SCAVO & SCAVO

Case [2019] FCCA 471


FEDERAL CIRCUIT COURT OF AUSTRALIA

SCAVO & SCAVO [2019] FCCA 471
Catchwords:
FAMILY LAW – Property – standing – where the applicant is an undischarged bankrupt and his trustee in bankruptcy has decided not to intervene – whether a s.79(5) adjournment should be granted until the bankrupt is undischarged – whether the bankrupt has standing in relation to superannuation funds – where superannuation funds have been transferred from the fund to a party's bank account – whether these funds cease to be superannuation.

Legislation:

Bankruptcy Act 1966 (Cth), ss.5, 58, 60, 116, 149, 149A, 178

Family Law Act 1975 (Cth), ss.79, 117

Family Law Rules 2004, rr.6.17, 6.18, 6.19, 6.20

Federal Circuit Court Rules 2001, r.1.05

Income Tax Assessment Regulations 1997, reg.995.1.03 (now repealed)

Superannuation Industry (Supervision) Act 1993 (Cth)

Superannuation Industry (Supervision) Regulations 1974, reg.1.06

Cases cited:

C & C [2001] FamCA 548

Trent & Rowley [2014] FamCA 447

Applicant: MR SCAVO
Respondent: MS SCAVO
File Number: SYC 2101 of 2018
Judgment of: Judge Kemp
Hearing date: 21 February 2019
Date of Last Submission: 21 February 2019
Delivered at: Sydney
Delivered on: 4 March 2019

REPRESENTATION

Solicitors for the Applicant: Slattery Thompson Solicitors
Solicitors for the Respondent: Lane & O’Rourke Solicitors

THE COURT ORDERS THAT:

  1. The proceedings be adjourned under s.79(5) of the Family Law Act 1975 (Cth) until 8 October 2019 at 9.30am for mention.

  2. Seven (7) days prior to the adjourned date, the husband file, with the Court and serve on the wife, evidence of his discharge from bankruptcy.

  3. Liberty to apply on 7 days’ written notice.

  4. The wife’s costs of today be reserved.

IT IS NOTED that publication of this judgment under the pseudonym Scavo & Scavo is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).

FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT SYDNEY

SYC 2101 of 2018

MR SCAVO

Applicant

And

MS SCAVO

Respondent

REASONS FOR JUDGMENT

Introduction

  1. The applicant husband (“the husband”) seeks final property orders, as set out in his Amended Initiating Application filed on 1 June 2018, which were to the following effect:

    (1)That the monies from the sale of the property known as A Street, Suburb B (“the Suburb B property”) be divided equally between the parties; and

    (2)That the superannuation policies monies and the redundancy monies are to be divided equally between the parties.

  2. The respondent wife (“the wife”), on the other hand, seeks final orders, as set out in her Response filed on 5 July 2018, which were to the following effect:

    (1)That the [husband’s] Amended Initiating Application be dismissed; and

    (2)Costs.

  3. The matter for determination today, however, relates to a jurisdictional argument identified before the Court, as to the following matters:

    a)Does the husband have standing when the husband is an undischarged bankrupt and his Trustee in Bankruptcy has notified the Court that, after enquiry, the Trustee has decided not to intervene?

    b)When superannuation funds are transferred from the wife’s Superannuation Fund to her bank account,…

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Details
AGLC
Scavo and Scavo [2019] FCCA 471
Case
[2019] FCCA 471
Decision Date

CaseChat Overview and Summary

In the matter of *SCAVO & SCAVO*, heard before Judge Kemp, the dispute concerned property settlement proceedings under the *Family Law Act 1975* (Cth). The applicant, an undischarged bankrupt, sought an adjournment of the proceedings, with his trustee in bankruptcy having declined to intervene. A key aspect of the dispute involved the applicant's standing to pursue property settlement claims, particularly in relation to superannuation funds that had been transferred to a personal bank account.

The court was required to determine whether an adjournment under s.79(5) of the *Family Law Act* was appropriate until the applicant was discharged from bankruptcy. Furthermore, the court had to consider whether the applicant retained standing in relation to his superannuation funds, and specifically, whether funds transferred from a superannuation fund to a party's bank account ceased to be considered superannuation for the purposes of property settlement.

Judge Kemp ordered that the proceedings be adjourned under s.79(5) of the *Family Law Act* until 8 October 2019, with a further mention scheduled for that date. The husband was directed to file and serve evidence of his discharge from bankruptcy seven days prior to the adjourned date. Liberty to apply on seven days' written notice was granted, and the wife's costs of the day were reserved.

Orders

Orders of the court

1.

The proceedings be adjourned under s.79(5) of the Family Law Act 1975 (Cth) until 8 October 2019 at 9.30am for mention.

2.

Seven (7) days prior to the adjourned date, the husband file, with the Court and serve on the wife, evidence of his discharge from bankruptcy.

3.

Liberty to apply on 7 days’ written notice.

4.

The wife’s costs of today be reserved.

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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