Asif and Ajnun

The Family Court of Australia, in the matter of Asif & Ajnun, heard interim applications concerning a property at 1 B Street, Suburb C, and a business known as D Pty Ltd, which was the alter ego of the parties. The wife was the registered proprietor of the property, and the parties were awaiting a final hearing for the alteration of their property interests. The dispute centred on how these assets should be dealt with on an interim basis, particularly whether the business should be sold together with the property.

The court was required to determine the terms of interim orders for the sale of the property and the business. Specifically, the court needed to decide whether to grant the wife's application for a lease of the property to D Pty Ltd, the terms of sale for the property and business, including the reserve price and acceptance of offers, and the order of priority for the distribution of sale proceeds. A key legal issue was whether selling the property and the business together ("in one line") would maximise the overall selling price and the pool of potential buyers, as contended by the husband, or if the wife's proposed lease arrangement would yield a greater value.

Justice Watts applied principles of family law concerning the interim management of matrimonial assets, aiming to preserve value and facilitate a sale given the urgent need to address significant mortgage liabilities. The court considered expert valuation evidence and submissions from both parties. It was found that the wife's proposed lease term was too short to support the valuation of the business interest as argued, and that selling the property and business together was likely to increase marketability, despite the lack of precise evidence on the extent of this increase. The court also noted the wife's substantial personal debt and the lack of evidence supporting her ability to refinance the business.

The court ordered that the property at 1 B Street, Suburb C, and the business D Pty Ltd be listed for sale contemporaneously, either by auction or private treaty, with a reserve price of $1,000,000. The parties were to accept the highest offer made at auction or prior to auction within 10 percent of the reserve price. The wife's solicitors were instructed to act on the sale, with the husband's solicitor to be kept informed. The proceeds of sale were to be applied first to sale costs and outstanding rates, then to pay off the mortgage to Perpetual Trustee Company Limited, the loan secured by ASK Funding Limited, and up to $50,000 for the D Pty Ltd overdraft with ANZ Bank. The remaining balance was to be held in a controlled monies account pending further order.