Cross v Beaumont

The appeal concerned a dispute between a husband and wife regarding the division of their property. The husband held a vested interest in a farming property, which was subject to a life tenancy. The primary dispute on appeal related to the trial judge's treatment of the husband's interest in this farming property, specifically concerning the assessment of contributions and the application of relevant factors under section 75(2) of the *Family Law Act 1975* (Cth). A further issue was whether the trial judge erred in ordering the payment of interest on a sum due to the wife, given the husband's inability to immediately realise his interest in the farming property.

The Full Court of the Family Court of Australia was required to determine whether the trial judge had erred in assessing the husband's contributions and in considering the section 75(2) factors. Specifically, the court had to consider whether sufficient weight was given to the nature of the husband's interest in the farming property, which was encumbered by a life tenancy. Additionally, the court needed to decide whether the trial judge erred in ordering the payment of interest under the *Family Law Rules 2004* when the husband lacked the present ability to realise his interest, and whether adequate reasons were provided for departing from section 117B(1) of the *Family Law Act*.

The Full Court found no appealable error in the trial judge's assessment of contributions or in the consideration of section 75(2) factors. The court noted that a discount had been incorporated into the valuation of the husband's interest to account for the life tenancy, and this discount was taken into account by the trial judge. However, the Full Court determined that the imposition of interest at the rate prescribed by the *Family Law Rules* was inappropriate given the husband's inability to realise his interest or borrow against it. Applying section 117B(2)(a) of the *Family Law Act*, the court substituted an interest rate of 5 per cent per annum and deferred the payment of interest until the principal sum was paid.

As the appeal was successful on the ground relating to interest, each party was granted a certificate under the *Federal Proceedings (Costs) Act 1981* (Cth).