CHADWICK & CHADWICK

In the matter of *Chadwick & Chadwick*, Stevenson J of the Supreme Court of New South Wales considered a dispute concerning the interpretation of a deed of settlement and its implications for the division of property between the parties. The central issue revolved around whether certain assets, specifically shares in a company, were to be included in the property pool for division under the terms of the deed.

The court was required to determine the proper construction of clause 3 of the deed of settlement, which stipulated the division of assets. Specifically, the court had to ascertain whether the shares in Chadwick Holdings Pty Ltd, held by Mr Chadwick, fell within the definition of "property" as contemplated by the parties at the time the deed was executed, or if they were excluded by virtue of being held on trust for the benefit of the parties' children.

Stevenson J applied principles of contractual interpretation, focusing on the ordinary meaning of the words used in the deed, read in their context and against the background of the surrounding circumstances known to the parties. The court found that the language of clause 3, particularly the phrase "all property of the parties," was sufficiently broad to encompass the shares, notwithstanding the existence of a trust. The judge reasoned that the parties had intended to achieve a comprehensive division of all their assets, and the trust arrangement did not alter the beneficial ownership of the shares in a manner that would exclude them from the settlement.

The court ordered that the shares in Chadwick Holdings Pty Ltd were to be included in the property pool for division in accordance with the terms of the deed of settlement.