proceedings and, if so, the terms of the grant of the assistance to that party;
(c) the conduct of the parties to the proceedings in relation to the proceedings including, without limiting paragraphs (a) and (b) the conduct of the parties in relation to pleadings, particulars, discovery, inspection, directions to answer questions, admissions of facts, production of documents and similar matters, and in relation to their duty of disclosure under subsection 71B(1), 90RI(1) or 90YJA(1);
(d) whether the proceedings were necessitated by the failure of a party to the proceedings to comply with previous orders of the court;
(e) whether any party to the proceedings has been wholly unsuccessful in the proceedings;
(f) whether a party to the proceedings has made an offer in writing to the other party to the proceedings to settle the proceedings and the terms of any such offer;
(g) such other matters as the court considers relevant.
94. Finally, I would not have made an order for costs on a dollar for dollar basis as such costs would not be "certain and/or ascertainable" in accordance with the decision of the Full Court in Hogan & Hogan. In that case the Full Court held that the trial judge was in error in making an open ended order for the husband to pay the wife's costs. In so deciding the Full Court stated:
Whilst recognising that the court has unlimited discretion in relation to costs, in our view, the whole tenor of the legislative provisions and the history of costs orders whether interim or final requires them to be either certain and/or ascertainable and any order must be just.
95. In my view the time at which the costs must be certain and/or ascertainable is the time at which the order is made. To decide otherwise would prevent review of any such order requiring the costs to be paid. An order for the payment of costs on a dollar for dollar basis is necessarily not certain and can only be ascertained by the occurrence of subsequent events which, in this case, are the payment of legal costs by the husband.
[Footnotes omitted]
If his Honour's view is correct, no dollar for dollar order could ever be made. I respectfully disagree with his Honour's opinion. His Honour's reliance on Hogan & Hogan [1986] FamCA 34; (1986) FLC 91-704 does not have regard to the differences between the facts in that case and the facts that would normally lead to a discretion being exercised to make a dollar for dollar order. In Hogan the Full Court overturned the trial judge's order that the husband pay "the solicitor and own client costs and outlays of the wife's solicitors... (including counsel's fees) rendered by such from time to time to the wife". This was an order which gave the wife's lawyers an open cheque book, over which the husband had no control. It was argued unsuccessfully on appeal by the wife that the court would still retain some control when dealing with any application to enforce that order. Understandably the Full Court did not consider that an appropriate answer to the challenge to the order. A dollar for dollar order is fundamentally different. The financially advantaged party can choose and control what amount he or she spends on their own legal costs. It is not uncommon that, once a dollar for dollar order is made, the playing field is somewhat levelled by the financially advantaged party simply choosing to represent themselves so they don't have to fund their spouse's case against them.
In Vittorio & Oliphant [2017] FamCA 802 at [47] and [48] McClelland J refers to the views he expressed in Selena and goes on to emphasise the primary position set out in s 117(1) namely that "each party shall bear his or her own costs".
It is in my view, also important to recognise that the general rule in s 117(1) is prefaced by the words "Subject to subsection (2)". Justice Gill in Ryder & Bonham [2017] FamCA 979 made a dollar for dollar order and said:
97. Before allowing a departure from the general rule expressed in s 117(1) that each party bear their own costs, it is necessary to establish that there are, pursuant to s 117(2), circumstances that justify the departure. It is at that point that the discretion to make an order is enlivened. Until that point there is no power to make an order departing from the general rule.
98. Once enlivened, the discretion to make an order is governed by the requirement that the order, if made, be just, and that the determination as to whether any order should then be made, and the terms of that order, are governed by the considerations contained at s 117(2A).
Justice McClelland's view in Selena does acknowledge at paragraph [84] that the jurisprudence in this jurisdiction has allowed for "a litigation funding order" but without reference to cases which have made earlier statements in respect of dollar for dollar orders.
