Libbert and Libbert

In *Libbert and Libbert*, Stevenson J made orders concerning the division of property and the resolution of tax liabilities between the parties. The dispute involved the distribution of funds from a controlled monies account, the calculation and payment of tax referable to various asset sales and trust distributions, and the transfer of interests in a company and a trust.

The court was required to determine the precise amounts to be paid to each party from the controlled monies account, with a specific sum to be retained pending the resolution of tax matters. Further issues included the method for calculating the tax attributable to the sale of specific assets and trust distributions, the process for verifying this calculation if disputed, and the priority of payments from the retained funds to discharge this tax liability. The court also had to address the transfer of the wife's interests in a company and a trust to the husband, and the husband's indemnification of the wife against any liabilities arising from her past involvement with these entities.

Stevenson J ordered the immediate payment of specified sums to the husband and wife from the controlled monies account, retaining $200,000 pending the finalisation of tax calculations. The court detailed a comprehensive process for the husband's accountant to prepare and lodge tax returns, and to calculate the tax referable to specific asset sales and trust distributions within the 2017 financial year. This calculation was to be treated as the first income earned by the husband. Provision was made for an independent accountant to verify the tax calculation if the wife disputed it, with costs shared equally. The $200,000 was then to be applied first to discharge the referable tax, with the balance distributed 40% to the husband and 60% to the wife. If the $200,000 was insufficient to cover the tax, the shortfall was to be borne 40% by the husband and 60% by the wife. The orders also mandated the transfer of the wife's loan account balance and shareholding in C Pty Ltd to the husband, and her removal as a director. The wife was also required to transfer any loan account balance payable to her from the B Trust to the husband and disclaim all interest in the B Trust. The husband was to indemnify the wife against any liabilities arising from her past involvement with C Pty Ltd and the B Trust, and was to retain all rights to C Pty Ltd, D Ltd shares, and trust accounts held by the B Trust. Each party was declared solely entitled to all other property and superannuation in their possession and control.