NORWOOD & LUCK

In the matter of *Norwood & Luck*, Rees J of the Family Court of Australia considered a dispute concerning the disposition of funds from a company operated by the husband and wife, and related injunctive relief. The proceedings involved an application by the husband to re-open interim proceedings, which was not opposed. A key element of the dispute was the wife's withdrawal of funds from the company without prior notice to the husband, which she used to meet her tax liabilities and other joint expenses.

The court was required to determine the appropriate orders for the management and distribution of the company's income, including the priority of payments. It also had to consider whether the wife should be required to refund the amounts she had withdrawn from the company. Furthermore, the court addressed the husband's application to re-open the interim proceedings and the appropriateness of restraining the husband from diverting business or income away from the company.

Rees J applied principles of family law concerning property division and injunctive relief under s 114 of the *Family Law Act 1975* (Cth). The court ordered that the company, as trustee of the family trust, was to make specific monthly payments in a defined priority, commencing with the company's overheads, followed by mortgage and property expenses, health insurance, supervision costs for parenting orders, and finally, a specified sum to each party. The court also ordered that any remaining funds were to be retained in the company's accounts unless otherwise agreed. Crucially, the wife was not required to refund the amounts she had used for tax liabilities and joint expenses. The husband was ordered to provide an affidavit detailing the expenditure of funds transferred from the business account and was restrained from diverting business or engaging in transactions outside the company.