austlii:cth/FedCFamC1F/2025/658
General information, not legal advice.
FedCFamC1F
2025-09-19
Hartnett J
Original judgment source is linked above.
(1) her contravention application filed 27 November 2024;
(2) her affidavit of evidence filed 27 November 2024;
(3) written submissions filed 8 September 2025; together with
(4) oral submissions made 11 September 2025.
(1) his affidavits of evidence filed 25 November 2024 and 11 September 2025; together with
(2) the husband's oral submissions made 11 September 2025.
This is to certify that [Mr Fowles] attended for a consultation on 17/06/2025 regarding a medical condition. I note [Mr Fowles] is highly stressed regarding a court hearing on 04/07/2025 and is planning to attend for a follow-up consultation on 03/07/2025, regarding his fitness to attend the court hearing.
(As per the original)
This is to certify that [Mr Fowles] had a telehealth consultation with me on 02/07/2025 because of his recent hospital admission with pneumonia and grieving due to the sudden death of his friend overseas.
I concluded by reason of the above [he] was unable to attend court hearing on 04/07/2025.
(As per the original)
I observe that the husband had, between 28 March 2025 and 8 July 2025, filed approximately 17 Applications in a Proceeding, he asserting they were relevant to the contravention application.
None of the premises upon which the husband intends to challenge the validity of Order 1 made on 16 July 2025 evinces any reasonable prospect of success and so, by definition, the intended appeal is vexatious (s 102Q(1)). The application for leave to appeal must therefore be dismissed (s 102QAF(2)).
The husband's complaint of a denial of procedural fairness in the context of the existence of the s 102NA order
The husband was in the witness box for a total of 53 hours over a period of 22 days. The husband was a problematic witness. A great deal of Court time was wasted because the husband was non-responsive and disruptive. The husband gave evidence with an apparent intention to confuse and add complexity. He is an unreliable witness.
In November 2012 [W Pty Ltd] was acquired by [SS Company], an investment company established for the husband by his father. The husband is the sole director and shareholder of [SS Company]. The husband is also the sole director and shareholder of [L Pty Ltd] a service company for [W Pty Ltd]. [W Pty Ltd] is owned by [SS Company] which is owned by the [Fowles Family Trust].
The husband asserts that the interim orders were made by Hartnett J in the absence of evidence as to his finances. The husband claims he had given instructions for and had prepared an affidavit about his finances which his previous lawyer failed to file. The husband in his affidavit of 16 February 2018 states that he was then financially unable to maintain the level of support which the interim orders of Hartnett J required of him. Notably, the husband proceeded to spend in excess of $2.7 million on legal fees in these proceedings, the overwhelming proportion of which were applied after Hartnett J's maintenance order. This was the first of many instances of the husband claiming not to be able to afford an expenditure for the direct or indirect benefit of the wife but then accessing funds or resources for his own direct or indirect benefit, frequently from undisclosed sources.
The husband alleges that [Mr G Fowles]'s advance of the whole of the purchase price of the [X Street] Apartment was made by way of an interest-bearing loan. By way of context, in 2000 [W Pty Ltd] and [T Inc] were in the sole ownership of the husband as was [L Pty Ltd]. In 2000 the husband's father gifted him [SS Company] Inc, its subsidiary companies [EC1 Company] and [EC2 Company] and [BK Inc] and the husband became sole director and shareholder of [SS Company]. In July 2000 the husband's father transferred his balance of shares in [T Inc] to the husband. The husband deposes that "my father effectively gifted me the balance of the shares and I became a 100% shareholder". At [9.4.4] of the husband's 9 February 2018 affidavit he deposes that "in 2000 [T Inc] and [W Pty Ltd] were prospering and had assets of around US$1 million in the bank."
On [late] 2001 the husband applied for a loan of $500,000 from Westpac for 'personal investment purposes'. A mortgage was taken by Westpac and registered on 6 March 2002. The wife deposes that she was not aware the husband had secured a mortgage over the property until a title search was conducted, and a subpoena was issued to Westpac following separation. Furthermore, the husband had not disclosed the alleged loan from his father to Westpac at the time of applying for the loan.
