TOBIAS & TOBIAS

In *Tobias & Tobias*, Purdon-Sully J of the Family Court of Australia considered a dispute between a husband and wife concerning property division. The parties had reached an informal property settlement, but the wife had lent the husband a sum of money, which was subsequently lost. The husband was also facing significant debts from creditors. The central issue was the legal status and enforceability of the wife's loan agreement with the husband within the context of family law property proceedings.

The court was required to determine whether the wife's loan constituted a debt that should be recognised and accounted for in any property division, or if it was to be treated as part of the parties' financial contributions or resources. Additionally, the court had to consider the husband's application for injunction relief, assessing whether the proper legal basis for such relief had been established. The question of costs also arose, requiring the court to determine if there were any justifying circumstances to award costs in favour of either party.

Purdon-Sully J reasoned that the informal property settlement between the parties had effectively resolved their property matters, and there was no substantive property remaining to be divided by the court. The court found that the wife's purported loan agreement was not a genuine debt that could be enforced or recognised in the family law proceedings, particularly given the informal nature of the settlement and the subsequent loss of the funds. The husband's application for injunction relief was dismissed as the proper legal basis for such an order was not made out.

Consequently, the court ordered that the Amended Application and the Further Further Amended Response be dismissed. Furthermore, the court made no order as to costs, finding no justifying circumstances in favour of either party.