CORNISH & CORNISH

In the matter of CORNISH & CORNISH, Williams J of the Family Court of Australia was required to determine the appropriate orders concerning the valuation of a business and the calculation of joint taxation liabilities in a family law proceeding. The dispute centred on the division of assets, specifically the valuation of B Company and the consequent tax implications for the parties.

The primary legal issues before the court were how to facilitate an accurate and timely valuation of B Company, and how to resolve disagreements regarding the parties' joint taxation liability. The court needed to establish a clear process for obtaining expert evidence on the business valuation and for the parties' respective accountants to determine and potentially reconcile their views on the tax position.

Williams J ordered that a single expert witness, Mr C, be appointed to value B Company, with both parties to cooperate fully and provide all necessary documents to enable the report to be completed within one month. Further directions were given for the husband's accountant to provide a calculation of the joint taxation liability within seven days of the business valuation, followed by the wife's accountant providing their calculation within 14 days of receiving the husband's. If the accountants could not agree, they were to convene a roundtable conference to produce a joint statement of agreed and disagreed facts. All other interim applications were dismissed.