[2025] FedCFamC2F 1232
General information, not legal advice.
Federal Circuit and Family Court (Div 2)
2025-12-23
Original judgment source is linked above.
(a) The husband and Ms D shall sign all documents and do all acts and things necessary to implement a sale by private treaty of the Suburb B property at a price as is agreed to between the husband, Ms D and the wife and failing agreement as determined by the President of the New South Wales Division of the Australian Property Institute or his/her nominee, with such sale to be completed within 3 months of the due date;
(b) The husband and Ms D shall retain a real estate agent ("the agent") for the purposes of effecting the sale referred to in (a), above;
(c) The husband and Ms D shall retain a solicitor or conveyancer for the purposes of effecting the sale referred to in (a), above;
(d) The husband and Ms D shall vacate the Suburb B property no later than 14 days prior to any settlement date for the sale of the Suburb B property so as to leave the Suburb B property in a clean and tidy condition for the delivery up of vacant possession at completion of any sale; and
(e) Upon the settlement of the sale, the husband and Ms D shall stand possessed of the net proceeds of sale which shall be disbursed as follows;
(i) Payment of the agent's commission and advertising expenses of the sale;
(ii) In payment of the solicitor or conveyancer's costs and legal expenses of the sale;
(iii) In discharge of the mortgage secured by N Bank ("N Bank") and registered against the title to the Suburb B property; and
(iv) The remainder shall be paid to the husband, Ms D and the wife, as follows: -
- The Settlement Sum (together with any interest thereon from the due date to the date of payment at the rate or rates prescribed under the Federal Circuit and Family Court of Australia Rules 2021 (Cth)) to the wife; and
- The balance to the husband and Ms D, as directed by them in writing.
(a) All personal property now in her possession or control;
(b) All shares, debentures, units in unit trusts, bank, building society or credit union accounts standing in her name; and
(c) All interests in life insurance policies and superannuation funds standing in her name.
(a) All personal property now in his possession or control;
(b) All shares, debentures, units in unit trusts, bank, building society or credit union accounts standing in his name; and
(c) All interests in life insurance policies and superannuation funds standing in his name.
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) Pursuant to s.106B of the Family Law Act 1975 (Cth) ("the Act"), the transfer between the respondent husband ("the husband") as transferor and Ms D ("Ms D"), the [second] respondent as transferee, in relation to the property known as K Street, Suburb B in the State of NSW ("the Suburb B property"), Folio Identifier ..., being lot ... in deposited plan ... (transfer, land registry document identification ...) dated 14 September 2021 be set aside.
(2) Pursuant to s.106B of the Act, the transfer between the husband as transferor and Mr G ("Mr G"), the [third] respondent as transferee, in relation to the property known as L Street, Suburb M in the State of NSW ("the Suburb M property"), being lot ... in deposited plan ... (transfer, land registry document identification ...) dated 21 September 2018 be set aside.
(3) That the wife be appointed as trustee for the sale of the Suburb B property and, for that purpose:
(a) The Suburb B property shall vest in the name of the wife, to be held on trust to sell the same by private treaty at the earliest possible date and stand possessed of the net proceeds of sale which will be dispersed as follows:
(i) Payment of agents' commission and advertising expenses and legal expenses of the sale;
(ii) In discharge of the mortgage secured by N Bank ("N Bank");
(iii) In re-imbursement of expenses incurred by the wife in readying the Suburb B property for sale in accordance with the written advice of the nominated selling agent. That for the purpose of this order, the wife must provide the husband with copies of invoices, receipts and proof of payment for expenses incurred in readying the Suburb B property for sale in accordance with the written advice of the selling agent; and
(iv) The remainder shall be paid to the wife and the husband, as follows
- (A) 55% to the wife; and
- (B) 45% to the husband.
(b) The husband and/or Ms D shall vacate the Suburb B property within 28 days from the date of these orders and leave the Suburb B property in a clean and tidy condition.
(4) That, in the event that the Suburb B property is not sold by private treaty within a period of 3 months of being listed for sale by private treaty in accordance with the above orders, then the wife shall, forthwith, do all acts and things necessary, including executing all documents necessary to cause the said property to be listed for public auction at the earliest possible date at a reserve price to be determined by the selling agent and to disburse the proceeds of the said sale in accordance with order 3, as set out above.
(5) That, in the event that the Suburb B property fails to sell by public auction at the first auction, then the Suburb B property is to be offered again for auction every 2 months from the date of the first auction until the Suburb B property is sold.
(6) That the wife be appointed as trustee for the sale of the Suburb M property and, for that purpose:
(a) The Suburb M property shall vest in the name of the wife, to be held on trust to sell the same by private treaty at the earliest possible date and stand possessed of the net proceeds of sale which will be dispersed as follows:
(i) Payment of agent's commission and advertising expenses and legal expenses of the sale;
(ii) In discharge of any mortgage secured against the Suburb M property;
(iii) In re-imbursement of expenses incurred by the wife in readying the Suburb M property for sale in accordance with the written advice of the nominated selling agent. That for the purpose of this order, the wife must provide the husband with copies of invoices, receipts and proof of payment for expenses incurred in readying the Suburb M property for sale in accordance with the written advice of the selling agent; and
(iv) The remainder shall be paid to the wife and the husband, as follows
- (A) 55% to the wife; and
- (B) 45% to the husband.
(b) The husband and/or [Mr G] shall vacate the Suburb M property within 28 days from the date of these orders and leave the Suburb M property in a clean and tidy condition.
(7) That, in the event that the [Suburb M] property is not sold by private treaty within a period of 3 months of being listed for sale by private treaty in accordance with the above orders, then the wife shall, forthwith, do all acts and things necessary, including executing all documents necessary to cause the said property to be listed for public auction at the earliest possible date at a reserve price to be determined by the selling agent and to disburse the proceeds of the said sale in accordance with order [6], as set out above.
(8) That, in the event that the [Suburb M] property fails to sell by public auction at the first auction, then the [Suburb M] property is to be offered again for auction every 2 months from the date of the first auction until the [Suburb M] property is sold.
(9) That, within 7 days of the date of these orders, the husband shall make available for collection by the wife [of] the following items:
(a) Stamp collection, including the "..." stamp;
(b) Photographs;
(c) Clothing;
(d) Antique furniture;
(e) Gold rings;
(f) Gold earrings; and
(g) Gold necklace.
(10) That, as between the parties and subject to the above orders, the wife shall retain all interest in and entitlement to:
(a) All personal property now in her possession or control;
(b) All shares, debentures, units in unit trusts, bank, building society or credit union accounts standing in her name; and
(c) All interests in life insurance policies and superannuation funds standing in her name.
(11) That, as between the parties and subject to the above orders, the husband shall retain all interest in and entitlement to:
(a) All personal property now in his possession or control;
(b) All shares, debentures, units in unit trusts, bank, building society or credit union accounts standing in his name; and
(c) All interests in life insurance policies and superannuation funds standing in his name.
(12) That the wife shall retain and indemnify and keep indemnified the husband in relation to all liabilities currently standing in her name or control.
(13) That the husband shall retain and indemnify and keep indemnified the wife in relation to all liabilities currently standing in his name or control.
(14) That the parties, hereby, release the other from all actions, proceedings, claims, demands, costs and expenses whatsoever and howsoever arising which either of them had or may have against the other for or by reason of or in respect of any act, cause, matter or thing.
(15) That, in the event that either party refuses of neglects to execute any deed, document or instrument necessary to give effect to these orders, the Registrar of the Court be appointed pursuant to s.106[A] of the Act to execute such deed, document or instrument in the name of the said party and do all acts and things necessary to give validity and operation to the deed, document of instrument upon the Registrar being provided with verification of such refusal of failure by way of affidavit.
(1) That the wife's application be dismissed at the wife's costs.
(2) That the wife [and the wife's solicitor] pay the husband's costs incurred.
Attached to Exhibit "1" was a statement of costs incurred by the husband which totalled $31,665.00 made up of the following:
(a) Property valuation fee ($660.00);
(b) Conciliation conference fee ($205.00);
(c) Translation fee ($500.00);
(d) Printing fee ($300.00); and
(e) Other costs wasted ($30,000.00).
(a) The application in a proceeding filed by the husband on 25 February 2025 and sealed on 27 February 2025 was dismissed. That application sought that the wife's witness, Mr J, be joined as a party and the vacation of the hearing dates then listed to commence on 10 March 2025.
(b) The application in a proceeding filed by the husband on 20 February 2025 and sealed on 24 February 2025 was dismissed. That application sought that the final hearing be adjourned until after the Court's ordered mediation with Ms Q had been completed. The evidence relied upon in support of an adjournment of the final hearing also raised concerns that the parties had not reached agreement as to the value of items of real estate and had not implemented orders for the appointment of a Single Expert to value those items, the subject of the trial directions made on 18 October 2024, without any explanation as to why those directions had not been complied with.
(c) The application in a proceeding filed by the wife on 11 February 2025 and sealed on 17 February 2025 was dismissed. That application sought leave for the wife to inspect subpoenas which had already been dealt with in terms of orders dealing with various Notices of Objection to subpoena, as referred to above.
(d) The application in a proceeding filed by the husband on 6 February 2025 and sealed on 17 February 2025 was stood over until the final hearing. That application sought the summary dismissal of the wife's substantive application with a stay on all other proceedings, including the mediation until determination of that application.
(e) The application in a proceeding filed by the wife on 2 October 2024 and sealed on 17 February 2025 was dismissed. That application sought orders, essentially, for final relief in terms of the wife's substantive application, then listed for final hearing.