The parties do not agree on the value of the husband's interest in the [Fowles Family Trust]. The husband contends that his interest in the [Fowles Family Trust] is nil. The husband maintains he has no beneficial interest in the corpus of the trust and cannot without the say of the Distribution Committee, namely his sister, make distributions from the trust in favour of any person. The wife contends that the husband's interest in the [Fowles Family Trust] is not known. The wife submits, correctly in my view, that based on the husband's evidence and non-disclosure a precise value of the trust assets cannot be inferred...
I find that the [Fowles Family Trust] is the puppet of the husband. Neither his sister nor the trustee exercise any control over the Trust or the assets of the Trust. I cannot attribute a value to the Trust because of the husband's non-disclosure. From the manner in which the husband has conducted these proceedings, so as to deflect any meaningful assessment of the Trust assets, I infer that the Trust assets are substantial.
The wife contends that the court should find that there is a moral obligation or mutual understanding between members of the [Fowles] family that the portion of assets of the [2017 DD Trust] which is attributable to the 1960 Trust, is an entitlement of the husband. Various values are attributed to the husband's interest in the [2017 DD Trust] from an entitlement to cash and assets of "at least $1,175,909" to a financial resource of $12,880,954. I am satisfied that the husband exercises control over the [2017 DD Trust] and I do not accept [Mr Y]'s evidence to the contrary. I have no idea about what is in the [2017 DD Trust] I cannot infer a value to the husband of or with respect to the [2017 DD Trust]. However, I am satisfied that it, along with is antecedents, the [Fowles Family Trust], the 1960 Family Trust and the [2003 DD Trust], are all entities in respect of which the husband has deliberately failed to make disclosure in the sense of In the Marriage of Weir [1992] FamCA 74; (1993) FLC 92-339 and successive cases to which will come later.
Much can be said (and has been said in the parties' outline of argument and final submissions respectively) about the husband's contention that prospective income tax liabilities should be taken into account as between himself and the wife. The husband fails to make out a case in this regard in his lack of disclosure about his financial affairs. The husband bears the onus of satisfying the court that each of the claimed liabilities exist, that regard has been had to any available offsets and that payment of the liability will actually occur. By depriving the wife and the court of a comprehensive picture of his financial circumstances, the husband precluded himself from being able to satisfy the court that the liabilities are real and imminent. Relevant acts and omission of the husband included instructing [Mr HH] not to file his personal 2020 Australian taxation returns and the 2019 and 2020 Australian tax returns for [L Pty Ltd] and [W Pty Ltd] and failing to call [Mr NN] to give evidence.
I am satisfied that the husband has failed in his duty of full and frank disclosure to the wife and to the court. A great deal of time and money was wasted by virtue of his intentional concealment and obfuscation.
I am satisfied that the husband has an income earning capacity considerably in excess of that of the wife. He has not disclosed its source or its dimensions, but I find that over these very lengthy proceedings the husband has been unable to disguise that he has the wherewithal to obtain funds when it suits him. [Mr DD]' evidence, in January 2017, was to the effect that the records of [T Inc] showed that the husband had drawn over $600,000 to meet "his commitments which includes his commitments to [Ms Fowles]." In June 2018 [Mr DD] reported that between 1 January 2018 and 22 June 2018 "the Husband borrowed from [L Pty Ltd] an amount totalling $459,156 USD paid towards his legal fees". However, there is no transparency to the arrangement (if there be any arrangement at all) no schedule of repayments or parent accountability. These statements by [Mr DD] are as uninformative as his later table of the husband's liabilities without a table of his assets and financial resources.
For reasons that I have already stated, I have found that the husband has failed in his duty to make full and frank disclosure of his financial circumstances. It is apparent that he has access to funds when it suits him to have access to funds. Examples are his legal costs of $2.7 million, the costs he paid for the Supreme Court proceeding and for BTC's participation none of which can be sourced or was explained by any transparent, accountable or verifiable evidence. Throughout the proceedings the husband has continued to draw large sums of money.
This case was made infinitely more complicated than it needed to be by the husband's resolute financial non-disclosure.
