austlii:cth/FedCFamC1F/2026/85
General information, not legal advice.
FedCFamC1F
2026-02-16
Schonell J
Original judgment source is linked above.
Counsel for the Second, Third, Fourth and Fifth Respondents:
Solicitor for the Second, Third, Fourth and Fifth Respondents:
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
C PTY LTD ACN [...] (and others named in the Schedule)
(a) the amount of $156,000, being the balance of the amount of $160,000 as required by the orders made on 7 November 2025; and
(b) interest from 28 November 2025 to the date of actual payment by the first respondent.
(a) within 3 days, the applicant is to provide to the first respondent a list of 3 conveyancing solicitors and a list of 3 registered real estate agents;
(b) within a further 3 days, the first respondent is to select one of the conveyancing solicitors ("Nominated Vendor Solicitor") and one of the real estate agents ("Nominated Agent") from the lists provided by the applicant;
(c) in default of 2(b) above, the applicant shall select one of the conveyancing solicitors ("Nominated Vendor Solicitor") and one of the real estate agents ("Nominated Agent") from the list provided to the first respondent;
(d) in the event the parties are unable to reach agreement on the terms and conditions of the contract for the sale of the Suburb G Property within 7 days, the parties agree to be bound by the decision of the Nominated Vendor Solicitor who shall determine the disputed terms;
(e) the parties shall instruct the Nominated Vendor Solicitor and the Nominated Agent to prepare contracts for, and hold, an open auction for the sale of the Suburb G Property on or before 42 days from the date of these orders, on terms which provide for completion of the sale no later than 6 months from the date of these orders;
(f) the parties shall agree on the marketing, reserve price, and other particulars of the sale of the Suburb G Property and in the absence of agreement shall follow the advice provided in writing by the Nominated Vendor Solicitor in respect of the terms of the contract for sale and the advice provided in writing by the Nominated Agent in respect of marketing, reserve price, and other particulars of the sale; and
(g) in the event the Suburb G Property does not sell at auction as a result of bids not reaching the reserve, the parties shall follow the advice of the Nominated Agent to achieve a sale of the Suburb G Property on the same day of the date of the auction at the best available price and on the best available terms (in the reasonable opinion of the Nominated Agent).
6. The question of costs is to be determined on the papers and in chambers.
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 Reynders & Travere (No 3) has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
37 In her affidavit filed 2 July 2025 she asserts the following:
- During our marriage, the husband and I transferred more than AUD $20 million from China into Australia. These transfers took place over a span of several years and were facilitated through a complex network of remitters and intermediaries, as direct international fund transfers were subject to restrictions under Chinese foreign exchange laws. I was actively involved in the transfer process and have direct knowledge of how these transactions were carried out. Specifically, I was the one who contacted the remitters in China, communicated with them via WeChat, and provided them with the necessary instructions on how much to remit, to which Australian account, and under whose name. I also followed up regularly to confirm whether each remittance had been processed and provided the relevant banking details and references for each transaction. From round 6 August 2022, under the husband's instructions, [Ms Hettie] began communicating directly with the currency exchange agents. However, I also followed up from time to time.
- In many instances, the remitters would divide large sums into multiple smaller transactions to avoid detection or regulatory scrutiny. I would coordinate the timing of these transactions, keep track of the amounts, and ensure that the funds arrived in Australia in accordance with the husband's directions. I have retained WeChat records of these communications, which include conversations with remitters, confirmations of transfers, and screenshots of payment receipts. As such, I have first-hand knowledge of the remittance process and the individuals involved in facilitating these transfers on behalf of the husband.
- I am also aware that the source of most of those fund are the net sale proceeds of ...properties registered under the husband's name in China...
- The husband transferred the sale proceeds of the properties...to various individuals, including but not limited to his third wife, [Ms HETTIE], [Mr MM], and [Ms NN]. These individuals acted as informal conduits or remittance agents, receiving funds originating from the husband and subsequently transferring them to Australia. This arrangement appears to have been structured to break down large sums into smaller, less traceable transactions.
...
