FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 1)
Kenyatta & Borghi [2024] FedCFamC1F 300
File number(s): SYC 7834 of 2021 Judgment of: ALTOBELLI J Date of judgment: 10 May 2024 Catchwords: FAMILY LAW – PROPERTY – Short marriage – Where there are five properties on the balance sheet – Where both parties wish to retain the Suburb B property – Where the wife’s parents have provided financial assistance throughout the years – Issues of non-disclosure – It is ordered that property be divided as to 62.5:37.5 in the wife’s favour. Legislation: Family Law Act 1975 (Cth) ss 75, 79 Cases cited: Bevan & Bevan (2013) FLC 93-545; [2013] FamCAFC 116
CCD & AGMD (2006) FLC 93-300; [2006] FamCA 1291
Hickey and Hickey and Attorney General for the Commonwealth of Australia (Intervener) (2003) FLC 93-143; [2003] FamCA 395
NHC & RCH (2004) FLC 93-204; [2004] FamCA 633
Stanford v Stanford (2012) 247 CLR 108; [2012] HCA 52
Trevi & Trevi [2018] FamCAFC 173
Division: Division 1 First Instance Number of paragraphs: 70 Date of last submission/s: 10 April 2024 Date of hearing: 8–10 April 2024 Place: Sydney Counsel for the Applicant: Ms McMahon Solicitor for the Applicant: O’Sullivan Legal Counsel for the Respondent: Mr Antill Solicitor for the Respondent: Jurisbridge Legal ORDERS
SYC 7834 of 2021 FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
BETWEEN: MS KENYATTA
Applicant
AND: MR BORGHI
Respondent
ORDER MADE BY:
ALTOBELLI J
DATE OF ORDER:
10 MAY 2024
THE COURT ORDERS THAT:
1.Within 28 days from the date of these orders, the Respondent Husband (“the Husband”) is to do all acts and things and sign all documents necessary to transfer to the Applicant Wife (“the Wife”) Motor Vehicle 1 (“Motor Vehicle 1”) including all insurance policies and the Wife pay all costs associated with the transfer of Motor Vehicle 1.
The Suburb C property
2.Within 60 days of the date of these orders, the Husband shall do all such things and sign all such deeds, documents, authorities and instruments as may be necessary to transfer to the Wife all his right title and interest in the property situated at and known as D Street, Suburb C NSW (“the Suburb C property”) being the whole of the land and all its improvements contained in folio identifier ….
3.Simultaneously with the said transfer referred to in Order 2 above, the Wife shall do all such acts and things and sign all such deeds, documents, authorities and instruments as may be necessary to refinance the existing mortgage secured over the Suburb C property into her sole name PROVIDED HOWEVER that the Husband shall sign and return the appropriate discharge authority within seven days of same being submitted to him.
4.In the event the Wife is unable to refinance the mortgage of the Suburb C property within 60 days of the transfer referred to in Orders 2 and 3, the parties shall list the Suburb C property for sale in accordance with the machinery provisions contained in…
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- Kenyatta & Borghi [2024] FedCFamC1F 300
- Case
- [2024] FedCFamC1F 300
- Decision Date
CaseChat Overview and Summary
The legal issues the court needed to address involved assessing the financial and non-financial contributions of each party to the marriage, the effect of any proposed division on the earning capacity of either party, and the overall fairness of the property division. The court had to consider the factors outlined in section 79 of the Family Law Act 1975 (Cth), including the contributions made to the acquisition, conservation, or improvement of the properties, and the contributions to the welfare of the family.
The court's reasoning led to an order that the property be divided in a 62.5:37.5 ratio in favor of the wife. The specific orders included the transfer of certain properties to each party, the sale of other properties with the proceeds divided according to the ratio, and the division of proceeds from joint accounts. Notably, the court ordered the husband to transfer a specific sum of money to the wife and directed that certain properties be listed for sale if refinancing could not be achieved within a set timeframe. The orders also included provisions for the discharge of existing mortgages and the payment of various debts and costs associated with the sale of the properties.
In summary, the court's decision aimed to achieve a fair and equitable division of the marital property, taking into account the various contributions and circumstances of the parties.
Orders
Orders of the court
SYC 7834 of 2021
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
BETWEEN:
MS KENYATTA
Applicant
AND:
MR BORGHI
Respondent
ORDER MADE BY:
ALTOBELLI J
DATE OF ORDER:
10 MAY 2024
THE COURT ORDERS THAT:
1. Within 28 days from the date of these orders, the Respondent Husband (“the Husband”) is to do all acts and things and sign all documents necessary to transfer to the Applicant Wife (“the Wife”) Motor Vehicle 1 (“Motor Vehicle 1”) including all insurance policies and the Wife pay all costs associated with the transfer of Motor Vehicle 1.
