TAYLOR & CLAYTON

In the matter of *Taylor & Clayton*, Watts J of the Federal Circuit and Family Court of Australia considered a dispute concerning financial matters between a husband and wife. The wife's legal representative raised several objections to the husband's financial statement, highlighting alleged inaccuracies and double-counting of income and expenses.

The primary legal issues before the court were whether the husband's financial statement accurately reflected his income and expenditures, and if not, how it should be corrected. Specifically, the court was required to determine the proper treatment of an annual bonus, the validity of certain credit card payment claims, and the deductibility of professional fees, including those related to BAS and accounting.

Watts J accepted the wife's submissions regarding the husband's financial statement. The court found that the annual bonus should be treated as income, and a corresponding adjustment was made to increase the husband's available weekly income. Furthermore, the court determined that the husband's claimed weekly credit card payments constituted a double-counting of regular expenses, given his substantial personal savings, and this expense was removed. Regarding the professional fees, the court concluded that the BAS professional rights expense was not a valid deduction, as the licence agreement stipulated that the licence fee was exclusive of GST, and the husband's reported income did not include this GST component. The court noted that existing orders for partial property settlement would address outstanding legal and accounting fees.