FB & UB & Ors

Case [2006] FMCAfam 289


FEDERAL MAGISTRATES COURT OF AUSTRALIA

FB & UB & ORS [2006] FMCAfam 289
FAMILY LAW – Property – accrued jurisdiction – where adult children claim equitable interest in parents investment property – trusts – resulting and constructive trusts – whatever equity adult son had in investment property extinguished by the time he vacated property – where adult daughter establishes constructive trust – equity makes the minimal order that is necessary to relieve the conscience of the legal owner – adult daughter entitled to an equitable charge over investment property – determination of asset pool – obligation to give full and frank disclosure – notional add-backs.
Family Law Act 1975, ss.75, 79
Child Support (Assessment) Act 1989
Real Property Act 1900
Conveyancing Act 1919
Evidence Act 1995 (Cth)
Dougherty (1987) FLC 91-823
Egan (1989) 13 FLR 577
Spellson and George (1989) 13 FLR 242
Bate v Priestley (1989) 13 FLR 376
Elassy and Hamy (2006) FamCA 216
In the Marriage of Lee Steere (1985) FLC 91-626
In the Marriage of Ferraro (1993) FLC 92-335
In the Marriage of Clauson (1995) FLC 92-593
Russell v Russell (1999) FLC 92-877
Weir v Weir (1993) FLC 92-338
Black v Kellner (1992) FLC 92-287
Junti (1986) FLC 91-759
Mezzacappa (1987) FLC 91-853
Jenkins v Livesey (1985) 1 All ER 106
Luciano (2000) FamCA 401
Calverly v Green (1984) 155 CLR 242
Allen v Snyder (1977) 2 NSWLR 685
Black Uhlans Incorporated v New South Wales Crime Commission (2002) NSWSC 160
Muschinski v Dodds (1985) 160 CLR 583
Atwood v Maude 107 (1868) L.R. Ch. App., at pp. 374-375
Jessel M.R., Lyon v Tweddell 108 (1881) 17 Ch. D. 529
Baumgartner (1987) 164 CLR 137
Green v Green (1989) 17 NSWLR 343
Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR Beatty v Guggenheim Exploration Co (1919) 22 NY at 389
Cooke v Cooke (1987) VR 625 at 639
Wright v Wright & Adams (1996) FLR 89
Nichols (1986) 4 BPR 9240
Omacini and Omacini (2005) FLC 93-218
DJM and JLM (1998) FLC 92-816]
Townsend and Townsend (1995) FLC 92-569
Kowaliw and Kowaliw (1981) FLC 91-092
Hauff (1986) FLC 91-747
Chorn & Hopkins (2004) FLC 93-204
Tomasetti (2000) FLC 93-023
Applicant: FB
Respondent: UB
First Intervener: GB
Second Intervener: AB
File Number: PAM548 of 2004
Judgment of: Ryan FM
Hearing dates:

19-21 July 2005, 29-30 August 2005,

21-22 December 2005

Final submissions: 16 May 2006
Delivered at: Parramatta
Delivered on: 16 June 2006

REPRESENTATION

Counsel for the Applicant: Mr. G. Thisleton
Solicitors for the Applicant: Pye Lawyers
Counsel for the Respondent: Ms. L. Snelling
Solicitors for the Respondent: Sayan & Associates
Counsel for the Interveners: Mr. D. Maddox
Solicitors for the Interveners: Barber & Massey

ORDERS

  1. Within twelve weeks of the date of these orders the wife pays to the husband the sum of sixty nine thousand four hundred and fifty five dollars and ninety five cents ($69,455.95).

  2. Simultaneously upon compliance by the wife with Order (1) the husband shall do all acts…

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Details
AGLC
Fb & UB [2006] FMCAfam 289
Case
[2006] FMCAfam 289
Decision Date

CaseChat Overview and Summary

In the case of FB & UB & Ors, the primary issue before the court was the division of property between the parties following the dissolution of their marriage. The court was required to determine the equitable distribution of assets, specifically focusing on two properties, one located at Rooty Hill and the other at Colyton. Additionally, the court had to address the interest of a third party, GB, in the Colyton property. The court's decision involved assessing the contributions of each party to the acquisition and maintenance of the properties, as well as the respective needs and future prospects of the parties involved. The outcome of the case mandated the payment of a specified sum from the wife to the husband, the transfer of property interests, and the establishment of an equitable charge in favour of GB in the Colyton property.

The court meticulously evaluated the evidence presented regarding the parties' financial situations, their contributions to the matrimonial assets, and their respective needs post-separation. It considered the duration of the marriage, the age and health of the parties, and their earning capacities. The court held that the wife should pay the husband a specified lump sum and that the property at Rooty Hill should be transferred to the husband upon compliance. If the wife failed to make the payment, the property was to be sold, and the proceeds distributed according to the court's order. Furthermore, the court found that GB held a 15.5 per cent equitable interest in the Colyton property, which could be secured by caveat and would be payable to her upon the property's sale or the husband's death, whichever occurred first. The court also made provisions for the return of exhibits and subpoenaed material, and dismissed other outstanding applications unless related to costs.

The court's orders directed that the wife must pay the husband $69,455.95 within twelve weeks. Upon payment, the husband was to transfer his interest in the Rooty Hill property to the wife. If the payment was not made, the property was to be sold, and the proceeds distributed according to the court's directions. The wife was to transfer her interest in the Colyton property to the husband upon his compliance with the order regarding the Rooty Hill property. GB's equitable interest in the Colyton property was declared, with payment to be made upon the sale of the property or the husband's death. The court further stipulated the return of exhibits and subpoenaed material, and dismissed other outstanding applications, except for those related to costs.

Orders

Orders of the court

1.

Within twelve weeks of the date of these orders the wife pays to the husband the sum of sixty nine thousand four hundred and fifty five dollars and ninety five cents ($69,455.95).

2.

Simultaneously upon compliance by the wife with Order (1) the husband shall do all acts and execute all documents as are necessary to transfer to the wife the whole of his right, title and interest in the property situate at Rooty Hill being the whole of the land in Certificate of Title Folio Identifier 27/BB/2042.

3.

In the event the wife fails to comply with Order (1) the parties do all such acts and execute all such documents as may be required to effect a sale of the former matrimonial home situate at Rooty Hill to be sold by private treaty at a price agreed upon between the parties and failing such agreement to be determined by the President of the Australian Property Institute of New South Wales or his nominee.

4.

Upon the completion of the sale proceeds of the sale be applied as follows:

(a) To pay all costs, commissions and expenses of the sale and to pay any council and water rates and maintenance levies outstanding in respect of the matrimonial home.

(b) Fifty per cent to the wife.

(c) Balance then remaining to the husband who shall immediately pay the wife one hundred and twenty thousand five hundred and forty four dollars and five cents ($120,544.05).

5.

Simultaneously upon compliance by the husband with Order (2) the wife shall do all acts and execute all documents as are necessary to transfer to the husband the whole of her right, title and interest in the property situate at Colyton being the whole of the land in Certificate of Title Folio Identifier 17/SP36697.

6.

The court declares that GB has a 15.5 per cent interest by way of an equitable charge in the property at Colyton. GB’s equitable interest in this property may be secured by caveat and shall be paid to her upon the property’s sale or the husband’s death, whichever first occurs.

7.

All exhibits tendered in these proceedings shall be returned at the expiration of one calendar month unless an appeal is lodged.

8.

The solicitor who issued any subpoena collects that subpoenaed material and returns it to the owner within seven (7) days.

9.

Other than any costs applications, all outstanding applications are dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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