As these reasons amply demonstrate, [13] is entirely accurate.
...
Further, we are comfortably satisfied that the conclusionary finding at [383] was satisfactorily explained when regard is had to the reasons as a whole and in particular to [52], [153], [156], [249], [281], [306], [340], [375], [380], [435], [477], [511].
The Respondent, without reasonable excuse, failed to pay the Applicant the sum of $1,240,231 by 5 November 2023.
Order alleged to have been contravened ...
Order 3 of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 6 November 2023. No location applicable.
The Respondent, without reasonable excuse, failed to pay the Applicant the sum of $1,240,231 by 13 July 2024 following the dismissal of the Respondent's Appeal and the lifting of the stay of Order 3 of the final orders of Justice Bennett dated 6 October 2023, on 12 July 2024.
Order alleged to have been contravened ...
Order 3 of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 13 July 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to pay the loan secured by the property situate at [X Street], Melbourne, Victoria ([X Street] Apartment) and known as Volume [...] Folio [...] and otherwise cause the discharge of the mortgage [...] registered to the Westpac Banking Corporation by 4 January 2024.
Order alleged to have been contravened ...
Order 1(a) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
- 12.01 m on 5 January 2024. No location applicable.
(a) repay any loan secured by the property situate at [X Street], Melbourne, Victoria and known as Volume [...] Folio [...] ("[X Street] Apartment'; and otherwise cause the discharge of the mortgage numbered [...] registered to the Westpac Banking Corporation ("the mortgage")...
The Respondent, without reasonable excuse, has failed to pay to the Applicant all amounts due by way of outstanding spousal maintenance due pursuant to paragraph 2 of the Order made on 5 October 2015 or paragraph 6 of the Order made on 5 July 2018 by 4 January 2024.
Order alleged to have been contravened ...
Order 4 of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
- 12.01 m on 5 January 2024. No location applicable.
Within 90 days the husband pay to the wife all amounts due by way of outstanding spousal maintenance due pursuant to paragraph 2 of the Order made on 5 October 2015 ("the 2015 Order") or paragraph 6 of the Order made on 5 July 2018 ("the 2018 Order").
Until further order, the husband is to pay to the wife for her ongoing maintenance, the sum of $800 per week, by electronic transfer into the wife's maintenance account and further pay all the wife's medical, hospital, dental and/or pharmaceutical and/or treatment costs and expenses to the extent not covered by health insurance.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of November 2023.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 November 2023. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of December 2023.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 December 2023. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of January 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 January 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of February 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 February 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of March 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 March 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of April 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 April 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of May 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 May 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of June 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 June 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of July 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 July 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of August 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 August 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of September 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01 am on 12 September 2024. No location applicable.
The Respondent, without reasonable excuse, has failed to make payment of $2,200 in spousal maintenance to the Applicant pending full compliance of all of his obligations under the final orders of Justice Bennett dated 6 October 2023, for the month of October 2024.
Order alleged to have been contravened ...
Order 6(b) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 12 October 2024. No location applicable.
(b) paragraph 6 of the 2018 Order continue in full force and effect...
6. The husband pay to the wife:
- the sum of $2,200 per calendar month (in advance) commencing on 11 July 2018 such monies to be deposited in the bank account of the wife styled as the Commonwealth Bank Smart Access account BSB [...] Acc. No [...] and each party be at liberty to argue for the characterisation of such payments at the final hearing as either spousal maintenance or periodic child support or arrears of either of those...
(1) The husband had paid $985,274 to AK Law Firm and GC Lawyers since the date of the final orders (I observe that to be in the period between 6 October 2023 and 11 November 2024 when the wife affirmed her affidavit of evidence).
(2) The above legal fees did not include other legal expenditure incurred by the husband (and/or entities under his control which include W Pty Ltd; T Inc.; and L Pty Ltd) with AN Law Firm and with J lawyers, who had the carriage of the Federal Court of Australia proceeding before AN Law Firm were instructed, in respect of:
(i) his Application for Special Leave to appeal the orders of the Full Court;
(ii) the foreclosure proceedings issued by Westpac in the Supreme Court of Victoria;
(iii) the Federal Court of Australia proceedings [...] (being conducted in the husband's name together with W Pty Ltd and T Inc).
