FAN & LOK

In the matter of *Fan & Lok*, Rees J of the Federal Circuit and Family Court of Australia was required to determine whether a financial agreement dated 20 January 2003 between Ms Fan (the wife) and Mr Lok (the husband) should be enforced as if it were an order of the Court. The dispute concerned the division of assets and liabilities, specifically relating to properties and a significant debt owed to HSBC Bank.

The primary legal issue before the Court was the enforceability of the financial agreement under section 90KA(c) of the *Family Law Act 1975* (Cth). This involved considering whether the agreement met the criteria for enforcement as a court order, particularly in light of the parties' obligations concerning the repayment of a joint borrowing of $430,000 and the potential sale of a property at B Street, Suburb C, New South Wales.

Rees J reasoned that the financial agreement was to be enforced as if it were an order of the Court. The Court made specific orders regarding the payment of a sum of $7,292.59 to HSBC Bank within 14 days, and that the husband was to repay the principal amount of $430,000 within 42 days. Should the husband fail to meet this repayment obligation, the Court ordered that he must sign all necessary documents to sell the property at B Street, Suburb C, on terms and conditions to be agreed between the parties or, failing agreement, determined by a valuer, real estate agent, and solicitor appointed by relevant professional bodies. The net proceeds of sale were to be applied towards the HSBC debt, with any balance distributed to the husband. The Court also made provisions for a Registrar to sign documents on behalf of a defaulting party and stipulated timeframes for responses to proposals and requests, defining a failure to respond within 14 days as a refusal for the purposes of enforcement.