VARDY & VARDY

In the Family Court of Australia, Justice Rees considered an interim property settlement application brought by the wife against the husband. The wife sought an order for the sale of a property and an interim payment from the proceeds. The husband contended that his mother had made a significant financial contribution to the property, which, if proven, could exhaust the wife's entitlement to property settlement.

The court was required to determine whether to grant the wife's application for interim property settlement, particularly in light of the husband's assertion regarding his mother's contribution and the potential impact on the wife's overall entitlement. A further issue arose concerning the husband's failure to disclose to the wife an arrangement he had made with the bank regarding arrears on the property's mortgage, which, had it been known, would have dissuaded the wife from pursuing her interim application.

Justice Rees noted that counsel for the wife conceded that if the husband's mother's contribution was established, the wife's claim for property settlement might be extinguished, making an interim order inappropriate. The court also considered the husband's receipt of a default notice from the bank concerning the mortgage arrears and his subsequent private arrangement with the bank to defer the power of sale. The judge found that the husband's failure to inform the wife of this arrangement was a material omission, as she would not have proceeded with her application had she been aware of it. Consequently, the husband agreed to pay a proportion of the wife's costs incurred as a result of this non-disclosure.

The wife's application for interim property settlement was dismissed. The husband was ordered to pay the wife's costs thrown away in the sum of $3,000 within three months. Additionally, the St George Bank was authorised to provide the wife with copies of any correspondence between the bank or its solicitors and the husband concerning the mortgage over the property.