Finazzi & Finazzi

In *Finazzi & Finazzi*, the wife sought an interim property settlement of $350,000 to cover her legal fees and other expenses. The parties had already incurred approximately $1.4 million in legal and expert fees, with the wife having paid a significantly larger proportion. The trial had not yet concluded, and further fees were anticipated. The wife provided evidence that she was unable to secure funds from other sources, and the proposed funding was either through a further loan from the husband's business or the sale of real property. The husband contended that borrowing the requested amount from his business risked liquidation, and selling the properties would result in the bank taking 90% of any proceeds due to existing loans.

The court was required to determine whether the interests of justice necessitated an interim exercise of its powers under sections 79 and 80(1)(h) of the *Family Law Act 1975* (Cth) to address the wife's immediate need for funds to pay her legal fees. The court also considered the husband's submissions regarding the financial implications of the proposed funding methods for his business and the real property.

Murphy J reasoned that neither party should be in a more advantageous position regarding the payment of fees in preparation for trial when the source of funding was the husband's business. The court acknowledged the significant legal costs already incurred and the ongoing need for legal representation. The court ultimately made orders for a partial property settlement to facilitate the payment of legal fees.

The court ordered that the husband was to pay up to $150,000 to his own legal practitioners and up to $150,000 to the wife's legal practitioners within five working days of receipt of their accounts. The husband was also required to provide documentation identifying the source and accounting treatment of these payments. Upon the husband reaching the $150,000 limit for each set of practitioners, further payments were to be subject to notice to the other party or court leave. The question of how these interim payments would be treated in the final property settlement was reserved to the trial.