I have financial records reveals that between April 2021 and February 2025, at least 215 separate transactions were made into Australian bank accounts controlled by the husband and myself. These included accounts held with the Commonwealth Bank, Westpac, ANZ, and accounts of [C Pty Ltd]:
Based on the loan agreements provided by the husband, it appears that on 30 August 2023 and 20 February 2024, sums of AUD $2 million were transferred on each occasion through [Ms Hettie], totalling AUD $4 million. I was not involved in the transfer of these funds. Many of these payments coming into Australian accounts listed in No. 36 above were disguised as business payments or personal remittances and often referenced multiple unrelated names. Some payments were made using money exchange services that allowed the conversion of [Currency OO] into Australian Dollars without formal banking channels.
The aggregate total of these banked Australian Dollar funds exceeded AUD $20,832,402, with approximately AUD $18,554,803.00 identified as having been deposited into personal accounts held directly under the husband's name (including under his English name, [Mr Travere]), based on the bank statements and transaction descriptions.
The remaining balance was deposited into my account or [C Pty Ltd's] company account, then used to purchase real estate in Australia in cash, without any borrowings at the time of purchase. These acquisitions were subsequently leveraged by the husband, through mortgages or other encumbrances, for his personal financial benefit or to effect asset transfers.
...
To the best of my knowledge, all the properties were originally purchased unencumbered using a total of $20,832,402.00, which the husband transferred from China to Australia through various senders. Subsequently, the husband mortgaged these properties to third-party financiers in order to draw down on the equity. I do not know where the proceeds from these equity withdrawals have been retained or how they have been applied.
...
[Ms HETTIE] is the husband's third wife. According to the husband, they divorced in or around early 2016. At the time of their divorce, the husband transferred a property to her and agreed to pay her [Currency OO] 1 million, allegedly at a rate of [Currency OO] 100,000 per year-although only approximately [Currency OO] 500,000 was paid. The remaining [Currency OO] 500,000 was given to [Ms Hettie] as a discount on the purchase of a property developed by the husband. Despite their divorce, she has remained financially dependent on the husband. He continued to pay her a monthly salary of [Currency OO] 10,000 through a company under his control, even though she performed only domestic duties such as child transportation and housework.
During our marriage, the husband repeatedly informed me that [Ms HETTIE] was merely a figurehead or nominee used for the purpose of holding and managing his assets and financial affairs. He made it clear to me on numerous occasions that although certain properties, funds, or business interests appeared to be in [Ms HETTIE'S] name, she had no real ownership or control over them. According to the husband, [Ms HETTIE] was acting at his direction and solely for his benefit. He stated that this arrangement was necessary to minimise exposure to legal or financial risk, both in China and in Australia, and to facilitate the transfer of funds internationally. I was led to believe that [Ms HETTIE] was not involved in decision-making regarding these assets and that she was not entitled to any beneficial interest in them.
The contentions advanced by the wife are denied by the husband and the second respondent. They each contend that the transactions entered into between them were as a consequence of the repayment of various sums of monies owed by the husband to the second respondent or in accordance with the provisions of a Divorce agreement made in 2016.
...
- The wife contends that the husband exercises control over assets in the second respondent's name and that consequentially he has failed to disclose his true wealth.
- In relation to his current financial position, his Financial Statement identifies the second respondent meets his ordinary living expenses of $1,935 per week. His Financial Statement fails to disclose how he meets his stated outgoings of $7,607 per week.
- He states he has borrowed from the second respondent monies referred to at Item 50 of the Financial Statement but elects not to disclose how much. The note to item 50 is equally opaque asserting the following:
The loans referred to in this Item also include the monies I have borrowed from [Ms Hettie] for the repayment of the mortgages over the properties located at [Suburb G] and [Suburb R]. I continue to repay these mortgages using monies lent to me by [Ms Hettie].
- He fails to identify how much it is that he has actually borrowed from her. He also identifies a personal liability to the second respondent being a personal loan for the payment of his legal costs in the proceedings said to total $250,000. The husband has also filed two affidavits but does not provide any explanation as to the quantum of monies that he has borrowed from the second respondent, despite now three opportunities to do so.
