FAMILY COURT OF AUSTRALIA
| HEARST & HEARST AND ORS | [2010] FamCA 977 |
| FAMILY LAW – PROPERTY – Proceedings for settlement of property part of which co-owned by husband and member’s of husband’s family – Determining asset pool required determination of third party interests – Equity of exoneration successfully raised by co-owners against husband – Charge for capital value of improvements to co-owned realty by husband and wife reduced by occupation fee payable to co-owners – Co-owners entitled to orders pursuant to s 66G Conveyancing Act 1919 (NSW) in default of husband paying out their entitlements to co-owned assets as determined by the court – Approximately one third of party pool considered referrable to husband’s inheritances – Further one third considered overwhelmingly referrable to contentions by wife to jointly owned company valued at approximately one third of parties pool – Deposited valuation of company determined – Section 75(2) adjustment in husband’s favour referrable to wife’s greater earning ability – Overall entitlement of parties to non-superannuation assets determined as 48 per cent to wife and 52 per cent to husband – Entitlement of parties to superannuation interests determined as 75 per cent to wife and 25 per cent to husband – Cost reserved |
| Family Law Act 1975 (Cth) ss 79, 75(2) |
| Coulton v Holcombe (1986) 162 CLR 1 Metwally (No 2) v University of Wollongong (1985) 60 ALR 68 Ryan v Dries (2002) NSWCA 3 Coghlan v Coghlan (2005) FLC ¶ 93-220 Spencer v The Commonwealth (1907) 5 CLR 418 Makita (Australia) Pty Ltd v Sprowles [2001] 52 NSWLR 705 Federal Commissioner of Taxation v St Helens Farm (ACT) Pty Ltd [1981] HCA 4; (1981) 146 CLR 336 Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 24 Commonwealth v Reeve (1949) 78 CLR 410 Preece v Preece (1981) FLC 91-048 Pierce v Pierce (1999) FLC 92-844 Kardos v Sarbutt [2006] NSWCA 11 Farmer v Bramley (2000) FLC 93-060 |
| APPLICANT: | Ms Hearst |
| FIRST RESPONDENT: | Mr Hearst |
| SECOND RESPONDENT: | Ms Kent |
| THIRD RESPONDENT: | Ms Somers |
| FILE NUMBER: | SYC | 5110 | of | 2008 |
| DATE DELIVERED: | 18 October 2010 |
| PLACE DELIVERED: | Dubbo |
| PLACE HEARD: | Dubbo and Parramatta |
| JUDGMENT OF: | Coleman J |
| HEARING DATES: | 24, 25, 26, 27 August 2009 and 8 December 2009 |
REPRESENTATION
| COUNSEL FOR THE APPLICANT: | Mr Robert Lethbridge SC with Ms Anne Rees SC |
| SOLICITOR FOR THE APPLICANT: | Campbell Paton & Taylor |
| COUNSEL FOR THE FIRST RESPONDENT: | Mr Peter Batey |
SOLICITOR FOR THE FIRST RESPONDENT: | Lee Dalton & Associates |
| COUNSEL FOR THE SECOND & THIRD RESPONDENTS: | Mr Julian Millar |
| SOLICITOR FOR THE SECOND & THIRD RESPONDENTS: | Messenger & Messenger |
Orders
That the husband hold his equity in Lot 51 OE Property and A Property on trust for himself and the wife as tenants in common in shares of 61 percent to the husband and 39 percent to the wife.
That the parties have leave to file minutes of order implementing the court’s reasons for judgment in chambers.
That any party have liberty to apply on 48 hours notice on or after 29…
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- Hearst and Hearst & Ors [2010] FamCA 977
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- [2010] FamCA 977
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CaseChat Overview and Summary
The central legal issue before the court was how to equitably divide the parties' interests in these assets, considering their respective contributions and future needs. The court's determination would establish the respective beneficial ownership of these properties between the husband and wife.
Coleman J ordered that the husband hold his equity in Lot 51 OE Property and A Property on trust for himself and the wife as tenants in common. The shares were determined to be 61 percent for the husband and 39 percent for the wife. The parties were granted leave to file minutes of order to implement these reasons for judgment, with liberty to apply on 48 hours notice after 29 November 2010. Costs were reserved.
Orders
Orders of the court
1.
That the husband hold his equity in Lot 51 OE Property and A Property on trust for himself and the wife as tenants in common in shares of 61 percent to the husband and 39 percent to the wife.
2.
That the parties have leave to file minutes of order implementing the court’s reasons for judgment in chambers.
3.
That any party have liberty to apply on 48 hours notice on or after 29 November 2010.
4.
That costs be reserved.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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