Challen & Challen

Case [2007] FamCA 1292


FAMILY COURT OF AUSTRALIA

CHALLEN & CHALLEN [2007] FamCA 1292
FAMILY LAW - PROPERTY – Add backs – Contributions – Initial Contributions – Section 75(2) factors – Necessary expenses
Child Support Assessment Act 1989 (Cth)
Family Law Act 1975 (Cth)

Bremner and Bremner (1995) FLC 92-560; (1994) 19 Fam LR 407

Browne v Green (1999) FLC 92-873
C v C [1998] FamCA 143
Chorn and Hopkins (2004) FLC 93-204; (2004) 32 Fam LR 518

Coghlan and Coghlan (2005) FLC 93-220; (2005) 33 Fam LR 414
Hickey and Hickey and Attorney- General for the Commonwealth of Australia (Intervenor) (2003) FLC 93-143; (2003) 30 Fam LR 355
In the Marriage of Clauson (1995) FLC 92-595; (1995) 18 Fam LR 693
In the Marriage of Ferraro (1993) FLC 92-335; (1992) 16 Fam LR 1
In the Marriage of Gyselman (1992) FLC 92-279; (1991) 15 Fam LR 219
In the Marriage of Kowaliw (1981) FLC 91-092
In the Marriage of Lee Steere (1985) FLC 91-626; (1985) 10 Fam LR 431
In the Marriage of Mallet (1984) 156 CLR 605; (1984) FLC 91-507; (1984) 9 Fam LR 449
In the Marriage of Norbis (1984) FLC 91-543; (1983) 9 Fam LR 385
In the Marriage of Robb (1995) FLC 92-555; (1994) 18 Fam LR 489

In the Marriage of Townsend (1995) FLC 92-569; (1994) 18 Fam LR 505.

In the Marriage of Vick and Hartcher (1991) FLC92-262; (1991) 15 Fam LR 149
Macgregor v Macgregor (1996) FLC 92-710; (1996) 21 Fam LR 57

M v M [1998] FamCA 42
Omacini and Omacini (2005) FLC 93-218; (2005) 33 Fam LR 134

Pierce v Pierce (1999) FLC 92-844
Way and Way (1996) FLC 92-702

APPLICANT: Ms CHALLEN
RESPONDENT: Mr CHALLEN
FILE NUMBER: MLF 1126 of 2006
DATE DELIVERED: 5 November 2007
PLACE DELIVERED: Brisbane
PLACE HEARD: Melbourne
JUDGMENT OF: MURPHY J
HEARING DATE: 15 - 17 October 2007

REPRESENTATION

COUNSEL FOR THE APPLICANT: Mr Atkinson of Counsel
SOLICITOR FOR THE APPLICANT: Susan Snyder
COUNSEL FOR THE RESPONDENT: Ms Smallwood of Counsel
SOLICITOR FOR THE RESPONDENT: Mason Sier Turnbull

ORDERS

As and by way of settlement of property pursuant to s 79 of the FamilyLaw Act 1974 (as amended):

IT IS ORDERED BY CONSENT THAT

  1. Within 28 days, the husband sign all documents and do all things to transfer the property at D Street (“the said property”) in the State of Victoria to the wife being the whole of the land more particularly described in Certificate of Title Volume … Folio … and that upon such transfer, the husband pay all monies due and owing in respect of the mortgage secured over the property and thereafter the wife indemnify the husband in respect of all outgoings relating to the said property.

  2. The furniture in the property at D Street be retained by the wife save for the antique desk (originally belonging to the husband’s grandfather) which shall be collected by the husband within 28 days of the date of this Order.

  3. The husband continue to make the…

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AGLC
Challen & Challen [2007] FamCA 1292
Case
[2007] FamCA 1292
Decision Date

CaseChat Overview and Summary

This matter concerned property settlement orders made by consent between the husband and wife, pursuant to section 79 of the *Family Law Act 1974* (Cth). The orders detailed the division of various assets and liabilities, including real property, personal belongings, company interests, and superannuation entitlements.

The court was required to formalise the agreed property settlement between the parties. The orders addressed the transfer of a property at D Street from the husband to the wife, the division of furniture, and the management of an ING Savings Bond for the child's future education. Further orders stipulated a lump sum payment from the husband to the wife, the transfer of interests in S Pty Ltd and Challen Nominees Pty Ltd, and the allocation of responsibility for capital gains tax on a specific unit sale. The parties also agreed to abandon certain claims to vehicles, shares, and superannuation entitlements.