- The Costs Notice filed by the husband dated 3 November 2025 discloses his solicitors hold $184,372 in trust. The Costs Notice fails to comply with the Rules in that it fails to disclose how he will meet his estimated future costs of $543,000. An earlier Costs Notice disclosed he held $237,913 in trust. Both memorandums fail to explain where the reduction in funds has gone. The husband also holds approximately $40,00 in his bank accounts. The husband thus has funds at his disposal exceeding $224,000.
- I am satisfied that the second respondent represents a financial resource of the husband. She has not suggested at any time that she will not continue to fund the husband. What actually is the true nature of their financial relationship is a matter for a final hearing.
- I am satisfied that the husband has failed to comply with his obligations of disclosure. I am satisfied he has the capacity to meet the order sought by the wife in proposed order 7 and that the making of such an order is proper pursuant to s 114 of the Act for the purposes of preserving the equity in the home.
- The wife seeks a payment totalling $509,410 by way of either partial property settlement or interim costs. The sum sought by the wife accords with the affidavit of her solicitor and is for the wife's costs for the purposes of the proceedings. There was no challenge to the evidence of the estimate.
...
- I am satisfied that the husband has the capacity to meet a payment to the wife but am not satisfied at this stage that it is just to order a sum in the magnitude sought by the wife.
- I am satisfied that a just sum to meet the wife's costs at this stage is represented by a payment of $160,000. I am satisfied for the reasons given above that the husband has the capacity to meet such a sum. Such an order does not prevent the wife from seeking a further order by way of lump sum or on a dollar-for-dollar basis.
13. Below is an excerpt of the Transcript from page 73 between lines 12 to 31:
HIS HONOUR: Thank you. Just before you sit down, Mr Lawrence, your client's costs notice identifies that there is $184,000 held in trust.
MR LAWRANCE: Yes.
HIS HONOUR: That would be a source of funds about which I could make an order, isn't it? It's his money.
MR LAWRANCE: Yes, your Honour is, with respect, correct. It's his money. It may have been - the evidence is that it's money that has been lent to him by [Ms Hettie], therefore it's his money sitting in his solicitor's trust account. Your Honour might take into account that it has been advanced to him for a particular purpose by [Ms Hettie]. But - - -
HIS HONOUR: Is there a loan agreement that identifies any of this?
MR LAWRANCE: There's no documented loan agreement. There is only the evidence in the affidavit and the financial statement as to the purpose for which the moneys were advanced. But the question your Honour asked me was, is it his money? And the answer to your Honour's question is, yes, it is.
HIS HONOUR: Thank you. Right. Thank you, Mr Lawrance. Mr Fermanis.
Subject to this part, to the regulations, and to the applicable rules of court and all decrees made under this Act may be enforced by any court having jurisdiction under this Act.
(a) The nature of the power to enforce is discretionary as evidenced by the use of the term "may" in s 105 of the Act; > > (b) Only the facts or circumstances arising since the date of order sought to be enforced will inform the discretion to be exercised pursuant to s 105 of the Act; > > (c) The Court may refuse to enforce an order if it would be "inequitable" to do so; > > (d) When considering whether or not it would be inequitable to enforce the order, the Court is primarily concerned with "general notions of fairness"; > > (e) The party submitting that it would be inequitable to enforce the order bears the onus of so establishing;
(f) Delay in bringing an application for enforcement is a relevant factor.
...
- Within 14 days of the date of these Orders, the Second Respondent, [Ms Hettie], is to file and serve an affidavit setting out the full circumstances of the purported Deed of Loan dated 1 March 2024 between [Ms Hettie], the husband, and [D Pty Ltd], including but not limited to:
a. the source of the funds;
b. all transfer records; and
c. all relevant bank statements.
... faced with the party whose affairs were tangled and who did not give the assistance within his power to disentangle them the trial Judge in my opinion was well entitled to simply take the view that it lies upon that party to devise means to comply with the order. If the burden is impossible, he cannot complain as he is the author of his own misfortune.
...
- A failure to disclose in financial proceedings in this Court may lead to unfavourable inferences against the defaulting party very similar to the adverse inferences which may be drawn in accordance with the Blatch v Archer principle discussed above, in the sense of having the effect of discounting the evidence of the non-disclosing party. They are separate bases which can lead to the same or similar result.
I certify that the preceding forty-two (42) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Schonell.
(2023) 67 Fam LR 421