GARIBALDI & GARIBALDI

In GARIBALDI & GARIBALDI, Hannam J of the Family Court of Australia considered a property dispute between a husband and wife following a long marriage. The parties faced a negative asset pool, with the majority of their assets comprising superannuation entitlements that were not readily available to discharge outstanding debts. A significant issue arose from the husband's use of company funds to meet expenses, resulting in a substantial taxation liability.

The court was required to determine whether certain items should be included in the pool of matrimonial assets and liabilities for division. Specifically, the court had to consider the equal contributions of the parties to date of separation, the potential inclusion of contributions made by the husband's father as contributions in favour of the husband, and whether a small adjustment should be made in favour of the wife under section 75(2) of the *Family Law Act 1975* (Cth) based on just and equitable considerations.

Hannam J reasoned that while contributions to date of separation were equal, the specific circumstances warranted a departure from a strict 50/50 division. The court acknowledged the husband's father's contributions but ultimately determined they did not necessitate a significant adjustment in favour of the husband. The court also considered the wife's financial position and the overall just and equitable outcome, leading to a modest adjustment in her favour.

The orders made by the court included the transfer of jointly owned IAG shares to the wife, the wife transferring her interest in S Pty Ltd to the husband, and the husband assuming sole liability for a debt owed to T School, indemnifying the wife in respect of this liability. Each party was to retain property in their possession and be solely liable for other liabilities, with all outstanding property applications being dismissed.