Sigley & De Santis

In the Family Court of Australia, Justice Wilson considered a dispute between a de facto wife and her de facto husband, who was involved in a complex web of interrelated companies and trusts. The de facto wife sought orders concerning the financial arrangements and corporate dealings of the de facto husband, particularly in light of the breakdown of their relationship and his subsequent actions to alter his corporate structures.

The central legal issues before the court involved the validity and effect of various corporate transactions undertaken by the de facto husband. These included the forgiveness of loans owed to his company, which potentially rendered the company insolvent, and the validity of a charge over his sole share in a two-share company, given in favour of a company controlled by his parents. The court also had to consider whether these actions were an attempt to defeat the de facto wife's claims under section 106B of the *Family Law Act 1975* (Cth). Furthermore, the court addressed an application by the de facto wife for orders under Schedule 2 of the *Corporations Act 2001* (Cth) for liquidators to provide a report on the external administration of one of the de facto husband's companies.

Justice Wilson noted the protracted and complex procedural history of the matter, having been heard on 26 separate applications by 10 judicial officers. The court reasoned that the validity of the corporate transactions, including the forgiveness of loans and the charge over the company share, required thorough examination to determine their legitimacy and their impact on the de facto husband's assets and liabilities. The court indicated that these matters needed to be tried to ascertain whether the de facto husband's actions were a genuine commercial arrangement or an attempt to dissipate assets or defeat the de facto wife's entitlements.

The court's ultimate orders were directed towards ensuring the matter proceeded to a trial on its merits, given the complexity and the need for detailed factual findings regarding the corporate dealings and their purpose.