Darcy and Darcy (No. 3)

In *Darcy and Darcy (No. 3)*, the Honourable Justice Cronin considered the division of property and associated liabilities between a husband and wife. The dispute centred on the disposition of two properties, one registered in the wife's name (the B property) and another in the husband's name (the T property), as well as the management of capital gains tax liabilities arising from property sales.

The court was required to determine how the interests in the B property should be transferred, the conditions under which the husband's liability for a mortgage on that property should be discharged, and the consequences if such discharge did not occur by a specified date. Furthermore, the court needed to establish the order of disbursement of proceeds from the sale of the T property, including the payment of specific debts and the setting aside of funds for capital gains tax. The court also had to address the husband's access to remaining funds from the T property sale and the division of any surplus capital gains tax funds.

Justice Cronin ordered that the husband transfer his interest in the B property to the wife upon her submission of a registrable transfer, with the wife bearing the costs. The wife was also directed to arrange for the discharge of the husband's liability under a specific mortgage encumbering the B property by a set date, and to indemnify the husband against all liability arising from that mortgage. If the wife failed to provide evidence of the mortgage discharge by the deadline, the property was to be sold by auction, with the net proceeds applied first to sale costs, then to discharge the mortgage, and the balance paid to the wife. The proceeds from the sale of the T property were to be disbursed to specific creditors, with a significant sum set aside to cover potential capital gains tax on other property sales. The husband was restrained from accessing the remaining funds from the T property sale until after the determination of any costs applications, and a portion of the capital gains tax funds was to be held in an interest-bearing account, with the husband responsible for any interest earned. Any surplus capital gains tax funds were to be divided between the parties, with 70% to the wife and 30% to the husband. The court also ordered that each party retain their respective superannuation and other property interests, and that all applications, subject to costs, be dismissed.