austlii:cth/FedCFamC1F/2025/443
General information, not legal advice.
FedCFamC1F
2025-07-01
Campton J
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
(a) Any response to the wife's costs application sealed on 11 June 2025 arising out of the determination made on 16 May 2025 and as to the wife's application for costs of the stay determined by way of the orders made on today's date; and
(b) Any affidavit material in support thereof.
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 Eccheli & Eccheli has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
THE COURT ORDERS THAT:
The husband's application to discharge Order 2 made on 12 April 2024 is dismissed.
It be declared that the value of the husband's obligation by way of spouse maintenance pursuant to Order 2 made on 12 April 2024 at 30 April 2025 is $285,540.
[EE Property]
Pending further order, on condition that the wife files and serves an undertaking as to damages, upon settlement of the sale of the property at [FF Street, Town S] in the state of New South Wales ("[EE Property]"), the husband, in his personal capacity and his capacity as sole Director of the Trustee company of [Q Pty Ltd], is to do all acts and provide all necessary instructions and directions to cause the proceeds of sale of the [EE Property], after the payment of:
(a) An amount to pay any mortgage or secured liability on the title of the property;
(b) Real estate agents' commission and fees incurred on the sale;
(c) Legal costs and disbursements incurred on the sale;
(d) Taxation and revenue imposts incurred on the disposal;
(e) Statutory outgoings adjusted on settlement; and
(f) Other payments to be made pursuant to the terms of the contract for sale or any lease agreement;
to be deposited into an interest-bearing account held by [Q Pty Ltd], the husband being restrained in his personal capacity and his capacity as the director of [Q Pty Ltd] from doing any act or thing to withdraw, encumber, apply or adversely affect the monies in such account, save with the agreement of the husband and wife in writing, and to do all such things as are necessary to ensure that the instructions creating the interest bearing account provides for each party to have view access to the account.
Within 72 hours of the making of these orders or within 24 hours of any such appointment or instructions given, whichever is the earlier, the husband shall do all things to disclose to the wife's solicitor in writing of the identity and contact details of the appointed agent and the solicitor or conveyancer instructed to act on the sale of the [EE Property], the wife to provide a copy of these orders to any agent, solicitor or conveyancer appointed or acting on the sale of the [EE Property].
Restraint on dealings/sale of real property
Pending further order, on condition that the wife file an undertaking as to damages, Order 5 of the orders dated 12 April 2024 be amended to the following effect:
(a) Other than in accordance with these orders, the husband and wife be, and hereby are, restrained from selling, further encumbering, transferring, or in any other way dealing with, or diluting their interests in, any real estate in the name of the husband or the wife's, the joint names of the parties, or in the name of any commercial entity or trust in which either party is a director or shareholder, without providing the other party less than 28 days' notice in writing of that party's intention to do so, and providing all relevant particulars and documents as to the intended dealing with full and frank disclosure at the same time as notice is being provided.
...
The [F Street Property] sale proceeds
On the settlement of the sale of the [F Street Property], the parties shall do all acts and things and sign all documents necessary to distribute the proceeds of sale in the following manner and priority:
(a) Payment of the agent's commission, marketing and advertising costs;
(b) Payment of the legal costs of sale to the conveyancer;
(c) Payment of any amount outstanding to any water authority, local council or strata in respect of the [F Street Property] not otherwise taken up as a credit in favour of the vendor;
(d) Payment to the wife's solicitor's trust account in the amount of $750,000 for litigation funding to the wife, such funds not to be applied for any other purpose save with the agreement of the husband in writing;
(e) Payment to the wife of $500,000 by way of partial property distribution; and
(f) Payment of the balance into a controlled monies account on behalf of the wife to be held by her solicitor pending further order or agreement in writing between the husband and the wife.