The Court also ordered the husband and the wife provide, by 4.00pm on 7 March 2025, the Court with a document identifying any specific paragraphs of their respective trial affidavits to be relied upon at hearing in terms of the wife's claim as against Ms D and Mr G, given that the Court had then determined to bi-furcate the hearing so as to determine, as a first issue, the wife's claim against Ms D and Mr G so as to determine the property pool then available for division between the husband and the wife. The Court, in considering that matter, raised with the parties the lack of any valuation evidence which would be required by it, noting that the husband and the wife had, in March 2022, agreed on a valuation for the Suburb B property at $2,800,000.00 reflective of a valuation then provided by Mr T of U Pty Ltd on 7 January 2021, being Exhibit "A". Clearly, the Court was concerned that if it was to rely on that valuation, which could form the basis for orders between the parties, any sale of the property would determine an exact valuation which may be problematic if the split was to be based on Mr T's valuation which was some 4 years old, at the time. The husband asserted that, as a pensioner, he did not have sufficient funds to pay Ms Q the sum $1,950.00 to enable the mediation to occur (noting that the wife, Ms D and Mr G had paid their shares and had attended their respective intakes) and that Ms Q would not allow the mediation to proceed without the husband's payment having been received in full. She was, further, not prepared to enter into any repayment plan with the husband. In those circumstances, it was difficult to see how the husband would fund his share of any valuation fees, noting that orders had, previously, been made for valuations to be obtained with the costs to be shared equally. Clearly, the Court accepts that it is the husband's and Ms D's position that the Suburb B property is not to be sold. Clearly, the wife's position is that such a sale would seem to be the only likely source for any payment to her of any monies by way of a property distribution pursuant to s.79 of the Act.
(1) The [wife's] application be dismissed at her cost.
(1) The [wife's] [further amended] application be dismissed;
(2) That the wife pay her costs arising from and incidental to these proceedings on an indemnity basis.
(a) Her affidavit sworn on 14 February 2022 and filed on 18 February 2022 (paragraphs 5-9, 13, 16-17, 20, 23- 25, 27, 32-33, 37-38 and 42(2)); the Court notes that any references to any, previously, filed affidavits were struck out (see Exhibit "B").
(b) Her financial statement sworn and filed on 7 December 2018 (see Exhibit "C");
(c) Her financial questionnaire dated 14 February 2022 and filed on 18 February 2022 (see Exhibit "D"); and
(d) The affidavit of Mr J affirmed on 29 August 2020 and filed on 1 September 2020.
(a) His affidavit affirmed and filed on 18 February 2022; the Court notes that any references to any, previously, filed affidavits were also struck out; and
(b) His financial statement sworn and filed on 19 March 2019.
(a) The Wife:
(i) The affidavit of Mr Vaughan sworn/affirmed 20 May 2022 and filed on 13 July 2022 (paragraphs 1-10);
(ii) Her affidavit sworn/affirmed and filed on 8 September 2022 (paragraphs 6, 11- 13 and 15- 20);
(iii) Her affidavit sworn/affirmed and filed on 6 December 2022 (paragraphs 2-15);
(iv) The affidavit of Mr Vaughan sworn/affirmed on 3 May 2023 and filed on 4 May 2023 (paragraphs 5- 9);
(v) Her affidavit sworn/affirmed on 24 January 2024 and filed on 25 January 2024 (paragraphs 2 and 4-12);
(vi) Her affidavit sworn/affirmed and filed on 20 March 2024 (being a 4-page Affidavit) (paragraph 1);
(vii) Her affidavit sworn/affirmed and filed on 20 March 2024 (being a 6-page Affidavit) (paragraphs 3-4);
(viii) Her affidavit sworn/affirmed and filed on 21 June 2024 (paragraphs 2 and 7-10);
(ix) Her affidavit sworn/affirmed and filed on 2 October 2024 (paragraphs 3(a)- (e), 4(a) and (b), 5(a) and (c), 6 (a) and (c), 9(c) and 11(a) and (b));
(x) Her affidavit sworn/affirmed and filed on 2 December 2024 (paragraphs 5-6, 10 and 19- 22);
(xi) Her Updated Financial Statement sworn/affirmed on 8 January 2025 and filed on 13 January 2025;
(xii) Her affidavit sworn /affirmed on 27 January 2025 and filed on 30 January 2025 (paragraphs 4-5, 17, 29, 43- 49, 51-54, 57- 59, 69-71 and 73); and
(xiii) Her affidavit sworn/affirmed on 7 March 2025 and filed on 8 March 2025 but specifically identifying the relevant paragraphs in her affidavit material that she relies upon in respect of her claim against Ms D and Mr G.
(b) The husband:
(i) His affidavit affirmed on 28 April 2022 and filed on 2 May 2022 (paragraph 2);
(ii) His affidavit sworn and filed 5 October 2022 (paragraphs 1-3, 9 and 35- 70);
(iii) His affidavit sworn/ affirmed and filed 29 February 2024 (paragraphs 1- 13);
(iv) His Financial Statement sworn/affirmed on 1 February 2025 and filed 3 February 2025;
(v) His affidavit sworn and filed on 6 February 2025 (paragraphs 22- 28); and
(vi) His affidavit sworn/ affirmed on 7 March 2025 but rejected from filing as it was not deposed to in the presence of a solicitor/ Justice of the Peace but specifically identifying the relevant paragraphs in his affidavit material that he relies upon in respect of the wife's claim against Ms D and Mr G. Leave was granted for its reliance, in those terms.
(c) Ms D:
(i) Her affidavit sworn/ affirmed on 6 December 2022 and filed on 7 December 2022.
(d) Mr G:
(i) His affidavit sworn/affirmed and filed on 21 November 2022.
No party sought to cross-examine Mr Vaughan in terms of his affidavits which were, simply, read.
The affidavits of the husband and the wife were voluminous and covered many unnecessary and irrelevant matters. Much of the material contained therein involved inadmissible evidence and included opinions, arguments and scandalous assertions. The Court has not sought to deal with each and every allegation so contained within that material.
The wife's Affidavit sworn on 14 February 2022 (together with annexures)
The wife's financial statement filed on 7 December 2018
The wife's Financial Questionnaire filed on 18 February 2022
Commonwealth Bank ("CBA") Statements of Mr J dated from 01.10.2019 to 01.04.2021 and from 01.02.2022 to 28.02.2022
Email to the husband enclosing Court book dated 22 March 2022
Provisional Apprehended Domestic Violence Order ("ADVO") dated early 2014
Loan Agreement between the husband and Ms D with the entity known as "N Bank"
Certificate of title for Lot ... dated 11.2007 and transfer of that property dated 06.2018
Transmission application and transfer of Lot ... DP ...
Application for migration to Australia by partner - S5: Department of Homes Affairs (pages 320-342)
Westpac Choice bank statement in the name of the husband and Ms C (pages 293 of S5 pt. 1)
Statutory declaration contained within S29 - N Bank
Pages 1-3 of bank statements for the husband's CBA account ending #...01
Short Application form contained within S29 - N Bank
N Bank statements for the mortgage on the Suburb B property showing the agreed and current debt secured over that property
Items 11 & 12 of the CBA statements contained within S37 - CBA
Email correspondence between the wife and Ms D in respect of the agreed value of the Suburb H property
Documents produced under subpoena to S Bank in respect of the mortgage secured over the Suburb M property
Previously MFI "1" pertaining to the mortgage of Ms D and Ms C from Westpac together with the email from Ms D received on 12.3.25
Email correspondence from the wife pertaining to Mr J's loan including bank statements of the wife with CBA
Chinese and English Translation of the wife's China Insurance contributions from her employer
Chinese and English translation of the wife's Google search
Updated Chinese and English translation of the wife's email to the husband dated 8 April 2008
Chinese and English translation of the wife's email to the husband dated 8 April 2008
Chinese and English translation of email with bank account details
Chinese and English translation of email dated 23 June 2009
Chinese and English translation of email from the wife to the husband dated 5 August 2009
Chinese and partial English translation of email from the wife to the husband dated 18 February 2009
Chinese and English translation of email from the wife to the husband dated 9 September 2010
Chinese and English translation of Y Organisation Personal Information Query
Photograph of Mr J and the wife at the retirement village apartments
Email from the wife to the husband, Ms D and Mr G dated 02.02.24
Application to visit Australia for tourism lodged by the wife dated 30 June 2005 (pt 1)
Application to visit Australia for tourism lodged by the wife dated 2005
Letter in relation to the Application to visit Australia for tourism lodged by the wife dated June 2005 (pt 3)
Document in relation to Application to visit Australia for tourism lodged by the wife dated June 2005 (pt 4)
Document with Chinese and English translation relating to Z Organisation
Divorce agreement between the wife and the husband with certified English translation
Transfer of the Suburb B property whereby Ms D comes onto the title
Valuation report prepared by Mr V in respect of the Suburb B property
Draft Balance Sheet tendered on the mention in October 2024
Further draft Balance Sheet provided to the parties by the Court (noting that there was no reference on that balance sheet to the Suburb F property noting that the wife sought no relief against Ms C)
Further draft Balance Sheet provided to the parties by the Court
Updated Balance Sheet settled at the end of the hearing on 13.3.25 and provided to the parties
(a) The husband's written submissions were received on 8 April 2025;
(b) The wife's written submissions were received on 28 April 2025 (1 day before the due date of 29 April 2025);
(c) Ms D's written submissions were received on 2 May 2025 (3 days before the due date of 5 May 2025);
(d) Mr G's written submissions were received on 5 May 2025; and
(e) The wife's written submissions in reply to those of the husband and to those of Ms D and Mr G were received on 26 May 2025. (6 days after the due date of 19 May 2025).
(a) In 1953, the husband was born and he is, currently, 71 years of age.
(b) In 1961, the wife was born and she is, currently, 64 years of age.
(c) In the 1970s, the wife first met the husband when his parents had supported her in China while attending her local school there.
(d) Between 1978 and 1983, the husband and the wife were students at University in China. The husband's first wife, being Ms E, was also a student at that university and was known of by the wife.
