Innes and Innes

This matter concerned an application before Coleman J concerning the division of property between a husband and wife. The central dispute revolved around the parties' respective interests in a property known as "W Street," which they held as tenants in common. The wife sought orders that would adjust the beneficial ownership of the husband's one-third interest in the property and provide for the payment of a sum of money to her, with alternative arrangements for the sale of the husband's interest if payment was not made.

The court was required to determine the appropriate distribution of the parties' interests in W Street, considering the existing legal title and the beneficial ownership. Key issues included the valuation of the husband's interest, the calculation of the wife's entitlement, and the mechanism for transferring or selling the husband's share. The court also had to address the allocation of liabilities associated with the property, including secured and unsecured debts, and potential capital gains tax implications.

Coleman J ordered that the husband hold his one-third interest in W Street upon trust for himself and the wife, with the beneficial ownership to be divided as to 71.71 per cent to the wife and 28.29 per cent to the husband. The husband was directed to pay the wife a specific sum of money within 60 days and to indemnify her against all liabilities related to the property. If the husband failed to make this payment, the wife had the option to acquire his interest by paying him a specified amount within a further 60 days, with subsequent indemnification obligations for the wife. In the event of mutual failure to comply with these payment provisions, the husband was to sell his interest, with the proceeds applied first to sale costs, then to discharge the secured encumbrance, followed by a provision for capital gains tax, and finally distributed according to the determined beneficial ownership percentages. The husband was entitled to rental income pending sale, provided he met all outgoings. Each party was to retain other property not specifically dealt with and to indemnify each other against other liabilities. Costs were reserved.