GELLEDGE & GELLEDGE

In GELLEDGE & GELLEDGE, Stevenson J of the Family Court of Australia determined property settlement orders between the husband and wife. The dispute primarily concerned the valuation of a business operated by the husband, which catered to a niche market within the health care sector, and the wife's interest in her late father's estate.

The court was required to determine the appropriate valuation methodology for the husband's business, considering that expert reports applied different business models. Additionally, the court had to assess the nature and value of the wife's interest in her father's estate, and whether a potential tax liability on dividends declared to facilitate a lump sum payment to the wife should be included in the balance sheet. The court also considered the contributions of the parties.

Stevenson J preferred the business valuation that applied the current business model of the health care facility. The wife's interest in her father's estate was accepted as a financial resource. The court determined that a potential tax liability on dividends, likely to be divided equally between the parties, should not be included in the balance sheet. The contributions of both parties were considered to be equal.

The orders provided for the husband to transfer the former matrimonial home to the wife and pay her a sum of $13,600,000. In return, the wife was to transfer her shares in various companies to the husband, resign from any positions held with those companies, and relinquish her interest in a family trust. The husband was to indemnify the wife against all debts and liabilities of the companies and the trust. In the event of the husband's non-compliance with the payment order, assets of the trust or a company were to be sold to satisfy the payment. Each party was otherwise entitled to property in their possession or control.