HANLON & REID

In the matter of HANLON & REID, Watts J of the Family Court of Australia made property settlement orders between the applicant wife and the respondent husband. The dispute concerned the division of various assets and liabilities, including real estate, company shares, and trust interests.

The court was required to determine the terms of a property settlement, including the transfer of specific properties, the sale of another property with a specified listing price and a mechanism for sale by private treaty or auction, the distribution of sale proceeds, and the division of joint bank accounts. Further issues included the transfer of company shares, the husband's resignation as a director, and the wife's indemnification of the husband in relation to company and trust liabilities. The court also addressed the discharge of trust obligations and the retention of specific personal assets by each party.

Watts J applied the principles of property settlement under section 79 of the *Family Law Act 1975* (Cth). The court ordered the transfer of two properties between the parties, with each party retaining one property. A third property was ordered to be listed for sale, with detailed provisions for its sale by private treaty or auction, including a reserve price and a specific distribution of sale proceeds, with a higher percentage of any increase above $1,250,000 to go to the wife, and a higher percentage of any decrease to be borne by the wife. The court also ordered the division of joint bank accounts and the transfer of the husband's shares in M Pty Ltd to the wife, along with his resignation as director. The wife was to indemnify the husband for various liabilities related to the company and a trust.

The court made orders for the wife to wind up the Reid Family Settlement Trust and for the trust to be discharged from any obligations to the husband. The husband was permitted to retain specific personal assets, including bank accounts and vehicles. The orders also included a provision under section 106A of the *Family Law Act 1975* (Cth) appointing a Registrar to execute documents in the event of a party's default, with the defaulting party to pay the other party's costs on an indemnity basis.