Khalif & Khalif

In *Khalif & Khalif*, the wife sought a declaration that the husband's brother held the former matrimonial home on constructive trust for the husband. The court made adverse credit findings against both the husband and his brother.

The primary legal issue was whether the evidence was sufficient to establish a constructive trust over the former matrimonial home, either based on a common intention or irrespective of the brother's intention.

Watts J found that the evidence established a common intention constructive trust. Alternatively, the court found that a constructive trust was established even without the brother's intention. The court declared that the husband held a 61.5 per cent beneficial interest in the property. The second respondent was ordered to transfer this interest to the husband as a tenant in common and to discharge mortgages and encumbrances to ensure they did not exceed 38.5 per cent of the property's value. The second respondent was also ordered to indemnify the husband against any mortgages or borrowings secured against the property. The husband was directed to notify his Trustee in Bankruptcy of these orders. The matter was relisted for further directions regarding the wife's claim under s 79 of the *Family Law Act 1975* (Cth) and any application for the judge's recusal.