Moller and Whitman

In the matter of *Moller and Whitman*, Berman J considered an application to vary existing orders concerning property settlement. The dispute involved the husband and wife, who were parties to proceedings for property settlement and spousal maintenance, and a third party, Ms C, who was to take over the role of trustee of the B Family Trust. The core of the dispute revolved around the transfer of shares in the trustee company, the resignation of the husband and wife as directors and appointor, and the terms of compensation and indemnity to be provided by Ms C.

The court was required to determine the terms of interim property settlement, specifically how the B Family Trust and its associated assets and liabilities would be managed and transferred pending final resolution of the property settlement and spousal maintenance proceedings. Key legal issues included the conditions under which the shares in the trustee company should be transferred to Ms C, the necessary resignations and appointments of directors and appointors, the indemnification of the parties for their debit loan accounts with the trust, and the forfeiture of their interests in the trust. Furthermore, the court had to determine the amount and distribution of compensation payable by Ms C for the transfer of the trust, and how this compensation would be brought into account in the final property settlement.

Berman J ordered that the existing orders be varied to facilitate an interim property settlement. This involved the transfer of shares in the trustee company, B Pty Ltd, to Ms C, conditional upon her providing an indemnity to the parties regarding their debit loan accounts and any third-party loans. The husband and wife were to resign as directors of the trustee company, and the husband was to resign as appointor, with Ms C or her nominee to be appointed. The parties were to be indemnified for their respective debit loan accounts with the trust, and they were to forfeit any current or future interest in the trust. Crucially, Ms C was to pay $384,288 in compensation, with $184,288 to be paid to the National Australia Bank for the husband, subject to an injunction restraining him from accessing these funds without court consent or party agreement, and $200,000 to Mellor Olsson Trust Account for the husband. This compensation amount was to be brought into account in the final property settlement proceedings, considering the trust's value at trial.