Caldwell & Caldwell

Case [2025] FedCFamC1F 506


FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
FIRST INSTANCE

Caldwell & Caldwell [2025] FedCFamC1F 506

File number: BRC 2242 of 2024
Judgment of: CAREW J
Date of judgment: 30 July 2025
Catchwords: FAMILY LAW – PROPERTY – TRUSTS – PROPER PURPOSE RULE – Declaration sought – Whether declaration necessary – Where a determination is sought that trusts and/or trust assets are property of the marriage or either of them within the meaning of the Family Law Act 1975 (Cth) – Where it is determined that the trusts are not a sham or alter ego of the husband – Where the wife is an excluded beneficiary of the trusts – Where the assets of the trusts do not represent labours or contributions of either party –Where the husband and wife have accumulated significant wealth outside the trusts from which a just and equitable settlement may be achieved – Where it is conceded that the trusts’ assets are a financial resource of the husband for the purposes of s 79 – Where it is decided that the trusts and/or trust assets are not property within the meaning of s 79.
Legislation:

Corporations Act 2001 (Cth) ss 224, 229, 232

Family Law Act 1975 (Cth) ss 4, 78, 79, 90AE, 106B, 114

Federal Circuit and Family Court of Australia Act 2021 (Cth) ss 9, 25(1), 44, 141

Federal Court of Australia Act 1976 (Cth) s 23

Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth) rr 1.05, 10.10, 10.11

Cases cited:

Accurate Financial v Koko Black (2008) 66 ACSR 325

Ainsworth v Criminal Justice Commission (1992) 175 CLR 564

Ashton and Ashton (1986) FLC 91-777

B Pty Ltd v K (2008) FLC 93-380

Baba v Sheehan [2021] NSWCA 58

Barrett & Winnie (2022) FLC 94-093

Bevan & Bevan (2103) FLC 93-545

Bonnici & Bonnici (1992) FLC 92-272

Davidson v Davidson (1991) 8 Leg Rep SL 1

Davidson and Davidson (No 2) (1991) FLC 92-197

Dovgan & Dovgan [2021] FamCA 306

Duff and Duff (1977) FLC 90-217

Eclairs Group Ltd v JKX & Gas Plc [2015] UKSC 71

Essex & Essex (2009) FLC 93-423

Goldsmith & Stinson (2019) FLC 93-930

Goodwin & Goodwin (1991) FLC 92-192

Harris & Caladine (1991) FLC 92-217

Harris & Dewell (2018) FLC 93-839

Harris & Harris (1991) FLC 92-254

Hickey & Hickey (2003) FLC 93-143

Ho v Grigor (2006) 151 FCR 236

JEL v DDF (2001) FLC 93-075

Kelly & Kelly (No 2) (1981) FLC 91-108

Kennon & Spry (2008) 238 CLR 366

Mantel & Mantel [2020] FamCA 157

Martin & Newton (2011) FLC 93-490

Milankov & Milankov (2002) FLC 93-095

Mills v Mills (1938) 60 CLR 150

Montevento Holdings Pty Ltd v Scaffidi (2012) 246 CLR 325

Ogden & Ogden (2010) 245 FLR 1

Owies v JJE Nominees Pty Ltd [2022] VSCA 142

Pittman & Pittman (2010) FLC 93-430

QYFM v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs (2023) 279 CLR 148

R v Dovey; Ex parte Ross (1979) 141 CLR…

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AGLC
Caldwell & Caldwell [2025] FedCFamC1F 506
Case
[2025] FedCFamC1F 506
Decision Date

CaseChat Overview and Summary

In the Federal Circuit and Family Court of Australia, the case of Caldwell & Caldwell involved a dispute between the parties regarding the characterization of certain trusts and their assets within the meaning of the Family Law Act 1975 (Cth). The wife sought a declaration that the trusts and/or trust assets were property of the marriage or either of them, while the husband argued otherwise. The case concerned the proper purpose rule and the nature of the trusts, their beneficiaries, and their assets.

The court had to determine whether the trusts and/or trust assets were property of the marriage or either party within the meaning of the Family Law Act. This involved examining whether the trusts were a sham or an alter ego of the husband, the wife's status as an excluded beneficiary, the contribution of the parties' labours or assets to the trusts, and the existence of significant wealth outside the trusts. The court also had to consider whether the assets of the trusts were a financial resource of the husband for the purposes of section 79.

After considering the evidence and arguments, the court decided that the trusts and/or trust assets were not property within the meaning of section 79 of the Family Law Act. The court dismissed the wife's application for a declaration, and reserved the question of the parties' costs for a later determination. The matter was listed for a case management hearing. The court also allowed all parties and practitioners to appear at the hearing via Microsoft Teams video.

Orders

Orders of the court

1. Paragraph 2A of the Further Amended Initiating Application filed on 28 October 2024 is dismissed.

2. The question of the parties’ costs of and incidental to an Application in a Proceeding filed on 4 April 2025 and the appearance on 20 November 2024 are reserved to the trial judge.

3. The matter is listed for a case management hearing before Judicial Registrar Brooks on 5 August 2025 at 11.00 am.

4. All parties and practitioners have leave to appear at the case management hearing before Judicial Registrar Brooks via Microsoft Teams video.

NOTATIONS:

A. There is no Court by the name “Federal Circuit and Family Court of Australia”. This Court was formerly known as the Family Court of Australia and is now known as the Federal Circuit and Family Court of Australia (Division 1).

B. The design of the seal affixed to this Order issued by the Federal Circuit and Family Court of Australia (Division 1) was determined by the Attorney-General pursuant to the undated Federal Circuit and Family Court of Australia (Seal) Determination 2021 signed by the Attorney-General.

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.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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