In Farnell and Farnell [1995] FamCA 140; (1996) FLC 92-681, Kay J said at 83,079:
In the Marriage of Gould, (Appeal EA 37 of 1994, judgment of 29 June 1994), the Full Court coram Fogarty, Kay and Graham JJ, overturned an order of the trial Judge wherein her Honour had ordered that pending trial, for every dollar that the husband had spent on his lawyers, he should provide the wife with a similar amount for costs. The trial Judge had ought [sic] to make that order to create what she saw as ''a level playing field''. The Full Court disallowed the orders on the basis that the wife had adequate finances to provide for her own costs by reason of a substantial recent inheritance. In the course of my reasons for judgment I said this:
"I wish to make comment on... the general philosophical views expressed by her Honour about endeavouring to achieve a level playing field by providing the wife with a dollar for dollar basis for costs. Whilst I agree with his Honour's [Fogarty J's] observations that this may not be an appropriate approach to these cases, I would also like to make reference to an article from the Chicago Daily Law Bulletin of 20 April 1992 which indicated that wives in these circumstances often have to spend much more than dollar for dollar to achieve a level playing field, particularly, and I quote - this is in reference to a survey of the American Bar Association Family Law Section:
'Most of the lawyers agree that women will face higher legal bills in a divorce. Accordingly to 91% of those surveyed women splitting from their husbands will have to pay more for discovery. Husbands traditionally have had full control over the family finances and economic information. This means the wife's attorney must often engage in discovery to gain equal knowledge about assets and income. The lawyer has an obligation to undertake discovery to find out if there are assets in just the husband's name, or if the wife has no knowledge of them.'"
- In Iphostrou & Iphostrou and Ors [2011] FamCA 20, Cronin J quoted with approval, a reported decision of O'Reilly J in G and T [2003] FamCA 1076; (2004) FLC 93-176. In that decision, her Honour referred to her previous unreported decision of McLean & McLean (unreported 30 January 2003) in which Her Honour said:
110. Section 117(2) provides that if the Court is of opinion that there are circumstances that justify it in doing so the Court may subject to subsection (2A) and the applicable Rules of Court make such order as to costs including by way of interlocutory order as the Court considers just. In my view, that provision provides sufficient power to make the "dollar for dollar" order subject to consideration of the matters in subsection (2A). That provision requires the Court to have regard to the financial circumstances of each of the parties to the proceedings, and certain other matters which are not relevant in this case.
In Selena McClelland J quotes Murphy J in Esdale & Schenk [2012] FamCA 111 where Murphy J with respect correctly observes that certainly since the Full Court's decision in Strahan it is usual for a financially disadvantaged party to rely upon s 79 as the power to obtain a lump sum interim property settlement order for the purposes of funding litigation. Justice Murphy comments that s 117, whilst a possible relevant power, is little used because of the need to satisfy the requirements of the section before obtaining an order.
As indicated, dollar for dollar orders are most usually made relying upon s 117 of the Act. I agree with McClelland J that, if that is the power relied upon, in order to make a dollar for dollar order, a positive finding needs to be made under s 117(2) after the court has regard to s 117(2A) considerations.
Justice McClelland in Selena at [86] and [87] was concerned that, when dealing with a costs application at an interim stage, the court was not in a position to address all of the matters set out in s 117(2A). In particular in that case, he commented that he did not believe that he was "...at this stage of the proceedings, in a position to make a determination in respect to the competing contentions by the parties regarding the appropriateness or otherwise of their conduct in relation to the proceedings".
In Poletti & Poletti [1990] FamCA 79; (1990) 15 Fam LR 794, the Full Court was satisfied that an interlocutory costs order could be made under s 117 when the only provision of s 117(2A) discussed was s 117 (2A)(a) (the financial circumstances of each of the parties to the proceedings).
The Full Court in Fitzgerald v Fish and Anor [2005] FamCA 158; (2005) 33 Fam LR 123 at [41] said:
...Nowhere in subs (2A) or elsewhere in s 117, is there any prescription that more than one factor must be present before an order for costs is made nor of comparative weight of the factors set out in subs (2A). As a consequence, there is nothing to prevent any factor being the sole foundation for an order for costs.
