PAGANIS & PAGANIS

In the matter of *Paganis & Paganis*, heard before Judge Obradovic, the applicant wife, Ms Paganis, sought orders concerning the sale of a property and the management of the respondent husband, Mr Paganis', financial affairs. The dispute centred on Mr Paganis' alleged failure to meet financial obligations, including a significant debt to the Australian Taxation Office and monthly loan repayments, which placed the marital property at risk.

The court was required to determine whether to appoint the applicant wife as the sole trustee for the sale of the parties' property. This appointment was contingent upon Mr Paganis' failure to comply with specific orders regarding the payment of a joint loan and his disclosure and management of his tax debt. The court also had to consider the terms under which the property would be sold, including the method of sale, the appointment of professionals, and the distribution of sale proceeds.

Judge Obradovic reasoned that the appointment of the wife as trustee was a necessary measure to protect the asset and ensure its sale if the husband failed to meet his obligations. The court outlined specific triggers for this appointment, including the husband's default on loan repayments for a specified period, failure to comply with disclosure orders concerning his tax debt, or the initiation of sequestration proceedings or similar actions by creditors. The court further detailed the process for the sale, including the husband's obligation to vacate the property and a prohibition against him impeding the sale. The net proceeds were to be distributed in a defined order of priority, commencing with sale expenses, then capital gains tax, followed by the discharge of mortgages, with any remaining balance to be held in a controlled monies account pending further order.

The court ordered that Mr Paganis was to make monthly loan repayments and provide written confirmation of these payments to Ms Paganis. He was also required to notify Ms Paganis immediately upon receipt of any legal action concerning his tax debt and authorise her to receive correspondence from the ATO and his advisors regarding this debt. If Mr Paganis failed to comply with these orders, Ms Paganis was appointed as the sole trustee for the sale of the property. The court also made orders regarding the sale process, the husband's vacating the property, and the distribution of sale proceeds, with costs reserved.