... [the husband] has no basis to continue prioritising the payment of his legal fees, or indeed any other expense, above his obligations under the Final Orders. We therefore put your client on notice that should he instruct you to disburse those funds transferred to your firm's trust account in any way other than to meet his outstanding obligations to our client under the Final Orders, including in payment of any costs or disbursements incurred with your firm, our client may bring a contravention or contempt of court application against him.
It was the wife's evidence that it is apparent from the disclosure of GC Lawyers trust account on 11 October 2024, that those funds were applied to the husband's legal fees and disbursements.
The Respondent, without reasonable excuse, has failed to pay to the Applicant the sum of $6,250 by 5 November 2023.
Order alleged to have been contravened ...
Order 10 of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 6 November 2023. No location applicable.
By way of costs and reimbursement of expenses:
(a) The husband be liable for and pay the wife $40,000 on account of her costs of his recusal application;
(b) The wife be liable for and pay the husband $20,000 on account of his costs of her application to tender documents;
(c) The wife pay the husband $13,750 by way of reimbursement of valuation expenses - such payments to be effected by the husband paying to the wife the sum of $6,250 in 30 days with the effect that the liabilities referred to in (a), (b) and (c) of this Order are not recoverable independently of one another.
The Respondent, without reasonable excuse, has failed to make payment of the default interest due to the Applicant.
Order alleged to have been contravened ...
Order 5 of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 6 December 2023. No location applicable.
(1) Default interest on the payment of $1,240,231 owing to the wife in accordance with Order 3;
(2) Default interest on the spousal maintenance arrears owing to the wife in accordance with Order 4;
(3) Default interest on the costs order of $6,250 owing to the wife in accordance with Order 10; and
(4) Default interest on the ongoing spousal maintenance due under Order 6(b), commencing on 11 November 2023 and accruing on the additional amounts falling due each month.
The Respondent, without reasonable excuse, has failed to execute a Resignation as Director or Secretary with regard to any entity in which he holds an interest in Australia, including after such documents were requested to be executed by the Respondent in a letter dated 25 January 2024.
Order alleged to have been contravened ...
Order 6(d) of the final orders made by Justice Bennett on 6 October 2023.
Date, time and location of alleged act or omission
12.01am on 9 February 2024. No location applicable.
(Emphasis added)
(a) the wife have sole use and occupation of the [X Street] Apartment and the husband to pay and be responsible for all mortgage repayments in respect of the loan secured over the title to the [X Street] Apartment, owners levies, body corporate charges, rates taxes and like apportionable outgoings during the wife's occupation;
(b) paragraph 6 of the 2018 Order continue in full force and effect;
(c) the wife retains a right of charge against any and all instruments of ownership (including shares) held by the husband in respect of the husband's interest in corporation or entity in Australia;
(d) the husband is to execute a Resignation as Director or Secretary with regard to any entity referred to in the preceding paragraph, to be held in escrow pending any default by the husband with regard to such obligations.
(Emphasis added)
It logically follows then that, absent express legislative intention for the new provisions of Pt VII, Div 13A to apply to contraventions alleged to have occurred whilst the old Pt VII, Div 13A was operable, the old provisions must still apply to such historic contraventions.
(1) A person shall be taken for the purposes of this Part to have contravened an order under this Act if, and only if:
(a) where the person is bound by the order--he or she has:
(i) intentionally failed to comply with the order; or
(ii) made no reasonable attempt to comply with the order; or
The Amendment Act made no change to this section. The section is applicable to each of the contraventions as alleged.
At the hearing of an application referred to in item 2, 3, 4 or 5 in Table 11.1, the court must:
(a) inform the respondent of the allegation; and
(b) ask the respondent whether the respondent wishes to admit or deny the allegation; and
(c) hear any evidence supporting the allegation; and
(d) ask the respondent to state the response to the allegation; and
(e) hear any evidence for the respondent; and
(f) determine the proceeding.