- In Ryder & Bonham Gill J made a dollar for dollar order notwithstanding he was unable to make any findings in respect to s 117(2A)(c)-(f) considerations. That is likely to be usually so, although in this case the husband raises an issue relating to the wife's conduct of the proceedings. Also it would be rare, if ever, that a party in a financial case would be in receipt of assistance by way of legal aid. That is so in this case.
- When making a dollar for dollar order under s 117(2), the focus will usually be in considering the disparity of the financial resources available to the respective parties, including their ability or lack of ability to meet their litigation expenses (s 117(2A)(a)) and the unusual features of the matter (s 117(2A)(g) of the Act).
- The making of a dollar for dollar order is a discretionary order that is usually made only as an order of last resort. Examples of circumstances which may attract the exercise of the discretion include:
- 46.1. Where:
- 46.1.1. The party who apparently controls significant financial purse strings pleads impecuniosity; and
- 46.1.2. The financially disadvantaged party cannot point to any particular fund or asset that might be available to help assist that party fund their litigation; but
- 46.1.3. The financially advantaged party seems to be able to fund their litigation through personal exertion income or structures that they directly or indirectly control (see for example, Zadenev & Zadenev [2014] FamCA 693 and Ryder & Bonham);
- 46.2. Where a financially advantaged party is a minority shareholder in a company and/or a discretionary beneficiary in a trust and directors or trustees seem more than willing to declare dividends or make distributions to fund litigation for the financially advantaged party against the disadvantaged party;
- 46.3. Where a financially advantaged party has relatives or associates who are prepared to fund the litigation against the financially disadvantaged party in circumstances where the financially disadvantaged party does not have the same support from third parties (Hurford & Hurford [2016] FamCA 328).
- Once the relevant matters in s 117(2A) have been considered, then the overriding question is whether or not there are circumstances that justify making a costs order which is just in the circumstances of a particular case. In my view the statements made by McClelland J at [94] and [95] of Selena place an unwarranted gloss upon the preamble to s 117(1) and the clear words of s 117(2) of the Act. I do not accept I am precluded from making a dollar for dollar order because its quantum would not be certain and only able to be ascertained on each occasion the husband pays monies to his lawyers or other professionals for their services in respect of the case.
I certify that the preceding one hundred and twelve (112) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Dickson.
[1] This sum was reduced from the amount originally sought by the wife in paragraph 1 of her Response to Initiating Application filed 7 April 2025, which sought the sum of $1,950 per week.
[2] Family Law Act 1975 (Cth) s 74.
[3] Family Law Act 1975 (Cth) s 75(1).
[4] See also the decision of Brown & Brown [2007] FamCA 151; [2007] FLC 93-316, [161].
[5] Mitchell & Mitchell [1995] FamCA 32; (1995) FLC 92-601, [81,995].
[6] Redman & Redman [1987] FamCA 2; (1987) FLC 91-805, [76,081].
[7] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 88.
[8] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 89.
[9] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 94.
[10] See the Affidavit of Mr Davers filed 1 August 2025 at paragraph 89.
[11] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 90.
[12] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 97.
[13] Counsel for the husband did not address the Court on this alternate proposal at hearing.
[14] Chapman & Chapman [1979] FamCA 14; (1979) FLC 90-671.
[15] See the Affidavit of Ms Morley filed 7 April 2025 at paragraph 105.
[18] Wilson & Wilson [1989] FamCA 34.
[19] Zschokke & Zschokke [1996] FamCA 79; (1996) FLC 92-693; Strahan & Strahan (Interim Property Orders) [2011] FamCAFC 126; (2011) FLC 93-466.
[20] Brown & Brown [2007] FamCA 151; [2007] FLC 93-316; Garston & Yeo (No 2) [2019] Fam CAFC 139.
[21] Strahan & Strahan (Interim Property Orders) [2011] FamCAFC 126; (2011) FLC 93-466; Paris King Investments Pty Ltd & Rayhill [2006] NSWSC 578.
[22] Atkins & Hunt & Ors [2018] FamCA 14, [71].
(1990) 15 Fam LR 794
(2005) 33 Fam LR 123