Chan & Lee

Ms Chan appeals against the final property settlement orders made by the Family Court of Australia on 23 March 2021, in relation to the property dispute between herself and Mr Lee. The appeal concerns the allocation of assets and liabilities between the parties following their separation and divorce. The wife argues that the orders leave her in a net debt position, despite being allocated all the assets of the relationship. This appeal requires the court to determine whether the primary judge made an error of law or fact, or otherwise acted in a manner that resulted in a manifestly or plainly wrong outcome.

The central legal issues in this appeal relate to the primary judge's assessment of the parties' contributions, the identification and valuation of the assets and liabilities, and the resulting property settlement orders. The wife contends that the primary judge erred in excluding certain Chinese properties from the pool for division and in not adequately considering the parties' total indebtedness. The wife also argues that the primary judge's orders, which required her to indemnify the husband in respect of the total indebtedness, resulted in her receiving a net liability rather than a net asset.

The court found that the primary judge did not err in excluding the Chinese properties from the pool for division, as there was no admissible evidence of their sale price, and the husband was not presently able to receive any benefit from them. However, the court found that the primary judge made an error of fact in not properly considering the total indebtedness of the parties. The court found that the parties were in a net debt position of approximately $14,000, rather than the net asset position of $162,874 that the primary judge had calculated. This error led to the primary judge's orders, which required the wife to indemnify the husband in respect of the total indebtedness, resulting in the wife receiving a net liability.

The appeal was allowed, and the orders made by the Family Court of Australia on 23 March 2021 were set aside. The court ordered that the husband transfer all his right, title, and interest in the B Street, Suburb C property to the wife, and that the wife indemnify the husband in respect of any and all liabilities relating to the property. The court also ordered that each party retain any asset in their possession, other than as provided in the orders. The husband was ordered to pay the wife's costs in the sum of $550 within 28 days of the date of the orders.