Shipman & Shipman

In the matter of *Shipman & Shipman*, Mr Shipman (the Applicant husband) sought interim injunctive relief against Ms Doherty (the Second Respondent) and sought to join her as a party to the proceedings. The dispute concerned a significant loan made by Ms Doherty to Mr Shipman in 2012, which had resulted in a default judgment in the New South Wales District Court and subsequent bankruptcy proceedings. The primary dispute between Mr and Ms Shipman regarding property settlement was listed for a final hearing.

The legal issues before the Court were whether Ms Doherty should be restrained by injunction from presenting a creditor’s petition or taking further steps to enforce a judgment debt against Mr Shipman, and whether Ms Doherty should be joined as a party to the family law proceedings. The Court was required to consider the application of section 90AF of the *Family Law Act 1975* (Cth) in relation to the proposed injunctive relief.

Altobelli J reasoned that for the purposes of Part VIIIAA of the *Family Law Act*, a debt owed by a party to a marriage is to be treated as property, regardless of whether it is owed by one party or jointly. The Court noted that the husband did not dispute his liability for the judgment debt. Given the ongoing family law proceedings and the potential impact of bankruptcy proceedings on the property settlement, the Court found it appropriate to grant interim injunctive relief. The Court also determined that it was necessary to join Ms Doherty as a party to the proceedings to effectively manage the matter.

The Court ordered that Ms Doherty be restrained by injunction from presenting a creditor’s petition or taking further steps to enforce the judgment debt against Mr Shipman, pending further order. Additionally, Ms Doherty was ordered to be joined as a party to the proceedings as the Second Respondent.