Dirk and Dirk

In *Dirk & Dirk* [2011] FamCA 1032, the Family Court of Australia considered an application for interim spousal maintenance. The applicant wife sought maintenance from the respondent husband, with the central dispute revolving around the husband's asserted reduction in income and his consequent ability to pay. The wife's claimed weekly expenses were $1228, while the husband claimed $1085.

The court was required to determine whether the husband had the capacity to pay spousal maintenance, particularly in light of his financial statements which indicated a significant decrease in his reported income. The wife suggested this reduction might be a tactic to diminish the husband's apparent capacity to pay, though the court noted this was not an argument it needed to determine for the interim application. The court also considered the wife's need for a motor vehicle capable of towing a caravan.

Justice Rees reasoned that the husband's ability to pay could be assessed by considering his past borrowing from his company, his sole guarantee of the company's substantial loans, and the fact that his solicitors also acted for the company. These factors led the court to conclude that the husband could increase his income or borrow funds to meet maintenance obligations. The court ordered the husband to provide a station wagon for the wife's use, cover its registration, insurance, and maintenance, and continue paying the mortgage on the former matrimonial home, rates, building insurance, and medical benefits contributions. Additionally, the husband was ordered to pay interim spousal maintenance of $350 per week, taking into account the wife's income of $250 per week and her calculated expenses. The parties also consented to orders regarding the valuation of their interests in various companies and superannuation funds.