Medlow and Medlow (No 2)

In *Medlow and Medlow (No 2)*, the applicant husband sought an interim property order for a disbursement of $2.9 million from the proceeds of a property sale. The husband intended to apply these funds towards other litigation and for unspecified purposes, while the respondent wife opposed the application, alleging the husband had failed to make full and frank disclosure. The matter came before Loughnan J in the Family Court of Australia.

The primary legal issue before the court was whether it was just and equitable to make an order for the interim distribution of funds, considering the husband's stated intentions and the wife's allegations of non-disclosure. The court was also required to determine the wife's application for interim costs.

Loughnan J reasoned that an interim distribution of funds, conservatively within the ambit of the parties' likely entitlements under section 79 of the *Family Law Act 1975* (Cth), could be made. The court granted the husband's application for an interim disbursement, noting that the proposed loan and its application were intended to align with previous orders made by the court. The wife's application for interim costs was also granted.

The court made orders reflecting the husband's application, including provisions for a loan of $1,250,000 to be paid into a trust account and invested, to be applied in accordance with previous orders. Upon settlement of the property sale, the proceeds were to be applied first to discharge the loan, then to sale costs, rates, a further $1,650,000 as per previous orders, with the balance to be held in an interest-bearing account pending further court order. The court also ordered payment of $173,188.39 to the wife's solicitors for interim costs. Otherwise, the court refused to make further orders at that time and granted leave to restore the proceedings to the list.