(e) In August 1983, the wife commenced employment in China as confirmed on her identification card #... (see Exhibit "10").
(f) In around 1984, Ms E migrated to Australia and married the husband.
(g) Between 1984 and 1986, the husband obtained his qualifications and worked in Sydney. The husband was employed as a scientist.
(h) In 1986, Ms D was born of the relationship between the husband and Ms E and she is, currently, 38 years of age.
(i) In mid-1989, the husband became an Australian citizen.
(j) In or about 1997, the husband and Ms E acquired, as joint tenants, for the sum of, approximately, $140,000.00 the property at AA Street, Suburb H being Lot ... in Deposited Plan ... and as described in certificate of title folio identifier ... ("the Suburb H property").
(k) On or about December 1998, the husband and Ms E acquired, as joint tenants, for the sum of, approximately, $378,000.00 the Suburb B property.
(l) On or about March 1999, Ms E acquired from Mr and Mrs BB for the sum of, approximately, $220,000.00 the Suburb M property.
(m) In around 1999, the wife acquired for the sum of, approximately, 12,000.00 Yuan the property known as Property 2, China ("Property 2, China").
(n) In 1999, Mr G was born of the relationship between the husband and Ms E and he is, currently, 26 years of age.
(o) On or about October 1999, Ms E acquired from Ms CC for the sum of, approximately, $290,000.00 the property at DD Street, Suburb EE, NSW being the land as described in folio identifier ... ("the DD Street property").
(p) At a date not particularised but around this time, Ms E and the husband acquired the property at FF Street, Suburb EE, NSW being the land as described in folio identifier ... ("the FF Street property").
(q) In 2001, the husband ceased his employment at GG Organisation. The husband maintained that he did so, so as to care for Ms E who had then been diagnosed with cancer in about 2000. Ms D confirmed the date of that diagnosis. Ms E had been employed as a scientist at HH Organisation. The wife maintained that Ms E was not diagnosed with cancer until about 2002/2003 and that the husband had given up his employment to engage in business and investing opportunities. Little turns on that difference.
(r) On or about May 2003, the husband acquired from Mr JJ for the sum of, approximately, $750,000.00 (as referred to in transfer registration number ...) a 50% share as tenants in common with Mr KK ("Mr KK") and Mr MM ("Mr MM") (who held the remaining 50% as to 49% and 1%, respectively), in the property at P Street, Suburb F being as described in folio identifier ...("the Suburb F property"). Mr KK and Mr MM were operating in partnership a building business/company which, the husband maintained, had gone "bankrupt". He also stated that Mr KK and Mr MM were, themselves, also made bankrupt. While the husband denied that he had been made bankrupt, that denial was inconsistent with the statement referred to in the definitions and interpretation of the Will, referred to in (s), below. Nevertheless, the wife maintained that the husband had been successful in his property investments which had benefited the family.
(s) In June 2003, Ms E executed her Will ("Ms E's Will") prepared by LL Law Firm which acknowledged in the 'Definitions and Interpretation' section of the document that the husband was an undischarged bankrupt who had not fully complied with or was, otherwise, in default under the terms of a deed of arrangement under Part 10 of the Bankruptcy Act 1966 (Cth), and that he had not made the final payment under composition made by him with his creditors. Ms E's Will provided for the husband to be the sole executor and trustee but divided her estate between the First Principal Beneficiary (and parties related thereto) and the Second Principal Beneficiary (and parties related thereto) with the First Principal Beneficiary being Ms D and the Second Principal Beneficiary being Mr G by division of one (1) half of her estate to the First Trust Fund and the remaining half of her estate to the Second Trust Fund, respectively. Ms E's Will did not identify any specific items of property to be so vested in the respective Trust Funds. The husband was provided with extensive powers pursuant to Ms E's Will.
(t) On 30 June 2003, the husband and Ms E executed a transfer for $0.00 which transferred their joint tenancy ownership of the Suburb B property and of the Suburb H property into their names as tenants in common in equal shares, as referred to in transfer registration number ... (see Exhibit "K').
(u) In 2004, Ms E died.
(v) In mid-2005, following the death of Ms E, on the wife's version, the husband contacted the wife and requested her assistance in raising his 2 children, being Ms D, then aged about 18 years and a student at University and Mr G, then aged about 6 years and a student in primary school (collectively referred to as "the children"). The husband maintained that the wife had contacted him, having heard of the death of Ms E and had informed him that she had been suffering from some family violence perpetrated by her stepfather and that he had offered her some assistance to remove herself from that. The husband also asserted that the wife had informed him that her brother's sponsorship of her United States ("US") Permanent Residency Visa application had been rejected on a number of occasions. The husband maintained that the wife had told him that her dream was to migrate to the US to escape what, he said, she had described as her "miserable" life in China. The husband said that he had agreed to help her come to Australia first.
(w) In June 2005, the wife applied for a Tourist Short Stay Visa to travel to Australia for the purposes of visiting the husband who, she described, was her fiancé. At that time, the wife disclosed that she had, inter alia, an older brother then residing in the US.
(x) In around July 2005, the wife was employed as a health care professional of a major hospital in City NN, China. The wife maintained that she did not have a "miserable" life in China.
(y) As of July 2005, the wife had interests, as asserted by the husband, in the following properties in China being described as: Property 3, China ("Property 3"), Property 2, China (as referred to in (m) above), Property 4, China ("Property 4") and Property 5, China ("Property 5"). A contract for the purchase of Property 1, China ("Property 1") was produced by the husband which the wife denied ever signing (see Exhibit "13D"). The husband claimed that Property 1 existed and was a current asset of the wife. The wife denied the same.
(z) In mid-2005, the Probate of Ms E's Will (see Exhibit "Court 5") was granted by the Supreme Court of New South Wales and the husband was appointed her executor. Ms E was described as having a 100% interest in the DD Street property (estimated worth of $600,000.00) and the Suburb M property (estimated worth of $400,000.00) and a 50% interest in the Suburb B property (estimated worth of $500,000.00), the FF Street property (estimated worth of $300,000.00) and the Suburb H property (estimated worth of $150,000.00). She had superannuation totalling $124,117.85. She also held a 50% interest, as joint tenant with the husband, in Motor Vehicle 1 (estimated worth of $42,000.00).
(aa) On 5 September 2005, the husband, by way of a transmission application (registered number ...), became the sole registered proprietor of the FF Street property as the executor of Ms E's Will.
(bb) On or about September 2005, the wife arrived in Australia on a 3-month Tourist Visa to travel supported by the husband and commenced living with the husband at the Suburb B property. At some time, the wife also lived at the DD Street property. The wife then commenced caring for the husband and the children and maintained the household and taught the children Chinese. The wife also maintained that she carried out some works to the properties, as identified in (ggg), below.
(cc) At or about 28 September 2005, the husband was entitled to be the registered owner of the following properties: the Suburb B property (previously owned as to 50% with Ms E), the DD Street property (previously owned as to 100% by Ms E), the FF Street property (previously owned as to 50% with Ms E), the Suburb M property (previously owned as to 100% by Ms E) and the Suburb H property (previously owned as to 50% with Ms E).
(dd) All of the properties identified in (cc), above, save for the Suburb B property, were rented out and the husband was receiving rental income from them.
(ee) On 9 November 2005, the husband, by way of a transmission application (registered number ...), became the sole registered proprietor of the Suburb M property as the executor of Ms E's Will. The wife witnessed the husband's execution of this transmission application disclosing her then address as the DD Street property.
(ff) In or around December 2005, the wife returned to China and returned to her employment there, as set out in paragraph (x), above. She was then a health care professional in charge of a clinic at a major Chinese hospital.
(gg) In February 2006, the husband and Mr G travelled to City NN, China and lived with the wife, likely in Property 2, China, for nearly 12 months. The wife's parents lived in City NN. The wife said that, when the husband lived with her in China, she assisted Mr G in obtaining enrolment in a school, paying for his fees (about $900.00) and his after school and other associated expenses and assisted him with his homework after she returned from her work. The wife said that she also employed 2 part-time housekeepers to care for the husband and Mr G, as well as a tutor for Mr G. The wife maintained that the husband was busy visiting friends and family in various cities in China and looking at investments. The husband denied this, noting that his parents then lived in City OO.
(hh) On 31 March 2006, the husband, by way of a transmission application (registered number ...), became the sole registered proprietor of the DD Street property as the executor of Ms E's Will.
(ii) On or about May 2006, the husband, became the sole registered proprietor of the Suburb B property, following the registration of a transmission application (registered number ...) in relation to Ms E's 50% share.
(jj) On or about May 2006, the husband, as sole mortgagor, mortgaged the Suburb B property which secured the advance of loan funds of $1,000,000.00 from PP Company, by way of a mortgage (registered number ...) on title.
(kk) In or around late 2006, the husband and the wife got engaged in China. The husband applied for the wife to obtain a Prospective Marriage Visa to travel to Australia.
(ll) In early 2007, the wife resigned from her employment position, as referred to in paragraphs (x) and (ff), above, and travelled to Australia. The husband's production of a Google search (see Exhibit "3") in relation to the procedure for resignation of a Government employee in China did not dispute that position. The wife maintained that she had then closed all her bank accounts in China. While the husband provided an email from the wife to himself in March 2010 which referred to an account number ending #...85 in the wife's name with QQ Bank, no other information was provided as to any balance sum.
(mm) In 2007, the husband and the wife were married in New South Wales, Australia. This is so notwithstanding the husband's contention that, at no point, did he wish to marry the wife as he said he only treated her as a family friend who needed his help. That assertion gave him little credit.
(nn) In mid-2007, the husband applied to sponsor the wife's permanent residency in Australia. This is so notwithstanding the husband's contention that the wife only wanted this sponsorship as she did not want to seek that Visa by staying in Australia or living with him as she had a full-time job in China as a health care professional in a hospital, there. That contention is, entirely, in conflict with the basis of a permanent residency application based on the husband sponsoring the wife's migration. That assertion, similarly, gave him little credit.