The Suburb C property
2. Within 60 days of the date of these orders, the Husband shall do all such things and sign all such deeds, documents, authorities and instruments as may be necessary to transfer to the Wife all his right title and interest in the property situated at and known as D Street, Suburb C NSW (“the Suburb C property”) being the whole of the land and all its improvements contained in folio identifier ….
3. Simultaneously with the said transfer referred to in Order 2 above, the Wife shall do all such acts and things and sign all such deeds, documents, authorities and instruments as may be necessary to refinance the existing mortgage secured over the Suburb C property into her sole name PROVIDED HOWEVER that the Husband shall sign and return the appropriate discharge authority within seven days of same being submitted to him.
4. In the event the Wife is unable to refinance the mortgage of the Suburb C property within 60 days of the transfer referred to in Orders 2 and 3, the parties shall list the Suburb C property for sale in accordance with the machinery provisions contained in Orders 16 and 17 herein, save that the Wife shall receive the total sale proceeds, and further save that reference to the “property” is to be substituted with reference to the “Suburb C property”.
The Suburb F property
5. Within 60 days of the date of these orders, the parties shall do all such acts and things and sign all such deeds, documents, authorities and instruments as may be necessary to refinance the existing mortgage to the Husband secured over the property situated at and known as G Street, Suburb F NSW (Folio Identifier: …) (“the Suburb F property”) into his sole name PROVIDED HOWEVER that the Wife shall sign and return the appropriate discharge authority within seven days of same being submitted to her.
6. In the event the Husband is unable to refinance the mortgage of the Suburb F property into his own name within 60 days, the Husband shall list the Suburb F property for sale in accordance with the machinery provisions contained in Orders 16 and 17 herein, save that the Husband shall receive the total sale proceeds, and further save that reference to the “property” is to be substituted with reference to the “Suburb F property”.
The Suburb B property
7. Within 60 days of the date of these orders, the Husband is to transfer the sum of $446,852.75 to the Wife.
8. Simultaneously with Order 7, the Wife shall do all such things and sign all such deeds, documents, authorities and instruments as may be necessary to transfer to the Husband all his right title and interest in the property situated at and known as H Street, Suburb J NSW (“the Suburb B property”) being the whole of the land and all its improvements contained in folio identifier ….
9. Simultaneously with the said transfer in Order 7 above, the Husband shall do all such acts and things and sign all such deeds, documents, authorities and instruments as may be necessary to refinance the existing mortgage secured over the Suburb B property into his sole name PROVIDED HOWEVER that the Wife shall sign and return the appropriate discharge authority within seven days of same being submitted to her.
10. In the event the Husband is unable to pay the transfer of the sum in Order 7 or refinance the mortgage of the Suburb B property within 60 days of the transfer referred to in Orders 8 and 9, the Husband shall list the Suburb B property for sale in accordance with the machinery provisions contained in Orders 16 and 17 herein, save that out of the net proceeds of sale, $549,994.63 is to be given to the Wife and the balance to the Husband, and further save that reference to the “property” is to be substituted with reference to the “Suburb B property”.
The Suburb K property
11. Within 14 days of these orders, the Wife is to elect whether she wishes to retain the property situated at and known as L Street, Suburb K NSW (“the Suburb K property”).
12. If she does wish to retain the Suburb K property:
(a) Within 60 days of the Wife informing the Husband that she wishes to retain the property, the Husband shall do all such things and sign all such deeds, documents, authorities and instruments as may be necessary to transfer to the Wife all her right title and interest in the Suburb K property being the whole of the land and all its improvements contained in folio identifier …;
(b) Simultaneously with the said transfer referred to in Order 12(a) above, the Wife shall do all such acts and things and sign all such deeds, documents, authorities and instruments as may be necessary to refinance the existing mortgage secured over the Suburb K property into her sole name PROVIDED HOWEVER that the Husband shall sign and return the appropriate discharge authority within seven days of same being submitted to him; and
(c) Simultaneously with the said transfer, the Wife is to transfer to the Husband the sum equivalent to 37.5 per cent of the value of the Suburb K property pursuant to the joint balance sheet.
13. If she does not wish to retain the Suburb K property or in the event the Wife is unable to refinance the mortgage of the property or transfer the sum equivalent to 37.5 per cent of the value of the property to the Husband referred to in Order 12(c) then:
(a) The parties shall list the Suburb K property for sale in accordance with the machinery provisions contained in Orders 16 and 17 herein, save that reference to the “property” is to be substituted with reference to the “Suburb K property”, and further save that the balance of the net proceeds of sale are to be divided 62.5 per cent to the Wife and 37.5 per cent to the Husband.
