REBANE & REBANE

In REBANE & REBANE, Collier J of the Family Court of Australia considered a property settlement dispute between a husband and wife following a long marriage. The parties had no outstanding liabilities and had agreed to an in-species division of certain assets, with the wife having the opportunity to buy out the husband's interest in the former matrimonial home. Concerns were raised regarding the wife's financial disclosure throughout the proceedings.

The court was required to determine how to deal with the division of the former matrimonial home, considering the wife's potential buyout and the possibility of a sale by private treaty or auction if the buyout did not proceed. Further issues included the appropriate treatment of a potential bequest under a will and the division of superannuation entitlements, specifically whether a superannuation splitting order was appropriate or if a lump sum payment would better extinguish the parties' financial relationship. The court also had to consider adjustments under section 75(2) of the Family Law Act 1975 (Cth) in light of the husband's health and retirement, and the wife's current income and future earning capacity.

Collier J reasoned that the wife should have the opportunity to purchase the husband's interest in the former matrimonial home for a specified sum. If this payment was not made within three months, the property was to be sold by private treaty, and if that failed within six months, it was to be sold by public auction. The proceeds of sale were to be applied first to sale expenses, then to the wife, with a portion of that amount to be paid to the husband for superannuation. The balance of the proceeds, along with a further specified sum for superannuation, was to be paid to the husband. The court also made specific orders regarding the retention of other assets by each party, including their respective superannuation entitlements, and noted prior orders for the division of personalty.

The court ordered that the wife pay the husband $685,567 within three months to acquire his interest in the former matrimonial home. Failing this, the property was to be sold, with proceeds distributed according to a specified formula, including a payment of $30,000 to the husband for superannuation from the wife's share of the sale proceeds. The wife was also ordered to pay a further $30,000 for superannuation contemporaneously with the initial buyout payment, with leave granted to the husband to seek a superannuation splitting order if this payment was not made. Each party was to retain their respective superannuation entitlements and other specified assets. All outstanding applications and cross-applications were dismissed.