The court's reasoning was based on the consent of the parties to the proposed property settlement. The orders reflect a comprehensive agreement to divide the marital assets and liabilities, with specific provisions for indemnities to protect each party from future claims and liabilities arising from the transferred assets or businesses. The orders aimed to achieve a final resolution of the parties' financial relationship.

By consent, the court ordered the transfer of the D Street property to the wife, with the husband to discharge the mortgage and the wife to indemnify him for future outgoings. The wife retained most furniture, save for an antique desk to be collected by the husband. The ING Savings Bond proceeds were to be applied towards the child's education. The husband was to pay the wife $100,000 contemporaneously with the property transfer and mortgage release. The parties were to take steps to transfer interests in S Pty Ltd and Challen Nominees Pty Ltd to the husband, with the husband indemnifying the wife for liabilities. The husband was to be solely responsible for Capital Gains Tax on the R Unit sale. Each party was to retain property in their name and be responsible for their respective liabilities, save as otherwise provided. All extant applications were dismissed.

Orders

Orders of the court

As and by way of settlement of property pursuant to s 79 of the FamilyLaw Act 1974 (as amended):

IT IS ORDERED BY CONSENT THAT

1.

Within 28 days, the husband sign all documents and do all things to transfer the property at D Street (“the said property”) in the State of Victoria to the wife being the whole of the land more particularly described in Certificate of Title Volume … Folio … and that upon such transfer, the husband pay all monies due and owing in respect of the mortgage secured over the property and thereafter the wife indemnify the husband in respect of all outgoings relating to the said property.

2.

The furniture in the property at D Street be retained by the wife save for the antique desk (originally belonging to the husband’s grandfather) which shall be collected by the husband within 28 days of the date of this Order.

3.

The husband continue to make the monthly payments as and when they become due in respect of the ING Savings Bond Account and that upon maturity (estimated to be in approximately 4 years time) the proceeds of the said account be paid into an account in the name of the husband and wife to be applied towards educational expenses for the child of the marriage J for her education.

IT IS ORDERED THAT:

4.

Contemporaneously with the transfer provided for in paragraph 1 of these orders and the release of the said mortgage therein referred to, the husband pay to the wife a lump sum payment of $100,000.

5.

The husband and the wife shall each do all such things and sign all such documents as might be necessary so as to:

(a) Transfer to the husband, at the expense of the husband, all her right, title and interest in S Pty Ltd and resign any position she holds in the said company, and the husband shall indemnify and keep indemnified, the wife in respect of any liability, including taxation liability, of the said company;

(b) Abandon any right, title, claim or interest the wife has in the company Challen Nominees Pty Ltd and the business known as T Imports, such that the husband retain sole, right, title, claim or interest in the said company and the said business and the husband shall indemnify and keep indemnified, the wife in respect of all liabilities in relation to either the said company or the said business including, but not limited to, any taxation liabilities;

(c) Effect the husband being solely responsible for any Capital Gains Tax payable in respect of the sale of the property being the R Unit, and the husband shall indemnify and keep indemnified, the wife in respect of any such liability;

(d) Abandon any right, title, claim or interest that the husband has, or may have, in and to: the 2005 Audi A3 motor vehicle currently in possession of the wife; any shares in the name of the wife and any superannuation entitlements with the Hesta Superannuation Fund; any superannuation entitlement of the wife in the Challen Superannuation Fund; and

(e) Abandon any right, title, claim or interest that the wife may have in the member benefit entitlement of the husband in the Challen Superannuation Fund; the 2000 Holden Commodore Clubsport motor vehicle; the Honda VS75 motorbike and the antique desk referred to in paragraph 2 of these orders.

6.

Save as otherwise provided in these Orders, each of the parties shall be entitled to all rights, titles and interests in and to all property in their name or possession as at the date of these Orders.

7.

Save as otherwise provided in these Orders, each of the parties shall be responsible for, and shall indemnify the other in respect of, all liabilities in their respective names or for which they are respectively liable.

IT IS FURTHER ORDERED THAT

8.

All extant applications be otherwise dismissed and removed from the list of cases awaiting finalisation.

9.

All material produced pursuant to subpoenae issued for the production of documents be returned to their respective providers after the time for appeal has lapsed.

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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