(oo) In about November 2007, Ms D graduated from University.
(pp) Between July and December 2007, the wife obtained a Multiple Entry Visa to enable her to travel back to China and to return to Australia. The wife maintained that she had then travelled to China for several months at a time in 2007 and 2008 to look after the husband's sick parents who had been, at various times, hospitalised. The wife maintained that she had assisted in dealing with their issues in hospital, arranged for carers and had attended to home security modifications. During 2008, the Court accepts that the wife had attended a training session and had effected some work while in China as referred to in an email from her to the husband in April 2008 (see Exhibits "3A" and "4") notwithstanding the wife's concerns that this email had been fabricated when the husband had access to her computer after his computer had "crashed" in 2008 and he had retained that computer. The Court notes that Exhibit "10" refers to the wife's staff status as "retired". There was no date on Exhibit "10" to determine at what time that status was said to have operated from.
(qq) In about late 2007, Ms D claimed that the husband had approached her explaining that he was one of the owners of the Suburb F property and that one of the other owners was in financial hardship and that he had asked her to buy that property to help them out.
(rr) On or about December 2007, the husband, Mr KK and Mr MM transferred their interests in the Suburb F property to Ms D, by way of a transfer (registered number ...), for a consideration of $500,000.00, the receipt of which was acknowledged. Ms D obtained a deferred benefit under the First Home Buyers' Grant with respect to the stamp duty due on that transfer. The wife disputed that Ms D was entitled to this benefit as she was not then residing at that property. The husband asserted that Ms D was, at the relevant time, living at the Suburb F property. Nothing turns on that dispute.
(ss) On or about 27 August 2008, by way of a transmission application (registered number ...), the husband, as the executor of Ms E's Will transmitted her then half share in the Suburb H property to Ms D, as the beneficial owner under the terms of Ms E's Will. At that time, the Suburb H property was then owned by the husband and Ms D.
(tt) On or about 27 August 2008, the husband executed a transfer (registered number ...) transferring his then half share of the Suburb H property to Ms D for the consideration of $170,000.00, the receipt of which was acknowledged. Ms D claimed that the funds to acquire the husband's half interest came from Ms E's estate. The Court notes that the inventory for property attached to the Probate of Ms E's Will did not disclose any liquid monies in her estate. The Court also notes that there was a further affidavit filed in the Supreme Court of New South Wales deposed to by the husband which referred to assets of Ms E which had not been disclosed to the Supreme Court, being Super Fund 2 proceeds of $10,125.00, 435 shares in RR Company owned jointly with him valued at, approximately, $2,305.50 and 2120 shares in SS Company owned jointly with him valued at, approximately, $9,964.00. The total of those sums of $22,394.00 fell well short of the sum of $170,000.00, referred to above.
(uu) On or about 27 August 2008, Ms D was the sole beneficial owner of the Suburb H property. Ms D claimed that there was then a mortgage on the Suburb H property which was in her sole name and that she had met all of the mortgage instalments and outgoings on the Suburb H property, substantially, paid for by way of income received from its rental. She maintained that she met any shortfalls from her salary from her employment.
(vv) During 2008, the wife maintained that she had provided the husband with $6,000.00 of her funds and had asked a friend of hers ("Mr TT") in China to lend him $30,000.00 to overcome issues associated with the then Global Financial Crisis.
(ww) In mid-2009, the husband asserted that he and the wife had terminated their marriage by agreement with no obligations to each other and with each being free to do things that they liked to do and that they had signed a document to evidence that, which he referred to as a "divorce agreement", being Exhibit "15". The husband maintained that the wife had drafted the divorce agreement. The Court accepts that it is likely that this document was drafted either by the husband or on his behalf. However, while the wife acknowledged signing the document, she disputed the date on it which, she believed, was not on the document when she signed it and that it was signed much later and, in that regard, reference is made to paragraph (iii) below. The Court accepts that the divorce agreement was not a binding financial agreement pursuant to the terms of the Act.
(xx) In mid-2009, the wife was granted permanent residency to live in Australia. The husband maintained that this grant fulfilled any obligation that he had to the wife which had been concluded in accordance with the divorce agreement, referred to in (ww), above. In around mid-2009, the husband and the wife were both making enquiries through "Mr UU" in relation to the wife's property in China including providing title deeds and her national ID card in China which were then given to Mr UU who provided them to "Mr VV" to be brought back to Australia (see Exhibit "6").
(yy) During 2009, the wife maintained that she had paid for Mr G to have selective school training and focused, herself, on tutoring him in mathematics.
(zz) On or about 13 September 2009, the husband effected a sale of the FF Street property to Ms WW for the sum of $680,000.00, in accordance with transfer registration number ..., with the proceeds of sale being applied to the maintenance of the estate of Ms E.
- (aaa) Between January and March 2010, the wife maintained that she had travelled back to China to care for the husband's father in City OO until he passed away. The wife maintained that, as the husband could not travel to China at that time, she had arranged for the husband's father's funeral and had arranged for his ashes to be scattered into the sea. The husband agreed that he had not attended the funeral but insisted that he and his friends had arranged for the funeral and that the wife had not even paid the funds to wash his father's body for the funeral. At that same time, the wife said she became aware that her apartment in China, being Property 2, China, had been demolished without notice to her with the certificate for the unit's ownership being cancelled by the Local Government. The Court accepts that, in 2010, the wife had emailed the husband advising him of a foreign currency current account held in her name (client number #...) with the QQ Bank of City NN (see Exhibit "5"). There was no evidence before the Court that this account was, currently, open or had any funds in it.
- (bbb) In 2010, the wife maintained that the husband had bought some 42- 43 animals which she had to look after and that this increased the amount of housework that she needed to do.
(ccc) In August 2010, the wife alleged that the husband had assaulted her causing injury to her face and teeth and that she had returned to China to have them fixed. The husband denied that he had done so. The Court accepts that, in around September 2010, the wife had gone to the City XX Court of City NN to consult with a Judge about an international divorce (see Exhibit "9"). She asked the husband to scan the marriage certificate and email it to her so that she could raise it with the Court there. Nothing, further, appears to have been done in China about that issue. The wife's position, however, was that she had forgiven the husband after he had apologised on many occasions and that this had not prevented her from making the positive contributions that she said she had made during the husband and the wife's relationship.
- (ddd) In January 2011, the City NN Real Estate Management Office issued a certificate described as "Real Estate Ownership Cancellation Certificate" in respect of Property 2, China, due to its demolition. This document, bearing a "red" seal, was produced by the wife in her written submissions.
- (eee) During 2011, the wife maintained that she had travelled to China for short trips to effect a "medical" preservation patent and to assist with issues arising from a fund set up by the husband's mother in China at the husband's request.
- (fff) In mid-2012, the wife maintained that a patent application, as referred to in (eee) above, was made. The patent being registered under the names of the wife, the husband and the friend, "Mr TT" (who had lent money to the husband, as referred to in (vv), above), as "invention persons" with the wife described as the "patentee".
- (ggg) During 2012, the wife also maintained that, when she was in Australia, she had painted the inside and outside of the Suburb H property, the DD Street property and the Suburb F property. The wife also maintained that she and the husband had completed the extension of 2 rooms at the Suburb F property and 2 rooms at the Suburb M property. She maintained that both had worked hard including in removing asbestos tiles, cleaning mouldy walls and corners and repairing access roads.
- (hhh) On or about 22 January 2013, the husband asserted that he and the wife had separated as set out in his divorce application filed in September 2018 (see Exhibits "Court 2" and "Court 3"). The wife maintained that, when she returned from the US, as referred to in (nnn), below, the husband had not told her that he had wanted to separate.
(iii) In early 2013, the wife travelled to the US to care for her mother who was then suffering from cancer. The wife's mother had travelled to the US to visit the wife's brother. The wife maintained that she had signed the document being Exhibit "15" on the basis that if she suffered an accident in the US and people came to seek property from her, then this document would prevent them from doing so and so as to enable her to travel to the US as the husband had refused to return her passport to her until she had done so. She also disputed the date of the document of May 2009 as having been on the document when she signed it and maintained that this date had been inserted by the husband after she had signed the document. The husband claimed that the wife was then seeking to obtain employment and some form of permanent residency in the US. The wife denied that claim and maintained that the visa that she had applied for and which was supported by her brother was for a short period and not permanent and that her trip had been funded by her brother. Both parties, however, appeared to accept that the wife's travel to the US was agreed between them, at the time. The husband contended that when the wife was unable to obtain a US visa she wrote to him suggesting that she come back to Australia and pay him rent to stay at the Suburb B property to fulfill her Australian Permanent Residency Visa requirements but that he had refused her request. This contention is somewhat inconsistent with the fact that the wife had already obtained her Australian permanent residency status, as set out in (xx), above.
- (jjj) In about early March 2013, the husband maintained that he had commenced a de-facto relationship with Ms C, born in 1989 (then aged 23 years), and had also supported her application for migration to Australia, as her partner. Both the husband and Ms C described their address in Australia as being the Suburb B property.
- (kkk) On or about 11 September 2013, the husband effected a sale of the DD Street property for the sum of $761,000.00 to Mr and Mrs YY, in accordance with a transfer (registered number ...), with the net proceeds of sale being applied to the maintenance of the estate of Ms E.
(lll) Between October 2013 and November 2013, the husband travelled to China (see Exhibit "L") to attend a medical college reunion. At that time, he made some efforts to investigate any compensation payable to the wife from the loss of her interest in Property 2, China.
- (mmm) In early 2014, the husband was the subject of a provisional ADVO where the protected person, described as Ms C, was also referred to as being in a de-facto relationship with the husband with them both then residing at the Suburb B property (see Exhibit "G").
