MALVARD & CAUDLE

Case [2020] FCCA 364


FEDERAL CIRCUIT COURT OF AUSTRALIA

MALVARD & CAUDLE [2020] FCCA 364
Catchwords:
FAMILY LAW – Property – Application for leave to apply for a property settlement out of time – relationship of 34 years – parties reached informal property settlement – Applicant Husband received significantly larger sum in the informal settlement – Applicant Husband made representations he would not pursue a formal settlement in light of parties’ informal agreement – where the Respondent Wife made significant financial decisions post-separation in reliance of the informal agreement – where the Applicant Husband does not establish any hardship – where allowing the Application to proceed would likely cause hardship to the Respondent – Application dismissed with costs.

Legislation:

Family Law Act 1975 (Cth), ss.44(3) & (4).

Cases cited:

MacKenzie v MacKenzie (1978) 4 Fam LR 374

McDonald v McDonald (1977) FLC 90-317

In the Marriage of Whitford (1979) 4 Fam LR 754; (1979) 24 ALR 424

Sharp v Sharp (2014) 50 Fam LR 567

Applicant: MR MALVARD
Respondent: MS CAUDLE
File Number: CAC 727 of 2019
Judgment of: Judge Neville
Hearing date: 22 August 2019
Date of Last Submission: 27 September 2019
Delivered at: Canberra
Delivered on: 27 February 2020

REPRESENTATION

Counsel for the Applicant: Ms M Davis
Solicitors for the Applicant: Farrell Lusher Solicitors, Town A
Counsel for the Respondent: Mr M Hassall
Solicitors for the Respondent: Meade Robson Steele, Adelaide

ORDERS

  1. The Applicant’s Initiating Application filed on 23rd April 2019 be dismissed.

  2. The Applicant is to pay the Respondent’s costs of and incidental to these proceedings as agreed or taxed.

  3. All extant Applications be dismissed, the matter finalised and removed immediately from the docket.

IT IS NOTED that publication of this judgment under the pseudonym Malvard & Caudle is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).

FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT CANBERRA

CAC 727 of 2019

MR MALVARD

Applicant

And

MS CAUDLE

Respondent

REASONS FOR JUDGMENT

Introduction

  1. By an Initiating Application, filed 23rd April 2019, pursuant to s.44(3) of the Family Law Act 1975 (“the Act”), the Applicant seeks to bring property proceedings out of time.  If leave is granted, he further seeks that there be a 50% split to him of the Wife’s superannuation.  In general terms this may amount to approximately $200,000.

  2. The parties married in 1982.  They separated in mid-2016.  A divorce Order was made on 29th August 2017.  There are two adult children of the relationship. 

  3. When the parties separated, they divided their non-superannuation assets informally on a 50/50 basis.

  4. The Applicant Husband is now in his late 60s, while the Respondent Wife is in her early 60s.

  5. The Wife resists the Application and seeks that it be dismissed with costs.  She does so primarily because she says that (a) in fact the informal property settlement between the parties was weighted in the Applicant’s favour, (b) she agreed to the informal settlement because it allowed her to keep her superannuation intact, and (c) she has relied upon the informal…

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AGLC
MALVARD & CAUDLE [2020] FCCA 364
Case
[2020] FCCA 364
Decision Date

CaseChat Overview and Summary

In *Malvard & Caudle*, heard before Judge Neville, the Applicant Husband sought leave to apply for a property settlement out of time following a 34-year relationship. The parties had reached an informal property settlement, with the Applicant Husband receiving a significantly larger sum. The Applicant Husband had allegedly represented that he would not pursue a formal settlement given this informal agreement. The Respondent Wife contended that she made significant financial decisions post-separation in reliance on this informal arrangement.

The central legal issue before the court was whether to grant the Applicant Husband leave to commence proceedings for a property settlement out of time, pursuant to section 44(6) of the *Family Law Act 1975* (Cth). This required the court to consider whether hardship would be occasioned to a party if leave were not granted, and conversely, whether hardship would be occasioned to a party if leave were granted.

Judge Neville dismissed the Applicant Husband's application, finding that he had not established any hardship that would warrant granting leave. Conversely, the court found that allowing the application to proceed would likely cause significant hardship to the Respondent Wife, who had acted in reliance on the informal settlement. The court applied the principles governing applications for leave to proceed out of time, emphasising the need to balance the interests of both parties and the potential for prejudice.

Consequently, the court ordered that the Applicant's Initiating Application be dismissed, with the Applicant to pay the Respondent's costs. All extant applications were dismissed, and the matter was finalised.

Orders

Orders of the court

1.

The Applicant’s Initiating Application filed on 23rd April 2019 be dismissed.

2.

The Applicant is to pay the Respondent’s costs of and incidental to these proceedings as agreed or taxed.

3.

All extant Applications be dismissed, the matter finalised and removed immediately from the docket.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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