Bernard and Bernard and Anor

In the matter of *Bernard and Bernard and Anor*, heard by Judge Terry, the primary dispute concerned the division of property between a husband and wife. While the parties had reached an agreement regarding the overall asset pool, significant disagreements persisted concerning the assessment of contributions and the application of section 75(2) of the *Family Law Act 1975* (Cth). A central issue was whether the wife should receive a favourable adjustment due to the financial consequences of a company controlled by the husband, which failed after separation and was subsequently liquidated. The liquidators of this company claimed certain equipment, disposed of by the parties post-liquidation, belonged to the company, and sought the proceeds from its sale. The husband and wife contended the equipment was owned by a separate company that habitually hired it to the first company. Alternatively, the liquidators argued that if the equipment belonged to the second company, it became their property upon the first company's liquidation due to the second company's lack of a registered security interest under the *Personal Property Securities Act 2009* (Cth), given the equipment's possession by the first company at the time of liquidation.

The court was required to determine the ownership of the disputed equipment and the funds held in trust from its sale, considering the claims of the liquidators against the claims of the husband and wife. Furthermore, the court needed to assess the financial contributions of each party and consider any relevant section 75(2) factors, particularly the financial impact of the failed company on the parties' respective positions. The application of the *Personal Property Securities Act 2009* (Cth) in relation to the equipment's ownership and the liquidators' claims was a key legal question.

The court's reasoning, as reflected in the orders, indicates a resolution of the property division and the claims concerning the company and its assets. The orders detail specific financial transfers and property adjustments between the parties. The wife is to pay a sum to the husband and refinance a loan secured over a property, after which the husband will transfer his interest in that property to her. Provisions are made for the sale of the property if the wife fails to comply with these initial orders, with a specific distribution of sale proceeds. The husband is declared the exclusive owner of a specified amount held in a trust account, with any excess to be divided between the parties. Each party is otherwise declared the owner of assets and superannuation in their possession. The Registrar of the Federal Circuit Court of Australia is appointed to execute documents if a party fails to do so. The application of the Second Respondent was dismissed.