GRIFFITH & GRIFFITH

In *Griffith & Griffith*, Judge McGuire of the Federal Circuit Court of Australia was tasked with determining the financial relationship between a husband and wife following their separation. The dispute centred on the division of assets and liabilities, particularly concerning post-separation expenditures and liabilities incurred by the wife.

The court was required to determine whether certain liabilities incurred by the wife post-separation, including credit card debt, personal loans, and advances, should be included in the matrimonial property pool for division. The wife argued these liabilities were reasonably incurred for her support and that of the children, especially given the husband's continued benefit from the former partnership business and his superior financial position post-separation. Conversely, the husband contended that these liabilities should be disregarded as they were incurred by the wife after the parties had separated.

Judge McGuire reasoned that the husband had maintained a reasonably satisfactory financial situation post-separation, enabling him to fund home improvements, support adult children, and meet his legal costs. In contrast, the wife's financial position was considered inferior, as she did not secure employment for a significant period and experienced a weekly shortfall after her expenses. The court noted the wife's contributions to the financial support of the children and found no evidence of an extravagant lifestyle. Considering the length of separation and the parties' respective financial circumstances, the court was satisfied that the wife's expenditure on her credit card, personal loans, and advances was reasonably incurred for her and the children's support. Consequently, these liabilities were to be included in the property pool.

The court ordered the husband to pay the wife a lump sum of $309,505 and transfer certain assets to her, including her motor vehicle and superannuation. The wife was ordered to transfer her interest in the jointly owned property and other assets to the husband. Both parties were to be solely responsible for and indemnify each other in respect of specified liabilities, including legal costs and debts attaching to assets retained by each party. The orders were intended to finally determine the financial relationship between the parties, pursuant to section 81 of the *Family Law Act 1975*.