- (nnn) In around March 2014, when the wife returned to Australia, she maintained that the husband would not let her stay with him but had not told her that he had wished to separate. Nevertheless, she obtained other accommodation as part of a "live in job" in Suburb ZZ. The wife maintained that the husband and the wife continued to communicate and that she would go with the husband and watch Mr G play soccer.
- (ooo) In 2014, the wife maintained that the husband had invited her to celebrate her birthday and had asked her to wait a "half year" because he had wanted to help a tenant/ girl get a permanent visa. The inference being that this tenant/girl was Ms C, as referred to in (jjj), above.
- (ppp) In mid-2014, the Intellectual Property Office of the People's Republic of China issued a certificate recording that date as the authorisation announcement date in respect of the patent referred to in (fff), above. This document, bearing a "red" seal, was produced by the wife in her written submissions.
- (qqq) On 13 January 2015, the wife received an email from the husband which included words to the following effect: - "...Don't step up confrontation. You have your sphere of living and I have my sphere of living ... we shall not live together, this is our mutual consent. Life is short. Don't waste time". The wife responded: - "Fine, one residential property, one car for me moving on the road". The Court accepts that this email exchange, at least, evidenced a separation date as of 13 January 2015. This is so, notwithstanding that the husband had disclosed on Ms C's application for migration (see Exhibit "L") that he was, in fact, in a de-facto relationship with her from 5 March 2013 and that he had separated from the wife on 16 September 2012 (in Exhibit "L") which was, again, inconsistent with his assertion that he had separated from her on 22 January 2013 (see Exhibit "Court 2") in his divorce application.
- (rrr) In 2015, the wife travelled back to China to be with her mother there until her mother's death in 2016.
- (sss) In 2016, the wife returned to Australia stating that she had then borrowed money from a "church brother", Mr AB ("Mr AB"), to purchase a second-hand car and had obtained employment with "AC Company". Mr AB is a close friend of Mr J.
- (ttt) In around September 2016, Ms D transferred the Suburb F property to herself and to Ms C in 50% shares as tenants in common, by way of a transfer (registered number ...). Ms D acknowledged in that document receiving the consideration of $407,500.00. The husband maintained that he was not involved, in any way, with this transfer.
- (uuu) On 16 September 2016, Ms D and Ms C borrowed $570,500.00 from Westpac pursuant to a mortgage dated 16 September 2016 (registered number ...) secured over the Suburb F property (see Exhibit "V").
(vvv) On 21 June 2018, the husband executed a transfer of the Suburb M property to Mr G, then aged 18 years, for the consideration of $700,000.00, the receipt of which the husband acknowledged. The transfer (registered number ...) was registered on the title to the Suburb M property on 26 June 2018 and, as and from that date, Mr G was the sole beneficial owner of the Suburb M property (see Exhibit "J").
- (www) At the time of the registration of the transfer referred to in (vvv), above, a mortgage (registered number ...) then registered on the title to the Suburb M property as at 16 November 2007 was discharged pursuant to a discharge of mortgage (registered number ...).
(xxx) On 21 June 2018, S Bank executed a mortgage document with Mr G securing a loan to him in the order of $403,389.87 (as at 30 June 2024 - see Exhibit "U") with this mortgage number ... registered on the title to the Suburb M property on 26 June 2018. Mr G claimed to have paid all of the mortgage instalments and the rates and outgoings with respect to the Suburb M property as and from his ownership.
- (yyy) On 7 December 2018, the wife commenced these proceedings.
- (zzz) In January 2019, Ms D and Ms C executed a transfer (registered number ...) which transferred the Suburb F property entirely to Ms C for the consideration of $487,500.00. Ms C is the sole registered proprietor of that property and she is described as a "family friend" to the husband and Ms D and Mr G. The husband, further, maintained that he was not involved in that transfer.
- (aaaa) On or about 21 January 2019, PP Company executed a mortgage (registered number ...) in favour of Ms C secured against the title to the Suburb F property which disclosed Ms C as the sole mortgagor.
- (bbbb) On or about 27 June 2019, the husband as the sole registered owner mortgaged the Suburb B property securing an advance of $1,250,000.00 from PP Company as mortgagee, in accordance with mortgage dated 27 June 2019 (registered number ...). The husband agreed that not all of the funds from that advance were used to pay off the monies then owed and secured against the title of the Suburb B property and that from the PEXA settlement the husband received funds, on 8 July 2019, in the order of $390,297.83 into his CBA account ending in #...01 (see Exhibit "O"). Out of that last account, there were then 10 debit transfers between 12 July 2019 and 16 August 2019 each in the sum of $20,000.00 to an account with "other bank" with the descriptors "pay back" or "pay back 2 Ms AP". These transfers totalled $200,000.00. The wife carried out a track on 2 of the $20,000.00 payments made on 7 August 2019 and 9 August 2019, which were both described as "payback 2 Ms AP" and the bank track identified that those payment were made to an account number ending #...68 in the name of Ms D (see Exhibit "S"). The husband stated that the transfers totalling $200,000.00 were "the return of money to friends" and confirmed that he had borrowed, roughly, $200,000.00.
(cccc) In mid-2019, the husband and the wife were divorced with such divorce order to taking effect from mid-2019 (see Exhibit "Court 1"). Accordingly, there is no issue that the wife's application for property orders was out of time or late.
- (dddd) On 16 September 2020, the Court made an injunctive order against the husband to the following effect: -
15. Upon the oral application of the [wife], pending further order or written agreement between the parties, and pending the [wife] putting on evidence about the proposed sale of the [Suburb B] property, the [husband] is injuncted from disposing of, selling or further encumbering the said property.
...
17.Leave to the [husband] to apply to vary suspend or discharge order 15 above, pending the material in orders 16 and 17 being filed and served, if there is some urgent need to vacate that order.
(iiii) Following the advance of monies under the mortgage referred to in (hhhh), above, Ms D received funds in the order of some $47,000.00. The Court notes that the advance of $1,250,000.00 less the monies due to AG Company of $1,199,746.60 amounted to $50,253.40. The husband was asked whether there were any funds left over after the payment to AG Company and his response was "No".
Third, whether making a property settlement order is "just and equitable" is not to be answered by beginning from the assumption that one or other party has the right to have the property of the parties divided between them or has the right to an interest in marital property which is fixed by reference to the various matters (including financial and other contributions) set out in s 79(4). The power to make a property settlement order must be exercised "in accordance with legal principles, including the principles which the Act itself lays down"[28]. To conclude that making an order is "just and equitable" only because of and by reference to various matters in s 79(4), without a separate consideration of s 79(2), would be to conflate the statutory requirements and ignore the principles laid down by the Act.
Section 79(4) of the Act [Matters to be taken into account]
a) the financial contribution made directly or indirectly by or on behalf of a party to the marriage or a child of the marriage to the acquisition, conservation or improvement of any of the property of the parties to the marriage or either of them, or otherwise in relation to any of that last-mentioned property, whether or not that last-mentioned property has, since the making of the contribution, ceased to be the property of the parties to the marriage or either of them; and > > b) the contribution (other than a financial contribution) made directly or indirectly by or on behalf of a party to the marriage or a child of the marriage to the acquisition, conservation or improvement of any of the property of the parties to the marriage or either of them, or otherwise in relation to any of that last-mentioned property, whether or not that last-mentioned property has, since the making of the contribution, ceased to be the property of the parties to the marriage or either of them; and > > c) the contribution made by a party to the marriage to the welfare of the family constituted by the parties to the marriage and any children of the marriage, including any contribution made in the capacity of homemaker or parent; and > > d) the effect of any proposed order upon the earning capacity of either party to the marriage; and > > e) the matters referred to in subsection 75(2) so far as they are relevant; and > > f) any other order made under this Act affecting a party to the marriage or a child of the marriage; and > > g) 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.
Section 75(2) of the Act [Matters]
a) the age and state of health of each of the parties;
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;
c) whether either party has the care or control of a child of the marriage who has not attained the age of 18 years;
d) commitments 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;
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 operates, within or outside Australia, and the rate of any such pension, allowance or benefit being paid to either party;
g) where the parties have separated or divorced, a standard of living that in all the circumstances is reasonable;
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;
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;
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;
l) the need to protect a party who wishes to continue that party's role as a parent;
m) if either party is cohabiting with another person, the financial circumstances relating to the cohabitation;
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;
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
o) any fact or circumstance which, in the opinion of the court, the justice of the case requires to be taken into account; and
p) the terms of any financial agreement that is binding on the parties.
q) the terms of any Part VIIIAB financial agreement that is binding on a party to the marriage.
a) Value the superannuation interest/s (according to the Regulations, if a splitting order is sought, or if no such order is sought, then according to the Regulations or otherwise). > > b) Identify and assess the contributions under s.79(4)(a),(b) & (c), ("the first limb - the contribution factors") of the parties and express them as a percentage of the superannuation interest/s (examined on either a global approach or an interest by interest approach, depending on the circumstances of the case); > > c) Identify and assess the other factors relevant under s.79(4)(d)(e),(f) & (g), ("the second limb - ongoing needs and effect of orders") including, because of s.79(4)(e), the matters referred to in s.75(2) and determine the adjustment (if any) to be made to the contribution entitlements at step two; and > > d) Consider the effect of the above and resolve what order is just and equitable (in relation to the parties' property and superannuation interests) in all the circumstances of the case.
a) The parties agreed; or
b) The superannuation interest itself fell within the definition of property contained in s.4(1) of the Act; or
c) If the interest did not fall within the definition of property, it was of small value when compared to the value of the items of property; or
d) There are features about the superannuation interest which make this appropriate.
WHAT WERE THE PARTIES' PROPERTY, LIABILITIES AND FINANCIAL RESOURCES AT THE TIME OF HEARING?