Note: For the orders that may be made by the court, see sections 67X, 70NBA, 70NCB, 70NDB, 70NDC, 70NEB, 70NFB, 70NFF, 112AD, 112AH and 112AP of the Family Law Act.
At the hearing of an application referred to in Table 11.1, the court must:
(a) inform the respondent of the allegation; and
(b) ask the respondent whether the respondent wishes to admit or deny the allegation; and
(c) hear any evidence supporting the allegation; and
(d) ask the respondent to state the response to the allegation; and
(e) hear any evidence for the respondent; and
(f) determine the proceeding.
Meaning of reasonable excuse for contravening an order
(1) The circumstances in which a person may be taken to have had, for the purposes of this Part, a reasonable excuse for contravening an order under this Act include, but are not limited to, the circumstances set out in subsection (2).
(2) A person (in this subsection called the respondent) shall be taken to have had a reasonable excuse for contravening an order under this Act if:
(a) the respondent contravened the order because, or substantially because, he or she did not, at the time of the contravention, understand the obligations imposed by the order on the person who was bound by it; and
(b) the court is satisfied that the respondent ought to be excused in respect of the contravention.
The Amendment Act made no change to this section.
A respondent to an application referred to in item 2, 3, 4 or 5 of Table 11.1 may file an affidavit but is not required to do so.
A respondent to an application referred to in Table 11.1 may file an affidavit but is not required to do so.
There is ample evidence that the husband has assets and financial resources which cannot be identified with precision or valued...
I accept that the husband has control of the [Fowles Family Trust] in his capacity as the Investment Committee and that he exercises that control in fact...
I find that the [Fowles Family Trust] is the puppet of the husband. Neither his sister nor the trustee exercise any control over the Trust or the assets of the Trust. I cannot attribute a value to the Trust because of the husband's non-disclosure. From the manner in which the husband has conducted these proceedings, so as to deflect any meaningful assessment of the Trust assets, I infer that the Trust assets are substantial...
I am satisfied that the husband has an income earning capacity considerably in excess of that of the wife. He has not disclosed its source or its dimensions, but I find that over these very lengthy proceedings the husband has been unable to disguise that he has the wherewithal to obtain funds when it suits him...
(1) W Pty Ltd is owned by the Fowles Family Trust ultimately.
(2) W Pty Ltd is currently involved in two appeals in the Federal Court of Australia, the first being in the matter of W Pty Ltd v Mr AO, and the second the matter of W Pty Ltd v Mr AU. By order made in mid-2025, and in the proceeding involving Mr AO, W Pty Ltd was required to pay into the Federal Court of Australia by 12 September 2025 the sum of $132,191 to abide the outcome of leave to appeal in that proceeding and, if leave to appeal is granted, to abide the outcome of any appeal brought by such leave. By order made 21 August 2025, and in the proceeding involving Mr AU, W Pty Ltd was required to pay into the Federal Court of Australia by 12 September 2025 the sum of $206,257.54 to abide the outcome of leave to appeal in that proceeding and, if leave to appeal is granted, to abide the outcome of any appeal brought by such leave. In respect of these payments of security for costs, the husband conceded that such payments had been made. I observe the total sum to be $338,448.54. I further note that in fact, the husband personally, or via an entity of which he has control and ownership, is engaged in three proceedings in the Federal Court of Australia.
(3) W Pty Ltd has engaged AN Law Firm to act in respect of the above Federal Court of Australia proceedings (the two appeals) and in the calendar year 2025, the company had paid more than $500,000 in legal costs to AN Law Firm.
(4) The legal costs of W Pty Ltd in respect of some or all of the proceedings (as described above) in the Federal Court of Australia have probably exceeded $2 million.
(5) The husband is the only shareholder of T Inc., a United States firm.
(6) The husband spent more than $750,000 in legal costs pursuing his Full Court appeal.
(7) The husband pays personal rent of $2,000 per month in respect of his current rental in Suburb GD, and W Pty Ltd pay a further $2,000 per month, with the total rental being $4,000 per month.
