Badenoch & Faldyn (No 2)

In the case of Badenoch & Faldyn (No 2), the Federal Circuit and Family Court of Australia was tasked with resolving disputes concerning the division of property and ongoing parenting issues between the parties. The matter involved Ms Badenoch and Mr Faldyn, who were married but now separated, as well as Mr Faldyn’s Trustee in Bankruptcy and an Independent Children's Lawyer appointed to represent the interests of their child. The court was required to decide on the distribution of the proceeds from the sale of a matrimonial property and to make interim orders regarding the ongoing parenting arrangements.

The legal issues before the court included determining the appropriate division of the proceeds from the sale of the matrimonial home, where one of the parties was an undischarged bankrupt. Additionally, the court had to address the ongoing parenting arrangements for the child born in 2010, including the appointment of a Single Expert for the child’s assessment and the progress of one parent’s application for legal aid under the Cross Examination Ban Scheme. The court also needed to consider the indemnity obligations of one party to the other and the Trustee in Bankruptcy regarding financial contributions made by a company towards the acquisition, conservation, or improvement of the matrimonial property.

The court determined that the parties had reached a settlement regarding the division of the property proceeds, which was documented in consent orders. The orders specified that the remaining proceeds from the sale of the property were to be disbursed, with a portion going to the Trustee in Bankruptcy and the balance split equally between the applicant and the second respondent. The court noted that the Trustee in Bankruptcy did not seek a stay of the proceedings and joined in the request for the orders. The court also made interim orders regarding the parenting arrangements, including the appointment of a Single Expert for the child’s assessment and the requirement for the Independent Children’s Lawyer to report on the progress of one parent’s application for legal aid. The court excused the Trustee in Bankruptcy and the second respondent from further attendance in the financial aspect of the proceedings.

The final orders included the approval of the consent orders for the division of property proceeds, the adjournment of the parenting proceedings, and the requirement for the Independent Children's Lawyer to file curricula vitarum of the proposed Single Experts and report on the progress of the application for legal aid. The court also ordered that there be no order as to costs for the financial aspect of the proceedings.