The Suburb B property (50% Share) (owned together with Ms D)
The Suburb F property (the wife maintained was valued at $1,100,000.00)
Bank deposit in the wife's bank account in Country AY
The husband's spend money of $400,000.00 from AG Company Financial then transferred half to Ms D up to 2019
The husband's spend money of $47,000.00 from the "illegal" remortgage with N Bank
Shares in SS Company which the husband maintained had been sold
Household Contents ($200.00) and Personal Effects ($500.00)
Husband's personal loan from unidentified friends
Husband's rent from sharing his residential property
$827.00 (W)
The same as Items 39 and 40 together (H)
(a) Item 1 and Item 26; the value of the Suburb B property, given its joint ownership as between the husband and Ms D and the value of the mortgage secured against its title;
(b) Item 2; whether the value of the Suburb M property should be included in the property pool or whether it should be excluded as an asset owned, exclusively, by Mr G;
(c) Item 3; whether the value of the Suburb H property should be included in the property pool or whether it should be excluded as an asset owned, exclusively, by Ms D;
(d) Item 5; whether this Item should be included in the Balance Sheet;
(e) Items 6 and 7; whether these Items should be included in the Balance Sheet;
(f) Items 8 and 9; whether these Items should be included in the Balance Sheet;
(g) Item 10; both parties agreed that the husband's shareholding in SS Company had a value of $8,459.00. The husband, however, in his oral evidence maintained that those shares had been sold on 17 March 2015 which, were shares belonging to the estate of his late wife and that, he no longer had any shares. He claimed that his shareholding would, therefore, be valued at $0.00;
(h) Items 21, 22, 23 and 24; whether these Items should be included as "addbacks" in the Balance Sheet;
(i) Item 25; whether this Item should be included in the Balance Sheet;
(j) Items 27, 28 and 29; whether these Items should be included as "addbacks" in the Balance Sheet;
(k) Items 31, 32, 33, 34 and 35; whether these Items should be included in the Balance Sheet; and
(l) Items 36 - 41; whether these Items should be included as a financial resource in the Balance Sheet.
(a) Item 1- The Court accepts that Ms D's interest in the Suburb B property was acquired by the husband effecting a transfer to her implementing the terms of Ms E's Will in that the beneficial interest so transferred did not belong to the husband and that the husband, accordingly, held a 50% beneficial interest in the Suburb B property which should, therefore, be valued in the Balance Sheet at $1,249,000.00. Similarly, at Item 26, the value of the husband's exposure under the mortgage over the Suburb B property should be reduced by 50% to $598,276.68.
(b) Item 2- The Court is of the view that the Suburb M property should not be included in the property pool. It is of this view given that the Court accepts that when the husband became the registered proprietor of that property, in his capacity as executor and trustee of the deceased estate of his late wife, Ms E and that when the property was transferred by the husband, entirely, to Mr G, that this was done to implement Mr G's beneficial entitlement under Ms E's Will following his obtaining 18 years of age and that, subsequently, he had mortgaged that property and has been, entirely, responsible for all of its outgoings and meeting the mortgage debt/ repayments secured on its title. The wife had little connection with the Suburb M property during the course of the husband's and the wife's relationship as it was, substantially, let out during that period of time. The wife may have assisted the husband in mowing lawns, cleaning mould and some minor repair/ renovation work to the property. There is no evidence before the Court as to the value of any such work impacting on the value of the property, itself. However, her work efforts there may be reflected in the balance of the property pool available for distribution as between the husband and the wife.
(c) Item 3- The Court is of the view that the Suburb H property should not be included in the property pool. It is of this view given that the Court accepts that when the husband became the registered proprietor of that property, he did so in his capacity as executor and trustee of the deceased estate of his late wife, Ms E, and that when the property was transferred by the husband, entirely, to Ms D, this was done to implement Ms D's beneficial entitlement under Ms E's Will following her obtaining 18 years of age and that, subsequently, she had mortgaged that property and had been, entirely, responsible for all of its outgoings and meeting the mortgage debt/ repayments secured on its title. The wife, similarly, had little connection with the Suburb H property during the course of the husband's and the wife's relationship as it was, substantially, let out during that period of time.
(d) Item 5- The Court notes from that Exhibit "13D", which was a printed contract with no evidence that the wife had signed the same, the seller as described therein had obtained approval to construct and sell commercial residential housing under a project with various construction and development permits granted. The husband produced as Exhibit "8" an email, dated 18 February 2009, from the wife to him which provided him with information about Property 1 which included contact details for the engineering department and gas tank delivery person. The husband also produced as Exhibit "7" an email from the wife, dated 5 August 2009, which referred to Property 1 and giving details of the director of the property management team and asking the husband to make enquiries about whether a "student living was payment"; that is, presumably, in relation to a student paying rent. There was no independent evidence before the Court that Property 1 was ever constructed. Exhibit "8" refers to a heading of "Demolition and Relocation". It should also be noted that the husband only provided a partial English translation of the Chinese language document in terms of the highlighted blue sections which form only a very small part of the whole document. In those circumstances, little weight can be given to what was so translated. There is no evidence by any valuer flowing from any physical inspection of the property including any specific inspection of Property 1. The wife has denied having any interest in Property 1. No title search has been produced which shows that she does. There is no other evidence to support the wife having such an interest and, in those circumstances, a $0.00 figure will be adopted, in that regard.
(e) Items 6 and 7- The Court is of the view that the wife's evidence should be accepted to the effect that she has no current bank accounts either in Country AY or in China. There was no independent evidence to the contrary. Accordingly, a $0.00 figure will be adopted, in that regard.
(f) Items 8 and 9 - The Court is of the view that these Items should be considered within the Balance Sheet in terms of addbacks. The question of what can and what cannot be legitimately "added back" notionally to the pool of available property was the subject of authoritative treatment by the Full Court of the Family Court of Australia in HDM & MM & SJM [2006] FamCA 47, where it was held that the following 3 clear categories applied to notional add-backs:
(i) Where the parties have expended monies on legal fees;
(ii) Where there has been a premature distribution of matrimonial property; and
(iii) In the circumstances outlined by Baker J in Kowaliw & Kowaliw [1981] FamCA 70; (1981) FLC 91-092.
In Kowaliw & Kowaliw [1981] FamCA 70; (1981) FLC 91-092, Baker J stated, at 76,644, the following:
As a statement of general principal, I am firmly of the view that financial losses incurred by parties or either of them in the course of a marriage whether such losses result from a joint or several liability, should be shared by them (although not necessarily equally) except in the following circumstances:-
(a) Where one of the parties has embarked up on a course of conduct designed to reduce or minimise the effected value or worth of matrimonial assets; or
(b) Where one of the parties has acted recklessly, negligently or wantonly with matrimonial assets, the overall effect of which has reduced or minimised their value.
However, the High Court of Australia's decision in Stanford & Stanford [2012] FamCAFC 1; (2012) 247 CLR 108 and the Full Court of the Family Court of Australia's subsequent decision in Bevan & Bevan [2013] FamCAFC 116; (2013) FLC 93-545, have cast some doubt on the practice of adding back items or monies into the property pool that no longer exist. However, regard must be had to exactly what was said in these decisions.
In Stanford & Stanford [2012] FamCAFC 1; (2012) 247 CLR 108, the High Court was not considering the legitimacy of add backs per se. However, in obiter, it was stated:
First, it is necessary to begin consideration of whether it is just and equitable to make a property settlement order by identifying, according to ordinary common law and equitable principles, the existing legal and equitable interests of the parties in the property. So much follows from the text of s 79(1)(a) itself, which refers to "altering the interests of the parties to the marriage in the property". The question posed by s 79(2) is thus whether, having regard to those existing interests, the court is satisfied that it is just and equitable to make a property settlement order.
In Bevan & Bevan [2013] FamCAFC 116; (2013) FLC 93-545 Bryant CJ and Thackray J, while also not specifically considering the legitimacy of add backs, in obiter, stated:
We observe that "notional property", which is sometimes "added back" to a list of assets to account for the unilateral disposal of assets, is unlikely to constitute "property of the parties to the marriage or either of them", and thus is not amenable to alteration under s 79. It is important to deal with such disposals carefully, recognising the assets no longer exist, but that the disposal of them forms part of the history of the marriage - and potentially an important part. As the question does not arise here, we need say nothing more on this topic, save to note that s 79(4) and in particular s 75(2)(o) gives ample scope to ensure a just and equitable outcome when dealing with the unilateral disposal of property.
In Vass & Vass [2015] FamCAFC 51, the Full Court of the Family Court of Australia, did consider the issue of add backs post Stanford and Bevan. Again this matter was not resolved decisively given the nature of the appeal before it but the following was stated by way of clarification:
There is no error committed per se in adjusting the parties' actual property interests by a calculation involving notionally adding back into the pool sums which have been dissipated by the parties. We reject any suggestion that the decision of Bevan & Bevan [2013] FamCAFC 116; (2013) FLC 93-545 - or, more particularly, the decision of the High Court in Stanford & Stanford [2012] FamCAFC 1; (2012) 247 CLR 108 - is authority for any necessary contrary solution. Some statements made by the High Court may lead to the conclusion that references to "notional property" as have been referred to in decisions of this court and at first instance may need to be reconsidered.
The decisions referred to seek to remind the Court that, however the exercise of discretion might seek to deal with property that is said to be the subject of "add back", proper consideration must be given to existing interests in property, and the question posed by s 79(2) as a separate inquiry from any adjustment to property interests by reference to s 79(4) if a consideration of s 79(2) reveals that it is just and equitable to alter existing interests in property.
The rationale for adding back property exists where the matrimonial property no longer subsists as a form of property. If the property continues to exist, there would be no occasion for an add-back: Townsend & Townsend [1994] FamCA 144; (1995) FLC 92-569; Chorn & Hopkins [2004] FamCA 633; (2004) FLC 93-204.
