BAZZI-CIRINO & CIRINO

In the matter of Bazzi-Cirino & Cirino, Rees J considered a property settlement dispute between a husband and wife following a ten-year cohabitation and marriage with two children. The primary dispute concerned the division of marital assets and liabilities, including the treatment of legal fees incurred by the parties.

The court was required to determine the appropriate percentage division of the parties' contributions to the marriage, considering both financial contributions and contributions to the care of the children, particularly post-separation. Furthermore, the court had to decide whether the husband's request to "add back" the legal fees paid by both parties, and related liabilities, into the asset pool for division was warranted.

Rees J found that the wife's contributions, both financially and in caring for the children post-separation, were greater than the husband's. Consequently, the court attributed 60 per cent of the contributions to the wife and 30 per cent to the husband. An additional 5 per cent adjustment was made in favour of the wife under section 75(2) of the Family Law Act 1975 (Cth) due to factors such as the children remaining in her care. Regarding the legal fees, the court determined that the wife's expenditure from her post-separation income, generated by her professional practice, was not to be added back to the asset pool. This was because the income was not referable to the parties' joint efforts during the marriage, and the husband was not a co-owner or operator of the practice. However, these legal fees and related liabilities were taken into account under section 75(2).

The court ordered that the wife pay the husband $163,000 within three months, simultaneously transferring the L property to the wife. The wife was to be solely responsible for all outgoings related to the L property and was to indemnify the husband. If the payment was not made by the due date, the L property was to be sold, with proceeds applied first to discharge the mortgage and costs of sale, then to pay the husband the $163,000 plus interest, and any balance to the wife. The D property was to be transferred to the husband, who would be solely responsible for its outgoings and indemnify the wife. The parties were also to divide certain household contents, with each party retaining other property in their possession and being responsible for liabilities not otherwise provided for.