KINNEY & KINNEY

The parties, Mr. and Mrs. Kinney, brought their dispute concerning property settlement to the Federal Circuit and Family Court of Australia. The marriage was of short duration, and the core of their disagreement revolved around how their assets should be divided.

The court was required to determine the appropriate approach to property settlement in the context of a short marriage and to consider the application of section 81 of the *Family Law Act 1975* (Cth) to finally determine the financial relationship between the parties.

Judge McGuire adopted an asset-by-asset approach, which is often favoured in short marriages where there has been little or no pooling of resources. This approach involves each party retaining the assets and liabilities currently in their possession or control. The court further ordered that each party indemnify the other for any liabilities incurred since separation, whether in joint names or individually, and for any liabilities attaching to the assets they retained. These orders were made with the intention of finally determining the financial relationship between the parties and avoiding further proceedings, as mandated by section 81 of the *Family Law Act 1975*.