HIBBERT & HIBBERT

In *Hibbert & Hibbert*, Rees J of the Federal Circuit and Family Court of Australia considered a property settlement dispute between a husband and wife. The primary dispute involved the division of assets and liabilities, including significant loans made by the husband to his stepchildren and the wife's son, as well as claims for "addbacks" relating to alleged waste of matrimonial funds by both parties.

The court was required to determine the enforceability of loans made by the husband to his stepchildren, given the passage of time and the operation of the *Limitation Act 1969* (NSW). Additionally, the court had to consider whether to "add back" certain expenditures made by the wife on her son's living expenses, the wife's gambling on poker machines, and the husband's betting on horse races, when calculating the net property of the parties. The court also had to address the proceeds from the sale of thoroughbreds and funds held in trust for legal fees.

Rees J found that loans made by the husband to his stepchildren, being repayable on demand, were statute-barred under section 14(1) of the *Limitation Act 1969* (NSW) as they were advanced more than six years prior to the proceedings. Regarding the wife's advances to her son for living expenses, the court declined to add them back, noting the husband's knowledge and the understanding of repayment from a legal claim. The court also determined that it was inappropriate to deal with the parties' gambling and horse racing expenditures by way of addback due to the inability to quantify the amounts precisely, and therefore no adjustment would be made under section 75(2)(o) of the *Family Law Act 1975* (Cth) to compare their relative spending. The court also noted that proceeds from the sale of a thoroughbred were already accounted for and that funds held in trust for legal fees would be dealt with separately.

The court ordered a property settlement that included the husband paying a substantial sum to the wife, with adjustments to be made upon the sale of the former matrimonial home. The orders also addressed the transfer of rights to recover monies owed by the parties' respective children for loans guaranteed to the National Australia Bank, and the transfer of interests in various companies and jointly owned horses. The husband was also ordered to continue spousal maintenance payments to the wife until her property settlement was fully received.