(As per the original)
(a) have capacity to pay the Respondent Wife maintenance absent any evidence of his capacity to do so; > > (b) That ordering the Appellant to make payments of maintenance to the Respondent Wife for outstanding [CC Bank] mortgage payments is unjust and unreasonable in circumstances the Court expects the Appellant to go into debt to meet payments of maintenance to the Respondent Wife; and > > (c) That ordering the Appellant to pay the wife the outstanding mortgage payments to the Wife is unreasonable and unjust in circumstances [CC Bank] have issued a demand for final payment of the entire outstanding loan facility against the parties.
...
Other than in accordance with these Orders and save in the ordinary course of business, the husband and wife be, and hereby are, restrained from selling, further encumbering, transferring, or in any other way dealing with or diluting their interests in any assets in the husband or wife's name, the joint names of the parties, or in the name of any commercial entity or trust in which either party is a director or shareholder, without providing the other party less than 28 days' notice in writing of that party's intention to do so.
(As per the original)
(a) A 51.07 per cent share of the [Town S Shopping Centre] purchased on 1 June 2017 for $33.5 million, valued at $44.1 million, and subject to a liability of $44.5 million. The wife identifies that in an affidavit filed by the husband on 2 December 2024, in his Financial Statement filed on 21 February 2024, and repeated in a letter from his solicitor dated 26 July 2024, he estimated this property to be valued, on an 'as is' basis between $41 and $50 million; > > (b) A 57.37 per cent share of the [JJ Property] acquired on 1 July 2020 for $1.6 million, valued at $22 million, and subject to a liability of $19 million; > > (c) A 70.43 per cent share of the [KK Property] acquired for $45.8 million in June 2022, currently valued at $27 million, and subject to a liability of $27.6 million; and > > (d) A 66.6 per cent share of the [LL Property] purchased on 1 August 2017 for $6.3 million, currently valued at $5.1 million, and subject to a liability of $5.3 million.
...
The wife is the sole legal owner of the [F Street Property]. It is presently being listed for sale. The husband contends that it will sell for $3 million. Notwithstanding that, by way of notations made on 4 April 2024, the wife initially agreed to the sale proceeds of the [F Street Property] being applied to reduce the mortgage on the [D Street Property], she changed her position in February 2025 and requested for the husband to agree to allow her to retain the proceeds of sale of the [F Street Property] for her expenses and for the support of their adult children. The husband did not agree. She now seeks a different regime as to the distribution of the proceeds of sale. The husband seeks that the net proceeds of sale of the [F Street Property] be applied to the mortgage over the [D Street Property].
The husband ceased paying the [D Street Property] mortgage and other payments for the property in January 2025. The wife became aware of the ceased payments on 4 March 2025.
It was agreed between the husband and the wife at the hearing on 8 May 2025 that the husband is in default of Order 2 made on 12 April 2024 as to spousal maintenance payable in respect of the [D Street Property] for the benefit of the wife:
(a) As to the mortgage payments in the sum of $285,540 as at 30 April 2025;
(b) As to council rates in the sum of $2,556 as at 8 May 2025 (to be now paid by orders made 8 May 2025 from the [H Street Property] sale proceeds); and
(c) As to strata and other outgoings in the sum of $24,312 as at 8 May 2025.
...
The current value of the mortgage instalments payable to [CC Bank] for the [D Street Property] are $46,215 per month and in default incurs additional payment of $25,000 per month. On 4 March 2025 the husband's request to [CC Bank] by way of hardship to extend the time to pay arrears was refused. The husband requested that the wife agree to sell the [D Street Property]. She refused.
A notice of default and final demand dated 6 May 2025 has been served on the husband claiming $6,261,505.62 is due and payable by [AA Pty Ltd], the husband, the wife, and [Ms N] to [CC Bank] by 16 May 2025 (Exhibit 6). It foreshadows enforcement action by way of legal proceedings to be taken against [AA Pty Ltd], the husband, the wife, and [Ms N] should the loan not be paid by 16 May 2025.
