KEARNEY & DILLON

In the Family Court of Australia, Mr Kearney (husband) and Ms Dillon (wife) sought an alteration of their property interests following the breakdown of their relationship, pursuant to section 79 of the *Family Law Act 1975* (Cth). The parties cohabited for approximately nine and a half years and have two children, aged eight and six. The proceedings also involved applications concerning children's matters, spouse maintenance, and child support departure.

The court was required to determine several legal issues. These included the division of the parties' property interests, considering their contributions both before and after separation, and the relevant factors under section 75(2) of the *Family Law Act 1975* (Cth), particularly the husband's greater earning capacity. Additionally, the court had to consider orders for parental responsibility and time spent with the children, the wife's claim for spouse maintenance, and applications by both parties for a departure from the assessed child support payments under the *Child Support (Assessment) Act 1989* (Cth).

Regarding property settlement, the court ordered that the wife pay the husband $481,238 within 60 days. Simultaneously, the husband was to transfer his interest in the property at Suburb V, New South Wales, to the wife, and the wife was to procure the discharge of the husband's obligations under the Commonwealth Bank loan secured by that property. The wife was also to pay her share of a joint debt to Mr and Mrs K and procure the husband's discharge from a joint line of credit liability, indemnifying him against it. In the event the wife failed to make the payment within 60 days, the Suburb V property was to be sold, with proceeds distributed in a specific priority, including payment of sale costs, discharge of debts, repayment of $190,000 to Mr and Mrs K, and then distribution of the balance with 65% to the wife and the remainder to her, followed by a payment of $217,410 to the wife, with any final balance going to the husband. The wife was also ordered to indemnify the husband regarding a loan from her mother. The court dismissed the wife's spouse maintenance application, finding the threshold test under section 72 of the *Family Law Act 1975* (Cth) was not met. Applications for child support departure were also declined. The parties consented to orders for equal shared parental responsibility, with the children living with the wife ten nights per fortnight and the husband four nights per fortnight. The court declined the husband's request for a gradual increase to equal time but made orders for a gradual increase to substantial and significant time with the husband.