Monaghan v Monaghan; Monaghan v Monaghan

In Monaghan v Monaghan, the Full Court of the Family Court of Australia considered two related matters. The first involved an application by the deceased’s former wife for approval of a release under the Succession Act 2006, section 95, and the second involved a request by the deceased’s current wife for judicial advice under the Trustee Act 1925, section 63. The deceased had not entered into a matrimonial property settlement with either wife. The central dispute revolved around the validity and approval of releases given by both the former and current wives, and the interpretation of the deceased's memorandum of wishes regarding the distribution of trust assets.

The court had to determine whether the releases provided by the former and current wives should be approved, and if the trustee was justified in exercising the power to vest the trust and distribute the assets according to the settlement. A further issue was whether the deceased's memorandum of wishes could be considered in deciding the distribution of the trust assets, particularly as it aligned with the settlement ultimately reached between the parties.

The Full Court concluded that the releases provided by both the former and current wives should be approved, finding them to be fair and reasonable. The court also held that the memorandum of wishes could be taken into account, as it was consistent with the settlement and provided guidance on the deceased's intentions regarding the distribution of the trust assets. The Full Court directed the trustee to vest the trust and distribute the assets in accordance with the settlement reached by the parties, as this was in line with the deceased’s expressed wishes and was fair and reasonable.

The final orders of the court were that the releases provided by both the former and current wives should be approved, and the trustee was directed to distribute the trust assets in accordance with the settlement. The Full Court further held that the memorandum of wishes could be considered in making this decision, providing a clear path for the trustee to follow in distributing the trust assets.