KELLY & KELLY

In *Kelly & Kelly*, Cleary J considered a property settlement dispute between a husband and wife. The husband was the primary income earner, deriving additional income from managing his share portfolio through specialist skill and expertise. The wife's primary role was the day-to-day care of the children and household, and she supported the husband in his employment.

The court was required to determine how to divide the parties' assets, taking into account their respective contributions, earning capacities, and the practical implications of asset realisation. Key issues included the wife's entitlement to a portion of the husband's superannuation, a significant cash payment to the wife, and the allocation of other personal property. The court also had to consider the impact of capital gains tax liability arising from the husband's potential sale of shares to purchase a home for the children, and whether this liability should be excluded from the asset pool and adjusted for.

Cleary J applied principles of property settlement under the *Family Law Act 1975* (Cth). The court recognised the husband's financial contributions, including those from his share portfolio, and the wife's non-financial contributions as homemaker and caregiver. The court ordered a significant allocation from the husband's superannuation to the wife, along with a substantial cash payment. Crucially, the court excluded the capital gains tax liability from the asset pool, making an adjustment to account for this potential cost. The court also declared each party the sole owner of items in their possession.