Patrice & Patrice and Ors

In the matter of *Patrice & Patrice and Ors*, the parties sought the Court's determination regarding the distribution of their property. The dispute involved complex financial arrangements, including trust assets, business valuations, legal fees, and the division of a jointly owned property. The case was heard by Faulks DCJ.

The primary legal issues before the Court included whether distributions made by one party, acting as the "alter ego" of a trust, constituted a debt owed by that party or by the trust itself, both legally and equitably. The Court was also required to consider the effect of different business valuation methods, specifically distinguishing between a "net assets" basis and a "maintainable earnings" basis, and how these valuations impacted the property pool. Further issues concerned the add-back of legal fees incurred by the parties, with a distinction drawn based on the source of funding for those fees, and the inclusion of tax debts as a liability where the evidence was not sufficiently established. The Court also addressed the valuation and distribution of a wine collection, where one party's attempts to value it were thwarted by the other's sale process.

The Court's reasoning involved carefully distinguishing between the legal and equitable ownership of assets, particularly in the context of trusts and business operations. It applied principles relating to the add-back of legal costs, considering the necessity and source of funds for those expenses. The Court also addressed the valuation of assets, noting that a "maintainable earnings" valuation could effectively remove certain transactions from the property pool. Regarding the wine collection, the Court ordered that the proceeds already obtained and any future proceeds be included in the property distribution, reflecting the impact of the sale process on its valuation. The Court's final orders detailed a comprehensive plan for the division of property, including the transfer of assets, the sale and division of proceeds from a jointly owned property, and the allocation of debts and liabilities. Specific provisions were made for the transfer of various assets, including a motor vehicle, domain name, and the division of household goods and chattels through a mediation and subsequent selection process. The orders also addressed the relinquishment of appointor roles in family trusts and clarified the sole ownership of various assets for each party, subject to the orders made.