COWAN & COWAN

This matter concerned an application for property settlement between the Applicant, Mr Cowan, and the Respondent, Ms Cowan, heard by Judge Scarlett. The primary dispute revolved around the division of assets and liabilities, including the sale of the former matrimonial home and the distribution of its proceeds, as well as the finalisation of partnership affairs and individual tax liabilities. The court also addressed several dismissed applications, including one for contravention and others related to interim distributions and reopening proceedings.

The court was required to determine the just and equitable distribution of the parties' property and financial resources, considering their respective contributions and various factors outlined in section 75(2) of the *Family Law Act 1975* (Cth). Key issues included the management and sale of the matrimonial home, the allocation of sale proceeds, the resolution of capital gains tax liabilities arising from the sale, the finalisation of partnership taxation affairs, and the division of other assets and liabilities, including business interests and credit card debts. The court also needed to address the costs associated with the sale and the finalisation of taxation matters.

In its reasoning, the court ordered the sale of the matrimonial home, with the proceeds to be applied first to sale costs, then to discharge the mortgage, and thereafter to address capital gains tax liabilities. The court directed that a private ruling be obtained from the Australian Taxation Office to assess capital gains tax. The net proceeds were to be applied towards the Respondent's capital gains tax liability, with a portion allocated to her solicitors, and the remainder to be divided, with 60% to the Respondent and 40% to the Applicant. The Applicant was also ordered to indemnify the Respondent for various liabilities, including capital gains tax on another property and all partnership liabilities. The court further ordered the dissolution of the partnership and the finalisation of its taxation affairs, with the Applicant bearing responsibility for associated costs and liabilities. Various other assets and liabilities were allocated between the parties, with the Applicant receiving sole entitlement to certain business interests and the Respondent retaining her superannuation. The court noted that the parties intended these orders to finally determine all financial relations between them.