Lovine & Connor

In *Lovine & Connor*, the Full Court of the Family Court of Australia considered competing applications for the alteration of property interests and an application concerning children's time. The dispute involved the division of the parties' assets and the appropriate arrangements for their child, with the father seeking orders for equal time and the mother seeking orders for substantial and significant time.

The court was required to determine several key legal issues. These included the appropriate method for identifying and valuing the parties' asset pool, specifically how to treat the husband's interest in a testamentary trust. The court also had to consider whether to make add-backs for legal fees incurred by one party and the relevance of potential capital gains tax liabilities. Furthermore, the court was tasked with assessing the parties' contributions, both initial and ongoing, and their respective future needs in determining the property settlement. In relation to the children's matters, the court had to consider the father's availability as a factor in determining the child's best interests.

The Full Court applied the principles of the *Family Law Act 1975* (Cth) to the property settlement, undertaking a four-step process. This involved identifying the net value of the parties' property, assessing their contributions and future needs, and then making such orders as are just and equitable. The court determined that the husband's interest in the testamentary trust was a financial resource rather than a vested asset, and its value was to be considered in light of the likelihood of distribution. The court also found that add-backs for legal fees were not warranted in the circumstances, and that potential capital gains tax liabilities should be discounted. In relation to the children's matters, the court emphasised that the child's best interests were paramount and that the father's availability was a relevant consideration in determining the time the child spent with each parent.

The Full Court made orders for a property settlement and specific parenting arrangements for the child.