Chalmers and Chalmers (No.2)

In Chalmers and Chalmers (No.2), Judge Terry of the Federal Circuit Court was required to make orders concerning the property settlement of the parties following their separation. The dispute involved the distribution of funds held in trust from the sale of a property, the division of interests in certain businesses, and the indemnification of one party from business-related liabilities.

The court was tasked with determining how the proceeds from the sale of Property C should be disbursed between the wife and the husband. Further issues included the transfer of interests in two specific businesses from the wife to the husband, and the extent to which the husband should indemnify the wife against existing and future liabilities associated with those businesses, including those owed to the Australian Taxation Office and arising from debtors or personal guarantees. The court also needed to address the ownership of all other property and superannuation held by each party.

The court ordered the disbursement of the trust funds from the sale of Property C, allocating specific amounts and percentages of any surplus to both the wife and the husband by way of property settlement. The wife was ordered to transfer her interest in the two businesses to the husband, who in turn was ordered to indemnify her against all debts and liabilities relating to those businesses, including tax obligations and personal guarantees. The court declared each party the owner of all other property and superannuation in their possession. Finally, pursuant to section 106A of the Family Law Act, a Registrar of the Federal Circuit Court was appointed to execute any necessary documents if either party failed to do so, to give effect to the orders.