KOSTAS & KOSTAS

In the matter of *Kostas & Kostas*, Rees J of the Federal Circuit Court of Australia considered an application for adjustment of property interests following a long marriage. The dispute arose in circumstances where the husband had failed to make full disclosure of material matters, rendering it impossible to quantify the extent of his receipts or expenditures. The husband's conduct was also characterised by significant non-compliance with previous court orders.

The court was required to determine the appropriate property adjustment, considering the husband's non-disclosure and non-compliance. A further issue before the court was an application made by the husband for the disqualification of the presiding judge, based on the judge's decision to reject a late-filed affidavit and not permit the re-opening of the husband's evidence.

Rees J reasoned that in light of the husband's persistent non-compliance and lack of transparency, it was not practicable or beneficial to make orders for the wife to retain a property located in Country D. Instead, the court ordered that the husband would retain the Country D property and be afforded an opportunity to purchase the wife's interest in the former matrimonial home. The court found no basis for the apprehended bias alleged by the husband, concluding that a fair-minded lay observer would not reasonably perceive bias from the rejection of the late affidavit and the refusal to re-open evidence. The application for disqualification was therefore dismissed.

The court made specific orders regarding the transfer of property interests and financial settlements. The husband was ordered to pay the wife $460,000 by a specified date and simultaneously transfer the wife's interest in the former matrimonial home to him. Should the husband fail to make this payment, the wife was appointed Trustee for Sale of that property, with the net proceeds to be retained by her. The husband was also ordered to vacate the property to facilitate its sale. The court further ordered the transfer of the wife's interest in two apartments in Country D to the husband, at his expense. Finally, the court directed that a copy of the reasons be forwarded to the Legal Services Commission concerning the conduct of the husband's solicitors.