FARRELL & FARRELL

This matter came before Ainslie-Wallace J in the Family Court of Australia concerning orders sought by the Wife against the Husband. The dispute centred on the sale of a property held by a company, C Pty Limited, in which the Husband was a director and shareholder. The Wife sought orders for the sale of this property and the distribution of the proceeds.

The primary legal issues before the court were the terms and conditions under which the property should be sold, and the priority of distribution of the sale proceeds. Specifically, the court was required to determine the order in which costs, payments to the Wife for her legal costs and as a partial property settlement, and repayment of moneys to the National Australia Bank should be satisfied from the sale proceeds. The court also considered the provision of information to the Wife's solicitors regarding the sale process and the terms of any restraint on the Wife's actions concerning the property.

Ainslie-Wallace J ordered that the Husband, in his capacity as director and shareholder of C Pty Limited, must sell the W property for the best price reasonably obtainable. Upon settlement, the proceeds were to be applied first to the costs of sale, then to water and council rates and adjustments. An amount of $250,000 was to be paid to the Wife's legal representatives for her costs and as a partial property settlement, with the treatment of these funds in the company's accounts to be documented by the company's accountants. The balance of the proceeds was to be applied towards repayment of moneys outstanding to the National Australia Bank. The Husband was also ordered to provide specific documentation relating to the sale to the Wife's solicitors. Pending further order, the Wife was restrained from entering the property, lodging a caveat, or attending the auction.