(8) The husband has drawn funds, in the 2025 calendar year, from L Pty Ltd, a company which he owns and of which he is a director. He described those advances variously as follows:
(a) When asked by counsel whether the amount was $100,000, he responded "I may have taken more than that".
(b) When asked by counsel whether the amount was more than $200,000, he responded "I don't remember".
(c) When asked by counsel for his best estimate, the husband responded "$30,000".
(9) The husband obtained legal advice in respect of the contravention application.
(10) The husband's deceased father's home property had a value of considerably more than USD3,000,000 at the time of the trial before Bennett J. The husband's father died in 2019. When asked by counsel whether the husband had inherited his father's home property as a tenant in common with his brother, and in or about 2022, the husband denied any knowledge as to his ownership, simply saying that he did not know if he had such an interest. Nor was he interested in finding that out, at the time.
Sanctions for failure to comply with orders
(1) If a court having jurisdiction under this Act is satisfied that a person has, without reasonable excuse, contravened an order under this Act, the court may make an order for the imposing, in respect of the person, of one or more of the sanctions available to be imposed under subsection (2), being a sanction or sanctions that the court considers to be the most appropriate in the circumstances.
...
(2) The sanctions that are available to be imposed by the court are:
(a) to require the person to enter into a bond in accordance with section 112AF; or
(b) to impose a sentence by order on the person, or make an order directed to the person, in accordance with section 112AG; or
(c) to fine the person not more than 60 penalty units; or
(d) subject to subsection (2A), to impose a sentence of imprisonment on the person in accordance with section 112AE.
(2A) The court must not impose a sentence of imprisonment on the person under paragraph (2)(d) in respect of a contravention of a maintenance order unless the court is satisfied that the contravention was intentional or fraudulent.
(3) An order under subsection (1) may be expressed to take effect immediately, or at the end of a specified period or on the occurrence of a specified event.
(4) Where a court makes an order under subsection (1), the court may make such other orders as the court considers necessary to ensure compliance with the order that was contravened.
The Amendment Act made no change to this section.
(1) A sentence of imprisonment imposed on a person pursuant to paragraph 112AD(2)(d) shall be expressed to be:
(a) for a specified period of 12 months or less; or
(b) for a period ending when the person:
(i) complies with the order concerned; or
(ii) has been imprisoned pursuant to the sentence for 12 months or such lesser period as is specified by the court;
(2) A court shall not sentence a person to imprisonment pursuant to paragraph 112AD(2)(d) unless the court is satisfied that, in all the circumstances of the case, it would not be appropriate for the court to deal with the contravention pursuant to any of the other paragraphs of subsection 112AD(2).
(3) If a court sentences a person to imprisonment pursuant to paragraph 112AD(2)(d), the court shall:
(a) state the reasons why it is satisfied as mentioned in subsection (2); and
(b) cause those reasons to be entered in the records of the court.
(4) The failure of a court to comply with subsection (3) does not invalidate a sentence.
(4A) A court that sentences a person to imprisonment under paragraph 112AD(2)(d) may:
(a) suspend the sentence upon the terms and conditions determined by the court; and
(b) terminate a suspension made under paragraph (a).
(5) A court, when sentencing a person to imprisonment under paragraph 112AD(2)(d) may, if it considers it appropriate to do so, direct that the person be released upon the person entering into a bond described in subsection (6) after he or she has served a specified part of the term of imprisonment.
(6) A bond for the purposes of subsection (5) is a bond (with or without surety or security) that the person will be of good behaviour for a specified period of up to 2 years.
(7) Without limiting the circumstances in which a court may discharge an order under section 112AK, a court that has sentenced a person to imprisonment for a period expressed as provided by paragraph (1)(b) may order the release of the person if it is satisfied that the person will, if he or she is released, comply with the order concerned.
(8) To avoid doubt, the serving by a person of a period of imprisonment under a sentence imposed on the person under paragraph 112AD(2)(d) for a failure to make a payment under a maintenance order does not affect the person's liability to make the payment.
The Amendment Act made no change to this section.
What is the most appropriate sanction in the circumstances?
