Rodgers & Rodgers (No 2)

Case [2016] FamCAFC 104


FAMILY COURT OF AUSTRALIA

RODGERS & RODGERS (NO. 2) [2016] FamCAFC 104

FAMILY LAW – APPEAL – PROPERTY SETTLEMENT – whether the trial judge erred in refusing to deduct a calculation of the total future taxation payable by the parties’ corporation – where the treatment of the liability should be governed by what is just and equitable as between the parties – where the failure of the trial judge to include the calculated taxation liability is not, of itself, an error – where it was within discretion for the trial judge to treat the liability as a matter to be considered by reference to s 79(4)(e) – where the s 79(4)(e) assessment was not “plainly unjust” or “plainly wrong” – where the trial judge failed to consider relevant considerations in the s 79(4)(e) assessment – where error in the exercise of trial judge’s discretion established – appeal allowed – matter to be re-determined by the Full Court.

FAMILY LAW – APPEAL – PROPERTY – RE-EXERCISE OF DISCRETION – where the appeal was allowed – where the husband held to be entitled to 55 per cent of the net assets and the wife to 45 per cent – costs certificate granted.

Family Law Act 1975 (Cth) ss 75(2), 79, 79(2), 79(4) and 117(1)

Federal Proceedings (Costs) Act 1981 (Cth) ss 6 and 9

Income Tax Assessment Act 1936 (Cth) Div 7A and s 108

Af Petersens and Af Petersens (1981) FLC 91-095

Aleksovski vAleksovski (1996) FLC 92-705
Allesch v Maunz (2000) 203 CLR 172
Anderson & Anderson [2002] FamCA 155
Ascot Investments v Harper (1981) 148 CLR 337
Baldwin & Baldwin [2010] FamCAFC 227

Biltoft and Biltoft (1995) FLC 92-614

Campbell v Kuskey (1998) FLC 92-795

CDJ v VAJ (1998) 197 CLR 172

Chorn and Hopkins (2004) FLC 93-204
Clauson and Clauson (1995) FLC 92-595
DJM v JLM (1998) FLC 92-816

Ferraro & Ferraro (1993) FLC 92-335
Gronow v Gronow (1979) 144 CLR 513
Hoffman & Hoffman (2014) 51 Fam LR 568
House v The King (1936) 55 CLR 499

Lovell v Lovell (1950) 81 CLR 513
Mallet v Mallet (1984) 156 CLR 605

Money and Money (1994) FLC 92-485
Noetel and Quealey (2005) FLC 93-230
Norbis and Norbis (1984) FLC 91-543
Pearce and Pearce (1982) FLC 91-276
Prince and Prince (1984) FLC 91-501
Re Bailey and Bailey (Executrix of the Estate of Bailey) (1990) FLC 92-117
Robb and Robb (1995) FLC 92-555
Rosati v Rosati  (1998) FLC 92-804

Rowell and Rowell (1989) FLC 92-026
Sharman v Evans (1977) 138 CLR 563

Shave & Shave (unreported, Family Court of Australia, Fogarty, Lindenmayer & Moore JJ, 13 February 1997)
Stanford v Stanford (2012) 247 CLR 108
Vass & Vass (2015) 53 Fam LR 373

APPELLANT: Mr Rodgers
RESPONDENT/CROSS-APPELLANT: Ms Rodgers
FILE NUMBER: PTW 2314 of 2011
APPEAL NUMBER: WA 6 of 2015
DATE DELIVERED: 4 May 2016
10 June 2016
PLACE DELIVERED: Brisbane
PLACE HEARD: Perth & Sydney via video-link to Perth
JUDGMENT OF: Thackray, Ainslie-Wallace & Murphy JJ
HEARING…

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AGLC
Rodgers & Rodgers (No 2) [2016] FamCAFC 104
Case
[2016] FamCAFC 104
Decision Date

CaseChat Overview and Summary

The case of Rodgers & Rodgers (No 2) was heard in the Family Court of Australia, with the appeal being heard by the Full Court. The dispute between the parties, the husband and wife, centred on the property settlement following their divorce. The husband appealed the trial judge’s decision, arguing that the judge had failed to deduct a calculation of the total future taxation payable by the parties’ corporation from the property settlement. The husband contended that the treatment of the taxation liability should be governed by what is just and equitable between the parties, and that the trial judge's failure to include the calculated taxation liability constituted an error.

The legal issues before the court included whether the trial judge erred in not deducting the calculated taxation liability from the property settlement and whether the trial judge’s decision was plainly unjust or plainly wrong. The court held that the failure to include the taxation liability was not, in itself, an error, as it was within the trial judge's discretion to treat the liability as a matter to be considered under section 79(4)(e) of the Family Law Act. However, the court found that the trial judge had failed to consider relevant considerations in making this assessment, and that the exercise of the trial judge's discretion was erroneous. The court concluded that the appeal was allowed and the matter should be re-determined by the Full Court.

The Full Court allowed the appeal and varied the orders made by the trial judge. The husband was held to be entitled to 55 per cent of the net assets and the wife to 45 per cent. Each party was ordered to bear their own costs of and incidental to the appeal. Additionally, the husband was granted a costs certificate in respect of his costs of and incidental to the appeal, and the wife was granted a costs certificate in respect of her costs of and incidental to the appeal. The court’s decision was that the husband should pay the wife $532,701, with the wife to pay the husband $116,057 within 14 days.

Orders

Orders of the court

IT IS ORDERED THAT:

1.

The appeal be allowed.

2.

The orders made by Justice Crisford on 22 January 2015 be varied by deleting from paragraph 1 the words “the husband pay to the wife the sum of $648,758” and inserting in lieu the words “the husband pay to the wife the sum of $532,701” and to give effect to this order, the wife do pay or cause to be paid to the husband the sum of $116,057 within 14 days.

3.

Each party shall bear their own costs of and incidental to the appeal.

4.

The appellant husband be granted a costs certificate pursuant to s 9 of the Federal Proceedings (Costs) Act 1981 (Cth) in respect of his costs of and incidental to the appeal.

5.

The respondent wife be granted a costs certificate pursuant to s 6 of the Federal Proceedings (Costs) Act 1981 (Cth) in respect of her costs of and incidental to the appeal.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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