Coleman and Norwood

This matter concerned an application before Hogan J, brought by the Wife against the Husband, in his capacity as Director of N Pty Ltd as Trustee for the N Property Trust. The dispute centred on the proposed sale of various properties held by the Trust, with the Wife seeking orders to restrain the Husband from dealing with these properties unless specific conditions were met.

The court was required to determine the terms upon which the Husband, as trustee, could sell the specified properties. This involved establishing requirements for disclosure to the Wife regarding marketing plans, agent appointments, proposed fees, and any offers received. The court also needed to set minimum sale prices and reserve prices for each lot, and dictate the process for providing contracts and settlement details to the Wife. Further issues included the application of sale proceeds, communication protocols between the parties, and restrictions on the Husband's withdrawal of funds for legal costs and the Trust's borrowings.

Hogan J applied principles of family law and trust law to fashion orders designed to protect the Wife's interests in the marital assets held within the Trust. The court imposed a detailed framework for the sale of the properties, mandating transparency and setting minimum financial thresholds to ensure the Wife received a fair outcome. This included specific notice periods for the Wife, requirements for written offers, and the establishment of minimum sale and reserve prices detailed in Schedule 'A'. The court also placed limitations on the Husband's ability to incur further debt for the Trust and to withdraw funds for his legal costs, while allowing a specified amount for those costs and a cap on the Trust's liabilities.

The court ordered that the Husband, as trustee, be restrained from selling the specified properties unless he complied with a series of conditions, including providing the Wife with detailed information about proposed sales, marketing, and offers. The Husband was also ordered to sell the properties at or above the minimum sale prices set out in Schedule 'A', and to provide the Wife with copies of contracts and settlement details. The proceeds of sale were to be applied first to sale costs and then to discharge liabilities of the Trust to the National Australia Bank. The court also made orders regarding communication between the parties, restrictions on the Husband's legal cost withdrawals and the Trust's borrowings, and reserved costs.