Malta & Malta and Ors (No. 3)

In *Malta & Malta and Ors (No. 3)*, the Honourable Justice Cronin considered a dispute involving the bankruptcy of one party to a marriage and the rights of creditors in relation to property settlement. The proceedings concerned the wife's estate, which had been made subject to a sequestration order.

The court was required to determine the extent of the wife's interest in certain farming property and how this interest should be treated in light of her bankruptcy and the claims of creditors. Specifically, the court needed to address the settlement of property between the husband and wife, taking into account the wife's contributions and the existence of her creditors.

Justice Cronin ordered that a sequestration order be made against the wife's estate. Pursuant to section 79 of the *Family Law Act 1975*, the husband was ordered to pay $210,000 to the trustee of the wife's estate by a specified date. Contemporaneously with this payment, the trustee was to transfer to the husband the wife's interest in a vacant property, water shares, and shares in a company, all at the husband's expense. The trustee was also to withdraw any caveats lodged by the wife affecting other land. Provisions were made for a Registrar to execute documents if the trustee was unable to do so. Further orders addressed the sale of property and disbursement of proceeds if the husband failed to comply with the payment order, and also discharged certain injunctions. The costs of the applicant and supporting creditors were to be paid from the wife's estate in accordance with the *Bankruptcy Act 1966*.