KOVACIC & WALSWORTH

In the matter of Kovacic & Walsworth, Judge O'Sullivan of the Federal Circuit Court of Australia considered an application for property settlement following the breakdown of a de facto relationship. The proceedings were brought by the applicant, who sought final property orders. The respondent failed to participate in the proceedings, leading to the dismissal of their response and the applicant being granted leave to proceed undefended.

The court was required to determine the appropriate property orders to be made, considering the respondent's non-compliance with the court's process. Specifically, the court had to assess what orders were just and equitable to make under Part VIIIAB of the Family Law Act 1975 (Cth), which governs property settlements in de facto relationships. This involved considering the financial and non-financial contributions of each party, the welfare of any children, the effect of any proposed orders on the parties' earning capacities, and any other relevant circumstances.

The court's reasoning was informed by Section 90SM of the Family Law Act 1975 (Cth), which empowers the court to alter the property interests of parties to a de facto relationship where it is just and equitable to do so. Given the respondent's failure to engage with the proceedings, the court proceeded to make orders based on the evidence presented by the applicant. The court ultimately ordered the respondent to pay a sum of $140,000 to the applicant by way of alteration of property interest and to pay the applicant's costs. In the event of non-compliance with these orders, the court provided for the sale of a specified property, with the proceeds to be disbursed in a particular order of priority, including the satisfaction of the monetary orders and costs. The court also made provisions for the Registrar to execute documents if a party refused to do so, and otherwise ordered that each party retain their existing property and be solely liable for any liabilities associated with it.