SCHOREL & SCHOREL (No.3)

In *Schorel & Schorel (No.3)*, Judge Obradovic of the Federal Circuit Court of Australia considered an application by the husband for an adjustment of property interests out of time, following the breakdown of the parties' marriage. The dispute involved the division of various assets and liabilities, including a jointly owned property, interests in family trusts and companies, and a loan from the husband's parents.

The court was required to determine whether to grant the husband leave to proceed with his application out of time, and thereafter, how to adjust the property interests of the parties justly and equitably. Key issues included the characterisation of a loan from the husband's parents as a contribution by the husband or on behalf of the parties, the assessment of contributions made by each party, and the division of post-separation assets and liabilities, particularly in light of a disparity in the parties' incomes.

The court granted the husband leave to make his application out of time. In its orders, the court directed the wife to transfer her interest in the B Street Property to the husband, who was to pay the wife a sum of $392,048 and indemnify her against the loan from his parents secured over that property. The wife was also ordered to address certain liabilities of a family trust and a company to the Australian Taxation Office and to assign her interests in a loan account with the trust, relinquish her interest in the trust, resign as a director of a company, and transfer her shares in that company to the husband. The remaining assets and liabilities were to be retained by each party respectively, with mutual indemnities for debts in their respective names.