(As per the original)
Particulars Amount (AUD)
Sales Price 44,104,000
Deductions
Rental Guarantee (624,930)
Rental Incentive (416,620)
Leasing Fees Allowance (62,493)
Land Tax Outstanding (175,642)
Legal and Transaction Costs (Provision) (50,000)
Sales Proceeds after Deductions 42,774,315
Agents Commission (1%) (441,040)
Debt Settlement - NAB Facility (34,030,000)
Bank Interest - NAB (1,373,054)
(outstanding and forecasted interest to
June 2025)
Debt Settlement - [L Investment Firm] (3,684,313)
Net Proceeds After Loan Settlements 3,245,908
Intercompany Business Loans
Intercompany Loan - [AJ Pty Ltd] (1,834,341)
Intercompany Loan - [Q2 Pty Ltd] (2,010,887)
Net Proceeds After Debt and Loan (599,320)
(As per original).
- An analysis of this evidence raises questions that would be answered if the husband had complied with his disclosure obligations.
- It is unclear as to whether rental guarantees, rental incentives, and leasing allowance fees are incurred or are paid on settlement, or whether they are deductable values for accounting and taxation purposes.
- A sum of $3,245,908 from the sale proceeds is identified to be applied to intercompany loans. There is no evidence as to the immediate requirement to repay any intercompany loans, or as to the value of any loan account of the husband or related entities including the [Eccheli Family Trust] in either [AJ Pty Ltd] or [Q2 Pty Ltd] that may be an avenue to access those monies.
- The submissions of the wife as to the necessity for a variation of Order 5 made on 12 April 2024 and the further injunctive order sought have merit in the shadow of the husband's disclosure failures as identified earlier in these reasons, including the husband's failure to disclose the application of the proceeds of sale of real properties of significant value and the opaque financial relationship with [Ms V]. Compliance with his obligations of disclosure would shed light upon the terms of disposals of real property, whether they be in the ordinary course of business or otherwise, as to the use and application of the monies received, and an understanding as to the flow of significant funds to and from [Ms V].
- The husband's implicit contention is that he need not comply with the disclosure of documents and information if he considers the disposal of an asset to be in the ordinary course of business. Irrespective, that does not engage with the impact of his disclosure failures as recorded earlier in these reasons, including, his failure to comply with both substantive and procedural orders made to date. These matters establish a danger or risk of dissipation of, or dealing with, property to frustrate the final relief of the wife as to the adjustment of property.
- The wife has demonstrated a case to receive notice as to disposals of real property interests. The amended injunctive relief she seeks as to particularising a requirement for notice were not contended by the husband to be prejudicial to, or to impact adversely on, the operations of the [Q Group] or the [AA Family Trust]. The wife ought to have the opportunity to digest and evaluate proposed arrangements or transactions the husband proposes be undertaken. Broadly the wife would thereafter bear the onus to make application if necessary to prevent the arrangement or transaction proceeding or being implemented if she objects. The husband will have the capacity to make applications to vary any notice period as he is advised. The balance of convenience favours the amending of Order 5 made on 12 April 2024 broadly, with some variation, as sought by the wife.
- Having regard to the matters identified earlier in these reasons as to the absence of disclosure as to the value and application of significant real property sales, the wife has established a risk that, after payment of selling expenses and discharge of any mortgage, the proceeds of sale of [EE Property] will be dissipated, thereby frustrating her substantive claim. The husband did not adduce any evidence as to prejudice if the intercompany loans are not paid. The balance of convenience favours the wife. No submission was adduced as to why the corporate funds produced on sale ought to be deposited into an account of the wife. Orders will be made regulating the sale of the [EE Property] so that the mortgage is discharged, and other necessary disposal costs are paid, with the balance to be retained in a controlled monies account operated by the corporate trustee pending further order of the Court or agreement between the husband and the wife in writing. Either party has the capacity to apply to vary such order should they establish an evidentiary foundation to exercise discretion to do so. The order sought by the wife as to view only access of the controlled monies account and to receive disclosure of the identity of agents and solicitors acting on the sale are appropriate and will be made.
I certify that the preceding thirty-one (31) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Campton.
Edwards
Noble
(1971) 125 CLR 296
(1986) 160 CLR 220
(1936) 55 CLR 499
(1986) 161 CLR 681
(2008) 237 CLR 66
(2016) 331 ALR 550