The Court accepts that, given the paucity of evidence provided by the husband in terms of his dealings with PP Company Trust in June 2019 when he obtained a mortgage securing an advance of $1,250,000.00 (see Exhibit "H") registered against the Suburb B property, that advance reduced the equity in the Suburb B property available for any distribution between the husband and the wife should be added back, as against him, in terms of the third limb for the consideration of addbacks, as referred to above, noting the dicta of the Full Court of the Family Court of Australia in Chorn & Hopkins [2004] FamCA 633; (2004) FLC 93-204, when it concluded that "the concept of adding monies reasonably disposed of back into the pool ought to be the exception rather than the rule". In that regard, there was no evidence provided by the husband to support the proposition that any of these monies had been utilised to meet his legitimate day to day living expenses. The Court will, accordingly, include by way of addback (at Item 24A of the Balance Sheet) the sum of $200,000.00 plus $100,015.00 of the $390,297.83 paid into the husband's CBA account ending #...01, as referred to below, as there was, simply, no evidence to support the husband's assertion that these monies were paid to friends in repayment of loans and those payments had reduced the husband's net property then available for distribution between the husband and the wife.
In relation to the sum of $47,000.00, at Item 9, obtained from the husband's and Ms D's refinance with N Bank, it would appear that this sum was paid to Ms D. In that regard, his latest Financial Statement filed on 3 February 2025 revealed that his weekly income of $827.00 was $472.00 less than his weekly expenditure. However, his weekly expenditure included the payment of mortgage instalments to N Bank of $1,108.00 per week. The evidence from Ms D was that N Bank had lent based only on her borrowing capacity in terms of her salary and that she had been, solely, meeting the ongoing liability to N Bank. In that regard, if one then excludes the weekly payment to N Bank from consideration in the husband's Financial Statement, his weekly expenditure drops to $191.00. His Financial Statement does not disclose any expenditure under the category of "all other expenditure" in Item 32, which would normally cover the incidentals of daily living including food, household supplies, motor vehicle expenses, entertainment and other expenses set out in Part N which the husband has simply deleted from the statement. Allowing the husband, approximately, $400.00 per week for such expenses, his income still exceeds expenses by some $336.00 per week.
Further, given the paucity of any evidence from the husband to explain why the refinance to N Bank needed to occur, particularly, at a time when there was an injunction restraining him from further encumbering the Suburb B property, the Court accepts that in assessing the reasonableness or, otherwise, of the husband's actions, this assessment weighs in favour of an addback at least to the sum of $47,000.00, as referred to in Item 24B of the Balance Sheet.
In that regard, the Court notes that Ms D had asserted that she had met the mortgage repayments to AG Company which were in the order of some $47,000.00- $50,000.00 and that this appeared to be a reimbursement of those instalments, previously, paid by her. In relation to the husband's receipt of some $398,000.00 from N Bank which related to excess funds provided by N Bank above the amount required to repay AG Company these funds went into his CBA account #...01 (see Exhibit "O") and were then drawn down by 10 instalments of $20,000.00 each one transferred to "other bank NetBank" without identifying the account number but with a reference on some of those payments to "payback 2 Ms AP", totalling $200,000.00, and a further transfer of $130,000.00 on 20 September 2019 to account #...70, but was then recredited in the sum of $120,019.76 on 26 November 2019 and then, on the same day, $100,015.00 was drawn out by way of a "branch" entry at the Suburb AR branch which the husband said, in his oral evidence, had been received in cash monies to repay unspecified third parties who had provided him with monies over time. It was put to Ms D that the account ending in #...01 was a joint account held by her with the husband. Ms D responded that this account was the husband's account and from the bank statement, that would appear to be the case. It was put to Ms D that she had received a lot of the transactions totalling $200,000.00. Ms D responded that she could not recall. The wife produced tracking records from CBA (see Exhibit "S") which identified that 2 of the $20,000.00 payments from the husband's account ending #...01 which, as said, were described as "payback 2 Ms AP" were, in fact, paid into an account number ending #...68 in the name of Ms D. The husband confirmed that Ms AP was Ms C. The inference being that all of the payments totalling $20,000.00 were, in fact, paid to Ms D, although the husband stated that he understood that there was a joint account between Ms C and Ms D, although the tracking records produced only described the owner of the account into which those transfers were paid as Ms D.
The Court also notes that the refinance from N Bank occurred in September 2021, following the injunctive order which restrained the husband from further encumbering the Suburb B property. The Court is of the view that the husband was well aware of that injunctive order and his assertion that the wife had not complied with an ongoing requirement for it to remain was not valid, noting that he had been given the opportunity to apply to vacate, suspend or discharge the injunctive order by filing appropriate material and he had not done so. That weighs against the husband.
Further, the Court is of the view that the documentation completed by the husband and Ms D in support of the refinancing application to N Bank (see Exhibit "Q") raised a number of serious concerns in terms of disclosure to that financer including, it would appear, that N Bank was not informed of the existence of the injunctive order made against the husband. In that regard, the Court also notes Ms D's evidence that she, herself, was unaware of the injunction. The documents in support of the loan application to N Bank were put to the husband and he was provided with a certificate under Section 128 of the Evidence Act 1995 (Cth) ("the Evidence Act"). In that regard, it would appear that N Bank was informed that the husband and Ms D were not living at the Suburb B property and that they were both living at an address, being AE Street, in Town AF and that a person who described herself as a cousin of the husband, being Ms AD, as referred to in 52 (eeee), above, had completed a Statutory Declaration that the husband and his family were residing with her and not paying rent. The husband, initially, said he did not know who she was but then, subsequently, said that she was a family friend but that he was not residing with her. The husband, initially, stated that the loan documentation was not his but was then taken by the Court to the execution page which provided, by way of his declaration, that the husband had disclosed his then current address as AE Street, Town AF, when he denied that he had signed the document. When he was taken to the second last page of the document, where it appeared, that his signature had been witnessed by a solicitor having identified the husband from the provision of the husband's drivers' licence with the number of that licence recorded by the solicitor, the husband was asked to produce his driver's licence and to read out the number which then corresponded with the same number recorded by the solicitor on the loan document to identify the husband. The husband had no recollection of the identity of the solicitor concerned, being Mr AS. Further, in the loan application documents the husband declared that he had not ever been bankrupt. Nevertheless, all of these documents were produced by N Bank in response to a subpoena and all of those documents grounded N Bank's approval to provide the loan funds to the husband and Ms D which the husband utilised, as referred to above. The effect of the refinance from N Bank was to provide the husband with available funds which he then utilised, in accordance with his evidence, to pay off friends who had advanced monies to him including Ms C (described as "Ms AP"). Further, the refinance had the effect of converting a 'home equity loan' to an 'investment loan'. The reduction in the principal debt which had occurred when financed by AG Company had been implemented, substantially, by Ms D and in that refinance, she was paid back monies, substantially, approximating the reduction in the principal debt.
(g) Item 10 -Dealing first with the husband's asserted sale of shares, on the husband's version, this occurred some 6 years after separation and related to shares (potentially, shares in SS Company) belonging to the estate of his late wife. The shares were not, initially, disclosed in the inventory recorded on the grant of Probate for her Will (see Exhibit "Court 5") but were, subsequently, added. The Court notes that the husband's Updated Financial Statement discloses dividend income of $7.00 per week and states that he still has in his investments at Item 38 in the Financial Statement some 2120 shares in SS Company then valued at $8,459.00. On the wife's version, if there had been a sale of shares they were sold on 17 March 2015 around separation. The husband does not provide any satisfactory evidence to support the sale of SS Company shares now referred to in his Financial Statement and, in those circumstances, the Court will include the agreed value of those shares in the husband's property in the Balance Sheet.
(h) Items 21, 22, 23 and 24- The Court is of the view that the wife's evidence should be accepted in that, while she agreed that she knew of these properties, none of them (save for Property 2, China) were ever owned by her. The Court notes that Exhibit "13D" did provide for the wife's disclosed address as being at Property 3. Her evidence was to the effect that these rooms were part of residential accommodation provided either by the hospital (where she was employed) or the schools where her stepfather was or had been employed as an educator. Some of the accommodation in those properties could be taken up by members of the family of staff who had been provided with such accommodation. However, she had no current entitlement to any such accommodation. In relation to Property 2, China, the Court is of the view that the wife's evidence should be accepted in that while she agreed that she had owned that property it appears that the property, itself, was the subject of some form of resumption by an authority, being part of the Chinese Government structure, and that while she may have been entitled to seek some compensation, her efforts to achieve any compensation have met with no success. Accordingly, $0.00 figures will be adopted, in that regard. Accordingly, these claimed addbacks in the sums sought by the husband are excluded from the Balance Sheet. Further, the Court notes that, in any event, there was, simply, no independent objective evidence in support of the husband's claimed values in respect of any of those properties.
(i) Item 25- The Court must determine whether the debt to Mr J exists. If the Court determines that it does, then it must still determine whether the debt should be taken into account either in calculating the pool (that is, it is a liability the burden of which the other party should bear) or as a s.75(2) matter (where the burden of a liability is to be solely borne): Merritt & Merritt [2009] FamCAFC 154 (Finn, May & Strickland JJ). The Court accepts the evidence of Mr J and that of the wife to the effect that there is a loan arrangement in place whereby the wife is indebted to Mr J now in the sum of $44,000.00, and not the sum in the range of $81,120.00 to $90,030.00 as claimed by the wife, as calculated from Exhibit "W", as referred to in paragraph 34, above, being the email and supporting documents received from the wife on 14 March 2025, following directions made for that to be provided on 13 March 2025.
