Vance & Vance

In the matter of *Vance & Vance*, Carew J of the Family Court of Australia considered an application by the wife concerning rent payments for business premises. The dispute arose in the context of property settlement proceedings following the parties' separation. The husband controlled B Pty Ltd, which occupied premises at D Street, Suburb F, owned by the Vance Family Trust. A lease agreement dated 10 March 2020 stipulated that B Pty Ltd was to pay rent for these premises.

The primary legal issue before the court was whether the husband should be required to cause B Pty Ltd to pay rent and arrears for the D Street premises. The wife sought an order compelling the husband to ensure B Pty Ltd complied with the lease agreement, including the payment of outstanding rent. The husband contended he was unaware of certain automatic rent payments made by B Pty Ltd and had subsequently cancelled them.

Carew J reasoned that the lease agreement was binding on B Pty Ltd and that the husband, as director, had the capacity to ensure the company complied with its obligations. The court found it appropriate to order the husband to cause B Pty Ltd to pay rent as it fell due from the date of the order, in accordance with the lease. However, the court determined that the question of payment of rent arrears should be determined at trial, rather than being resolved at this interlocutory stage. Accordingly, the court ordered that as and from the date of the order, the husband, in his capacity as Director of B Pty Ltd, must cause the company to pay rent as and when it falls due to C Pty Ltd as trustee for the Vance Family Trust, in accordance with the lease. The court also dismissed a specific part of the wife's application relating to the arrears.