The Suburb M property
14. Upon the completion of the sale of the property situated at and known as N Street, Suburb M NSW (“the Suburb M property”) by private treaty, the parties shall distribute the proceeds of sale, in the following order and priority:
(a) In discharge of the mortgage presently encumbering the Suburb M property;
(b) In discharge of any outstanding council, strata and water rates;
(c) In payment of real estate agents’ proper commission arising from the sale;
(d) In payment of proper legal costs and expenses arising from the sale;
(e) In payment of any other expenses which may have been reasonably incurred in respect of such sale, including valuer’s fees if appropriate; and
(f) In payment of the balance as follows:
(i) 62.5 per cent to the Wife; and
(ii) 37.5 per cent to the Husband.
15. In the event that the Suburb M property is not sold by private treaty within three (3) months, the property shall be listed for sale by auction in accordance with the machinery provisions in accordance with Orders 16 and 17 herein, save that reference to the “property” is to be substituted with reference to the Suburb M property, and further save that the balance of the net proceeds of sale should be divided as to 62.5 per cent to the Wife and 37.5 per cent to the Husband.
Machinery Provisions
16. In the event that it is necessary for the sale of one of the above-mentioned properties, the property shall be sold subject to the following conditions:
(a) Within 60 days, the person(s) whose name is on the title of the property is to engage a real estate agent for the purposes of the sale and where the property is held in joint names the following shall apply:
(i) The parties are to engage such real estate agent for the purposes of the sale as is agreed between them or, failing agreement, the Wife is to nominate three real estate agents (“the nominated agents”) to the Husband and, within seven days after that nomination is made, the Husband is to select one of the nominated agents (“the selected agent”) and the parties are to engage the selected agent.
(b) Within 75 days, the person(s) whose name is on the title of the property is to engage a solicitor to undertake the legal work associated with the sale and where the property is held in joint names the following shall apply:
(i) The parties engage a solicitor to undertake the legal work associated with the sale as is agreed by them or, failing agreement, the Wife is to nominate three solicitors (“the nominated solicitors”) to the Husband and, within seven days after that nomination is made, the Husband is to select one of the nominated solicitors (“the selected solicitor”) and the parties are to engage the selected solicitor.
(c) The property is to be sold by auction, unless otherwise agreed between the parties, with such auction to take place within six weeks after the property is placed on the market for sale;
(d) In the event the property is held in joint names by the parties, the property shall be listed for sale at a price agreed between the parties and failing agreement the parties shall instruct the selected agent to provide the parties a recommended listing price or price range and the property shall be listed for sale as per that recommendation;
(e) The auctioneer shall be nominated by the selected agent marketing the property in the event there is no agreement;
(f) If the property is held in joint names by the parties, they shall do all acts and sign all documents and authorities necessary to ensure that the selected agent nominated to act in relation to the sale is instructed to liaise at all times and in all respects pertaining to the sale with both parties, and that this instruction include but not be limited to both parties executing the agency agreement, taking their instructions and relaying offers to purchase the property to both parties; and
(g) In the event that the property is not sold at the first auction held for its sale, then the parties are to do all acts and things and sign all documents necessary to arrange for a second auction to take place within two months of the first auction, at which auction, unless otherwise agreed by the parties, the property is to be sold to the highest bidder.
17. Upon the completion of the sale of the property in accordance with Order 16 herein above the parties shall distribute the proceeds of sale in the following order and priority:
(a) In discharge of the mortgage presently encumbering the property;
(b) In discharge of any outstanding council and water rates;
(c) In payment of real estate agents’ proper commission arising from the sale;
(d) In payment of proper legal costs and expenses arising from the sale;
(e) In payment of any other expenses which may have been reasonably incurred in respect of such sale;
(f) In payment of any other debts and/or outgoings associated with the property, including any capital gains tax payable by the party acquiring the property in accordance with these orders on the sale of the property; and
(g) In payment to the parties in accordance with the relevant Order above.
Other
18. Within 14 days of the date of these orders, the parties shall do all acts and sign all documents necessary to close all joint account held between them, and simultaneously with the same, to divide the proceeds evenly between them.
19. Save as otherwise provided in these orders the Wife shall be declared the sole owner both at law and in equity of:
(a) The Suburb C property;
(b) Her motor vehicle;
(c) Any chattels, goods, furnishings and other property of whatsoever kind or nature which are, as at the date of the orders, in her possession; and
(d) Any monies, shares, debentures, employee emoluments and superannuation entitlements, which stand in her sole name as at the date of the orders.
