Pippos & Pippos and Anor

This case concerned property settlement proceedings between an applicant wife and her husband, who was a bankrupt represented by the Official Trustee in Bankruptcy. The husband had not sought leave to make submissions pursuant to section 79(12) of the *Family Law Act 1975* (Cth), meaning his standing in the proceedings was significantly diminished. The court was required to determine how the asset pool should be divided in light of the husband's bankruptcy and the respective contributions of the parties.

The central legal issues before the court were whether the property settlement orders made pursuant to section 79 of the *Family Law Act* must be just and equitable as between the parties to the marriage or as between the parties to the proceedings, and how the husband's bankruptcy impacted the just and equitable division of property. The court considered the effect of specific factors under section 75(2) of the Act, including the husband's bankruptcy, on any adjustment to the property division in favour of the wife.

Burr J reasoned that the obligation to do justice and equity extended to the parties before the court, which in this instance included the Official Trustee. Given the husband's bankruptcy and his failure to seek leave to participate, his standing was lost, and the court's focus shifted to achieving a just and equitable outcome between the wife and the Trustee. The court determined that a division of 65% to the wife and 35% to the husband would be appropriate based on their contributions. An additional 5% adjustment was made in the wife's favour due to section 75(2) factors, specifically noting the impact of the husband's bankruptcy under sections 75(2)(ha) and (n). The court also noted that the husband's superannuation was not accessible by the Trustee. Ultimately, the court ordered that the wife receive 70% of the asset pool. The orders detailed a specific financial settlement, including a payment from the wife to the Trustee, the transfer of the H property to the wife, and the discharge of various debts and liabilities by each party.