The Court is of the view, however, that as this is a post-separation debt, it should be excluded from the Balance Sheet and considered in terms of section 75(2)(o) of the Act as a personal liability of the wife. The Court accepts that the wife has provided a number of Statutory Declarations as to the basis of her loan arrangement with Mr J and Mr J was cross-examined by the husband in terms of this arrangement. The Court accepts the evidence of Mr J that he provided such funds and, further, accepts the evidence of the wife that those funds have been, substantially, expended by her in legal fees when represented and in meeting her living expenses. The wife's schedule referred to within Exhibit "W" records the receipt of funds from Mr J and the repayment of some of those monies advanced. In that regard, while she appears to have borrowed in the order of some $110,000.00, she had effected repayments and currently "owes" Mr J in the order of some $44,000.00.
(j) Items 27, 28 and 29; The Court is of the view that these asserted loans should be excluded from the Balance Sheet. There was no independent evidence in support of the husband's liability in respect of Item 29, given that he did not identify any specific individual said to have provided such loan funds. Further, while the husband claimed that he owed $272,000.00 in Item 28, during the course of his evidence, he agreed that he had paid back this sum from the borrowings which he had secured against the Suburb B property. In that regard, in June 2019, the husband as the sole registered owner of the Suburb B property obtained a mortgage from AG Company securing a loan for the sum of about $1,250,000.00 of which about $1,000,000.00 was used to pay out the mortgage then on the property securing a loan in the order of $1,000,000.00, leaving a balance of about $250,000.00. The Court asked the husband what he did with that balance sum and he responded that he had "gradually paid back the people that lent money to him". In terms of Item 27, while a person was identified as a lender, being Ms AT, who the husband confirmed was his niece, this asserted loan was said to have arisen in 2015 prior to the commencement of proceedings and had never been referred to by the husband in his affidavit material or in his prior financial statement filed on 19 March 2019, as set out in paragraph 40(b), above. The husband stated that he had received monies from "_so many friend_s" but no one had asked for interest and that he had returned their monies and that was why he never paid interest. The Court is of the view that there is insufficient evidence to support any of the husband's asserted liabilities in Items 27, 28 and 29 and that, in those circumstances, there is no need to consider the same, in terms of future needs, under s 75(2)(o) of the Act.
(k) Items 31, 32, 33, 34 and 35- The Court is of the view that Item 32 appears to be the same as Item 30 as there is no evidence to support the wife having any other superannuation in Australia, other than Super Fund 1, at Item 30. Further, there is no evidence to support the wife having any other pension entitlements in China and, accordingly, Items 31, 33 and 34 are excluded from the Balance Sheet. Further, there is no evidence to support the husband's assessment of a value of $865,795.00 at Item 31 or the value of $116,279.00 at Item 34. Similarly, there was no evidence to support the wife's assertion that the husband has superannuation either in Australia or China. Accordingly, Item 35 is excluded from the Balance Sheet.
(l) Items 36 - 41- The Court is of the view that these Items should all be excluded from the Balance Sheet. Item 37 relates to the wife's receipt of a Centrelink pension allowance. Items 39 and 40 relates to the husband's receipt of an Aged Pension and rent from sharing his residential property. These 2 Items appear to have been included within Item 41 of the Balance Sheet. These are considered in terms of the parties' ongoing incomes referred to in section 75(2) of the Act, as set out below. There is no evidence of the wife being in receipt of any annual superannuation payment as set out in Item 38 of the Balance Sheet. Further, as there was no evidence that either party still had any property in China, there was no evidence to support any assertion that they were in receipt of any rental incomes from such properties. During the husband's cross-examination by the wife, he was asked questions about a property in China which had not been disclosed on the parties' Balance Sheet. This property appeared to be his former family home owned by his father and mother who had both passed away and was now owned, entirely, by his sister. The wife produced no evidence to the contrary.
The Suburb B property (50% Share) (owned together with Ms D of the property valued at $2,498,000.00 reduced by 50% to reflect the husband's interest)
Bank deposit in the wife's bank account in Country AY
The husband's spend money of $400,000.00 from AG Company then transferred half to Ms D up to 2019
The husband's spend money of $47,000.00 from "illegal" remortgage with N Bank
SS Company Shares which the husband maintained had been sold
Mortgage over the Suburb B property $1,196,553.35 reduced by 50% to reflect the husband's interest
Husband's personal loan from unidentified friends
Total Net Property (including addbacks) Plus Superannuation
Aged pension: $470.00/week in the Husband's Case Outline document or $520.00/ week in his Updated Financial Statement
Husband's rent from sharing his residential property ($300.00/week)
WHAT WERE THE PARTIES' FINANCIAL (DIRECT AND INDIRECT) AND NON-FINANCIAL (DIRECT AND INDIRECT) CONTRIBUTIONS?
It is therefore necessary...[to] weigh and assess the contributions of all kinds and from all sources made by each of the parties throughout the period of their cohabitation and then translate such assessment into a percentage of the overall property of the parties.
In the absence of evidence to the contrary, it should be inferred in proceedings pursuant to... s.79 [of the Act] that monies howsoever received by a party during the course of the parties cohabitation are used by that party for the benefit of the family unit [and] ....thus constitute a financial contribution by the party who received the monies.
DIRECT AND IN-DIRECT FINANCIAL AND NON-FINANCIAL CONTRIBUTIONS
In our opinion it is not so much a matter of erosion of contribution but a question of what weight is to be attached, in all the circumstances, to the initial contribution. It is necessary to weigh the initial contributions by a party with all other relevant contributions of both the husband and the wife. In considering the weight to be attached to the initial contribution, in this case of the husband, regard must be had to the use made by the parties of that contribution. In the present case that use was a substantial contribution to the purchase of the matrimonial home.
Although in this discussion reference is made exclusively to domestic violence, it is not intended to be confined to that issue. We do not consider that domestic violence is an exclusive category. It is the most obvious example of a wider and more general category of conduct which may be relevant within s 79...
Put shortly, our view is that where there is a course of violent conduct by one party towards the other during the marriage which is demonstrated to have had a significant adverse impact upon that party's contributions to the marriage, or, put the other way, to have made his or her contributions significantly more arduous than they ought to have been, that is a fact which a trial judge is entitled to take into account in assessing the parties' respective contributions within s 79. We prefer this approach to the concept of ''negative contributions'' which is sometimes referred to in this discussion...
...it would be necessary to show that the conduct occurred during the course of the marriage and had a discernible impact upon the contributions of the other party. It is not directed to conduct which does not have that effect and of necessity it does not encompass (as in Ferguson) conduct related to the breakdown of the marriage (basically because it would not have had a sufficient duration for this impact to be relevant to contributions).
"The central question raised by this appeal is how a judge takes into account the contributions of one party, found to have been made significantly more arduous by the conduct of the other, when assessing contributions under ss 79(4)(a)-(c) or
ss 90SM(4)(a)-(c) of the Act. The answer is the primary judge must take a holistic approach. The contributions which have been made significantly more arduous have to be weighed along with all other contributions by each of the parties, whether financial or non-financial, direct or indirect to the acquisition, conservation and improvement of property and in the role of homemaker and parent. All contributions must be weighed collectively and so it is an error to segment or compartmentalise the various contributions and weigh one against the remainder."
(Citations omitted)
WHAT WERE THE PARTIES' CONTRIBUTIONS TO THE WELFARE OF THE FAMILY, INCLUDING THOSE IN THE CAPACITY OF HOMEMAKER OR PARENT?
WHAT IS THE EFFECT, IF ANY, OF ANY PROPOSED ORDER UPON THE PARTIES' EARNING CAPACITY?
a) the age and state of health of each of the parties;
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;
c) whether either party has the care or control of a child of the marriage who has not attained the age of 18 years;
d) commitments 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;
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 operates, within or outside Australia, and the rate of any such pension, allowance or benefit being paid to either party;
g) where the parties have separated or divorced, a standard of living that in all the circumstances is reasonable;
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;
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;
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;
l) the need to protect a party who wishes to continue that party's role as a parent;
m) if either party is cohabiting with another person, the financial circumstances relating to the cohabitation;
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;
n) the terms of any order made or proposed to be made under section 79 in relation to: the property of the parties; or vested bankruptcy property in relation to a bankrupt party;
naa) the terms of any order or declaration made, or proposed to be made, under Part VIIIAB in relation to: a party to the marriage; or a person who is a party to a de facto relationship with a party to the marriage; or the property of a person covered by subparagraph (i) and of a person covered by subparagraph (ii), or of either of them; or vested bankruptcy property in relation to a person covered by subparagraph (i) or (ii);
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;
o) any fact or circumstance which, in the opinion of the court, the justice of the case requires to be taken into account;
p) the terms of any financial agreement that is binding on the parties;
q) the terms of any Part VIIIAB financial agreement that is binding on a party to the marriage;
The wording of section 79(1), itself, in my opinion clearly limits the application of the Court's power to property existing at the time of the hearing.
In my opinion, section 79(1) does not give the Court a power to order a settlement out of property which does not exist and could only be brought into existence by the exercise of an alleged borrowing capacity.
The Court shall not make an order under this section unless it is satisfied that, in all the circumstances, it is just and equitable to make the order.
Whilst it may, as a matter of individual circumstance, be correct to say that the mere existence of disparity of wealth ought not of itself justify a settlement of property to one party at the expense of the other, it may often, in the overall circumstances of a case, call for further adjustment beyond that assessed on contributions alone, so that the final order is just and equitable...
Plus payment from the husband ("the Settlement Sum")
Less payment to the wife of the Settlement Sum
Mortgage over the Suburb B property (husband's share)
I certify that the preceding two hundred and eighteen (218) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Kemp.
Mallett & Mallett [1984] HCA 21; (1984) FLC 91-507
Norbis & Norbis [1986] HCA 17; (1986) 161 CLR 513
Stanford & Stanford [2012] HCA 52
(1986) 161 CLR 513
(2012) 247 CLR 108