SPENCER & SPENCER

This case concerned a property settlement dispute between a husband and wife. The wife sought an adjustment in her favour, citing her long period out of paid employment and her need to rehouse herself, contrasted with the husband's anticipated benefits from his business income, financial assistance from his mother, and access to family trust assets. A significant issue was the husband's alleged failure to fully disclose his income and his interest in the family trust.

The court was required to determine the appropriate division of the parties' assets, considering their future needs and the husband's financial circumstances, including the valuation of his business. The court also had to address the husband's disclosure obligations and the implications of his income-earning capacity.

Rees J found that the husband had not accurately disclosed his income from his business, which was substantially larger than represented to the expert valuer. Consequently, the court determined that the business should be valued on a net asset backing basis, with the husband's income-earning capacity being considered as a factor under section 75(2) of the *Family Law Act 1975* (Cth). The court ordered a 12 per cent adjustment in the wife's favour. The orders detailed the sale of certain properties and the disbursement of proceeds, including payments to a company and the wife, and a calculation for the net assets of the parties. The husband was ordered to pay a sum to the wife to achieve the 62% adjustment of net assets, with provisions for the sale of shares in a company if this payment was not made within a specified timeframe. Further orders addressed the transfer of shares, tax liabilities, and the division of superannuation entitlements.