Karllson and Karllson - [2014] FamCA 571

FAMILY COURT OF AUSTRALIA

KARLLSON & KARLLSON

[2014] FamCA 571

FAMILY LAW – PROPERTY – Interim Orders – Valuation – where wife sought orders that the parties jointly instruct an expert to value entities – husband’s degree of control over entities unclear – husband asserts only a bare legal right to due administration – issue to be determined at final hearing – valuations to be undertaken and the evidence dealt with at trial – orders made for valuation of entities.

Family Law Act 1975 (Cth) s 79, 75

Dillon & Dillon [2012] FamCA 319
Grace & Grace (1998) FLC 92-792
Kennon & Spry (2008) 238 CLR 366
Federal Commissioner of Taxation v Vegners (1989) 90 ALR 547
The Hon Justice Paul Brereton AM RFD, ‘The High Court and family law: Two recent excursions’(2013) 3 Family Law Review 63

APPLICANT:

Mr Karllson

RESPONDENT:

Ms Karllson

FILE NUMBER:

ADC

2013

DATE DELIVERED:

25 July 2014

PLACE DELIVERED:

Adelaide

PLACE HEARD:

Adelaide

JUDGMENT OF:

Dawe J

HEARING DATE:

15 July 2014

REPRESENTATION

COUNSEL FOR THE APPLICANT:

Mr Strum

SOLICITOR FOR THE APPLICANT:

Mills Oakley Lawyers

COUNSEL FOR THE RESPONDENT:

Ms Pyke QC

SOLICITOR FOR THE RESPONDENT:

Norman Waterhouse

Orders

The parties jointly instruct Mr M to include assessment and values of the following in his valuation:
(a) The Karllson Trust and N Pty Ltd; and
(b) The husband’s interests in the Karllson Trust and N Pty Ltd

IT IS NOTED that publication of this judgment by this Court under the pseudonym Karllson & Karllson has been approved by the Chief Justice pursuant to s 121(9)(g) of the Family Law Act 1975 (Cth).

FAMILY COURT OF AUSTRALIA AT ADELAIDE

FILE NUMBER: ADC 43 of 2013

Mr Karllson

Applicant

And

Ms Karllson

Respondent

REASONS FOR JUDGMENT

Introduction

The parties have accumulated significant assets during the course of their marriage. Considerable effort and costs have been expounded by both parties in an attempt to identify and value those assets. This judgment concerns the wife’s attempts to include the Karllson Trust and N Pty Ltd within the valuation of entities collectively known as the Karllson Group.

Background

The husband is 51 years of age and is a self-employed property investor and developer. The wife is 47 years of age and while previously employed as a solicitor she now cares for the parties’ young children.
The parties commenced cohabitation in 2000 and married in 2006. There are two children of the marriage, namely B and C aged 7 and 3 years respectively.
The parties separated in September 2010. The husband left the former matrimonial home. Following separation the children remained in the primary care of the wife but have spent regular time with their father. The parenting arrangements have been the subject of extensive litigation not relevant for the purpose of this judgment.
On 4 January 2013 the wife filed an Initiating Application seeking final orders in respect of both parenting and financial matters. Specifically the wife sought a final property distribution such that the husband…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Karllson and Karllson

Details

AGLC: Karllson and Karllson [2014] FamCA 571
Case: [2014] FamCA 571
Decision Date: 25 July 2014

CaseChat Overview and Summary

In the matter of *Karllson and Karllson*, Dawe J of the Family Court of Australia considered a dispute between the parties concerning the valuation of certain assets. The central issue revolved around the extent and nature of the husband's interests in the Karllson Trust and N Pty Ltd, and how these should be assessed for the purposes of property settlement proceedings.

The court was required to determine the appropriate methodology for valuing the husband's interests in the Karllson Trust and N Pty Ltd. This involved considering whether these entities should be treated as separate assets or as part of a larger pool of matrimonial property, and how their value should be ascertained in light of the husband's potential control or beneficial entitlement.

Dawe J directed that the parties jointly instruct a single expert, Mr M, to conduct a valuation. This valuation was to specifically include an assessment and determination of the value of the Karllson Trust and N Pty Ltd, as well as the husband's interests within them. This approach aimed to ensure a consistent and independent assessment of these complex assets, facilitating a more informed resolution of the property dispute.

Orders

Orders of the court

The parties jointly instruct Mr M to include assessment and values of the following in his valuation:

(a) The Karllson Trust and N Pty Ltd; and

(b) The husband’s interests in the Karllson Trust and N Pty Ltd

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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