PITT & PITT

In the matter of *Pitt & Pitt*, Rose J considered a property settlement dispute between a husband and wife. The core of the disagreement revolved around the valuation of the parties' shareholding in R Pty Ltd and F Pty Ltd, and the weight to be given to a "non-binding indicative offer" made by a market competitor for the business. The wife also sought to re-open previous applications related to the property settlement.

The court was required to determine the value of the parties' interests in R Pty Ltd and F Pty Ltd, considering various factors including future maintainable earnings, prepayments of expenses, and the application of an EBIT multiple. A key legal issue was the extent to which a non-binding indicative offer from a competitor should influence the valuation of the company's undertaking. The court also had to address the wife's applications to re-open earlier decisions and the proper treatment of various disputed items, including loans and legal costs.

Rose J applied general principles of property settlement in family law cases, emphasizing the need to give reasons for preferring one expert's evidence over another. The court considered the expert evidence presented by Messrs Ex1 and Ex2, and Messrs T1 and T2, in relation to the valuation of the company. The judge ultimately determined the value of the parties' interests in R Pty Ltd and F Pty Ltd, taking into account the various financial aspects and the expert opinions. The court also made specific orders regarding the transfer of shares, property, and the adjustment of loan balances.

The final orders included the husband paying the wife a sum of $5,212,413.00, with various provisions for the transfer of shares in R Pty Ltd and F Pty Ltd, and the transfer of the wife's interest in a Tasmanian property. The orders also detailed a process for the potential sale of the business undertaking of R Pty Ltd, including the appointment of a lead adviser and solicitor, and the preparation of an information memorandum. Provisions were made for the distribution of sale proceeds and the discharge of loan liabilities.