Lloyd and Merritt

The Family Court of Australia, in the matter of *Lloyd & Merritt*, considered an application by the wife for the interim distribution of property, specifically the release of approximately $83,000 from a trust account representing the proceeds of the sale of the former matrimonial home. The husband initially sought a division of this sum, proposing a 65/35 split in his favour, citing shared care arrangements and the special needs of the youngest child. The wife sought the entire amount.

The primary legal issue before the court was whether to grant the wife's application for the full release of the $83,000, and consequently, the division of property. A secondary issue concerned the costs of the proceedings, arising from a dispute over the timing of an agreement to release the funds and the subsequent need for counsel to attend court. The court was required to determine if circumstances justified a departure from the general rule that parties bear their own costs.

Justice Cronin reasoned that based on the evidence before the court, including the wife's financial position and the husband's own disclosures regarding other assets, particularly shares in a company, the wife was entitled to the full $83,000. The court found that any division of this sum in the husband's favour would likely be temporary, as the wife would ultimately be entitled to more than this amount from the overall asset pool. Regarding costs, the court found that the husband's conduct in delaying the resolution of the property distribution until the last moment, necessitating the briefing of counsel, justified an order for costs against him. The court noted the unnecessary dispute over the timing of correspondence and the fact that the husband had been unsuccessful in his opposition to the wife receiving the full sum.

The court ordered that the husband pay the wife's costs fixed at $2,910, certifying that it was reasonable to engage counsel. The interim applications for property distribution were otherwise dismissed, with the wife receiving the $83,000.