Stephens & Stephens and Ors

In the matter of Stephens & Stephens and Ors, Strickland J considered a dispute involving a husband, a wife, and trustee interveners. The core of the disagreement concerned the proper disposition of various assets, including shares and trust property, within the context of family law proceedings.

The court was required to determine the validity and effect of certain trust instruments and dispositions made pursuant to them, particularly in light of potential challenges under section 106B of the relevant Act. Additionally, the court had to make orders regarding the division of property between the husband and wife, including shares, real estate, and other personal assets, and the payment of a significant sum by the husband to the wife.

Strickland J applied section 106B of the Act to set aside two trust instruments: the Stephens Trust Instrument of Variation dated 7 December 1998, and the instrument entitled “The [Stephens] Trust” dated 18 January 2002. The latter instrument's dispositions, which included the husband forgiving debts owed to the trust by himself and the wife, and the distribution of trust income and capital to four other trusts (W, X, Y, and Z Stephens Trusts), were also set aside. The court ordered the wife to transfer specific Westpac Shares to the trustee interveners. The final orders provided for a comprehensive division of the parties' remaining assets, including real estate, shares, and personal chattels, and mandated a payment of $2,182,302.00 from the husband to the wife.