20. Save as otherwise provided in these orders the Husband shall be declared the sole owner both at law and in equity of:
(a) The Suburb F property;
(b) The Suburb B property;
(c) His motor vehicles inclusive of Motor Vehicle 2;
(d) His company, O Pty Ltd;
(e) Any chattels, goods, furnishings and other property of whatsoever kind or nature which are, as at the date of the orders, in his possession; and
(f) Any monies, shares, debentures, employee emoluments and superannuation entitlements, which stand in his sole name as at the date of the orders.
21. Except as specifically provided for by any order to the contrary, as against the Husband, the Wife is the sole owner of, and the Husband has no interest in, all personal property (including choses in action) or other property of whatsoever nature and kind in the possession or name of the Wife at the date of the making of this order.
22. Except as specifically provided for by any order to the contrary, as against the Wife, the Husband is the sole owner of, and the Wife has no interest in, all personal property (including choses in action) or other property of whatsoever nature and kind in the possession or name of the Husband at the date of the making of this order.
23. Each party retains their respective superannuation.
24. Except as specifically provided for by any order to the contrary:
(a) The Husband shall indemnify the Wife from and in respect of all actions, claims, suits and demands as may be made against the Wife in relation to all liabilities in the name of the Husband; and
(b) The Wife shall indemnify the Husband from and in respect of all actions, claims, suits and demands as may be made against the Husband in relation to all liabilities in the name of the Wife.
25. Leave is granted to the parties to file consent orders in chambers within 14 days of the date of these orders.
26. Each party shall do all acts and things and sign all documents necessary to give effect to these orders whensoever and howsoever requested or required to do so as soon as practicable.
27. In the event that either party refuses or neglects to execute any deed, document or instrument necessary to give effect to these Orders, the Registrar of the Court be appointed pursuant to s 106A of the Family Law Act 1975 (Cth) to execute such deed, document or instrument in the name of the said party and do all acts and things necessary to give validity and operation to the deed, document or instrument upon the Registrar being provided with verification of such refusal or failure by way of affidavit.
Note: The form of the order is subject to the entry in the Court’s records.
Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
Background
Background to the litigation
Evidence
Evidence Before The Court
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
This is an application under s 79 of the Family Law Act 1975 (Cth) (“the Act”) which relevantly provides:79 Alteration of property interests(1)In property settlement proceedings, the court may make such order as it considers appropriate:(a)in the case of proceedings with respect to the property of the parties to the marriage or either of them—altering the interests of the parties to the marriage in the property; or(b)in the case of proceedings with respect to the vested bankruptcy property in relation to a bankrupt party to the marriage—altering the interests of the bankruptcy trustee in the vested bankruptcy property;including:(c)an order for a settlement of property in substitution for any interest in the property; and(d)an order requiring:(i) either or both of the parties to the marriage; or(ii) the relevant bankruptcy trustee (if any);to make, for the benefit of either or both of the parties to the marriage or a child of the marriage, such settlement or transfer of property as the court determines.…(2)The court shall not make an order under this section unless it is satisfied that, in all the circumstances, it is just and equitable to make the order.(4)In considering what order (if any) should be made under this section in property settlement proceedings, the court shall take into account:(a)the financial contribution made directly or indirectly by or on behalf of a party to the marriage or a child of the marriage to the acquisition, conservation or improvement of any of the property of the parties to the marriage or either of them, or otherwise in relation to any of that last‑mentioned property, whether or not that last‑mentioned property has, since the making of the contribution, ceased to be the property of the parties to the marriage or either of them; and(b)the contribution (other than a financial contribution) made directly or indirectly by or on behalf of a party to the marriage or a child of the marriage to the acquisition, conservation or improvement of any of the property of the parties to the marriage or either of them, or otherwise in relation to any of that last‑mentioned property, whether or not that last‑mentioned property has, since the making of the contribution, ceased to be the property of the parties to the marriage or either of them; and(c)the contribution made by a party to the marriage to the welfare of the family constituted by the parties to the marriage and any children of the marriage, including any contribution made in the capacity of homemaker or parent; and(d)the effect of any proposed order upon the earning capacity of either party to the marriage; and(e)the matters referred to in subsection 75(2) so far as they are relevant; and(f)any other order made under this Act affecting a party to the marriage or a child of the marriage; and(g)any child support under the Child Support (Assessment) Act 1989 that a party to the marriage has provided, is to provide, or might be liable to provide in the future, for a child of the marriage.