JACK & JOSIPOVIC

In the matter of *Jack & Josipovic*, heard by McClelland J, the dispute concerned the division of property between an applicant wife and a respondent trustee in bankruptcy. The core of the disagreement revolved around the court's power to make orders altering the interests of a trustee in bankruptcy, particularly in relation to superannuation which was not included as divisible property of the bankrupt estate.

The court was required to determine whether it possessed the authority under section 79 of the *Family Law Act 1975* (Cth) to make orders that would adjust the legal and equitable titles of the parties, specifically impacting the trustee in bankruptcy. A further issue was the extent to which the court could direct the disbursement of funds held in a controlled monies account in the joint names of the parties, and the release of claims between the parties concerning the vested bankruptcy property.

McClelland J applied the principles of section 79 of the *Family Law Act* to facilitate a consent order between the parties. The court's reasoning, as reflected in the orders, was to adjust the parties' respective interests in the controlled monies account to resolve the claims. The respondent trustee was to receive $265,000, with the balance to be disbursed to the applicant wife. Both parties were to release each other from any claims concerning the vested bankruptcy property of Mr B Jack, and the applicant wife was to retain all other property and financial resources.

By consent, the court ordered the disbursement of funds from the controlled monies account, the mutual release of claims regarding the bankruptcy property, and that the applicant wife retain her other assets. The proceedings were otherwise dismissed with no order as to costs. The court noted that the sum ordered to be paid to the respondent reflected the parties' agreed position on existing beneficial interests, thereby disposing of the relief sought in the Federal Court proceedings that had been transferred.