(1) the quantum of arrears relating to all the payment obligations under the final orders the husband has contravened considerably exceed $1,000,000;
(2) since the making of the final orders, the husband has elected to use funds for his own purposes, including paying his own personal legal fees in the sum of at least $985,274.15, in priority to meeting his Court-ordered obligations;[19]
(3) the husband has not made any payments to the wife in accordance with his obligations under the final orders (save for funds that Services Australia has garnished from the husband under a registered maintenance liability);[20]
(4) the husband has not adduced any evidence that he is contrite and has not offered to rectify his contraventions, save for an offer to sit down with the wife and "resolve some issues";[21]
(5) the husband has attempted to deal with the X Street apartment by purporting to offer it as 'indicative security' to the ATO for his business debts as recently as 6 May 2025, despite being aware of the wife's entitlement pursuant to the final orders;
(6) the husband has not put any plausible evidence before the Court that there was any practical impediment to his compliance with the final orders; and
(7) the contraventions are serious, substantial and enduring. The husband's deliberate defiance of the final orders shows a stubborn and wilful disobedience toward the Court.
(1) In Coalter & Loxton [2021] FedCFamC1F 283, the Court found the respondent guilty of three counts of contravention and made orders, relevantly, that a term of imprisonment for six months be served by the respondent which arose from the respondent's serious, ongoing and flagrant breaches of the court orders and obligations of disclosure.
(2) In Woolly & Woolly [2023] FedCFamC1F 634, Carter J made orders, relevantly, that a term of imprisonment of 90 days be served by the respondent if the sum of $200,000 was not paid by the respondent to the applicant's solicitors, arising from a breach of interim injunctive orders for the preservation of assets pending final determination.
(3) In Giddens & Giddens [2016] FCCA 3201, Hughes J made orders, relevantly, that the respondent husband serve a six-month sentence of imprisonment, to be suspended after two months upon the respondent entering a bond in the sum of $5,000 with a condition of good behaviour for twelve months from the date of the bond being entered. In that case, the respondent disposed of much of an approximately $300,000 worker's compensation payment of which the wife was seeking $60,000 by way of property settlement. The wife had filed an urgent application seeking seizure of the respondent's motor vehicle pending the property settlement; Hughes J subsequently made orders restraining the respondent husband from selling, transferring, encumbering or taking any action which would cause diminution in the value of the motor vehicle. The husband then sold the motor vehicle and expended the proceeds of the sale. The Court found that the respondent husband's actions were a "clear, conscious and deliberate contravention of the order" and that the only appropriate sanction in the circumstances was a custodial sentence.[22]
I certify that the preceding one hundred and forty-six (146) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Hartnett.
[1] Pursuant to Division 11.2.1 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
[2] Fowles [2025] FedCFamC1A 147 at [36].
[3] Royal Guardian Mortgage Management Pty Ltd v Nguyen (2016) ALR 128 at [9].
[4] Fowles & Fowles (No 4) [2023] FedCFamC1F 819.
[5] Fowles & Fowles (No 2) [2024] FedCFamC1A 115.
[6] Fowles & Fowles (No 2) [2024] FedCFamC1A 115 at [92] and [125].
[7] Annexure "PH-8" to the wife's affidavit filed 27 November 2024.
[8] Annexure "PH-7" to the wife's affidavit filed 27 November 2024.
[9] Wife's affidavit filed 27 November 2024 at [45].
[10] Evidence Act 1995 (Cth) s 140.
[13] Fowles & Fowles (No 4) FedCFamC1F 819.
[15] Cluny & Skinner (No 2) [2017] FamCA 547.
[16] Woolly & Woolly [2023] FedCFamC1F 634.
[17] Wife's affidavit filed 27 November 2024 at [16].
[18] Zamir & Zamir [2022] FedCFamC1A 193; (2022) 65 Fam LR 612 at [63].
[19] Wife's affidavit filed 27 November 2024 at [18].
[20] Wife's affidavit filed 27 November 2024 at [16].
[21] Annexure "JF-1" to the husband's affidavit filed 31 March 2025.
[22] Giddens & Giddens [2016] FCCA 3201 at [31].