Verdon & Verdon (No 4)

This matter concerned an application by Mr Verdon (the applicant) to adduce further financial evidence during the final hearing of property settlement proceedings against Ms Verdon (the respondent). The dispute centred on the admissibility of a folder of documents containing 12 years of financial information, specifically dividend distributions from H Pty Ltd to various trusts, which the applicant sought to introduce viva voce. This application followed an earlier ruling by the court on 28 April 2021, which had deemed paragraph 81 of the applicant's affidavit, containing similar financial information, inadmissible.

The primary legal issue before the court was whether to permit the applicant to adduce the financial information contained in the folder of documents, despite the prior ruling on similar evidence and the expiry of time limits for filing evidence-in-chief. The respondent argued that admitting the documents would constitute an impermissible attempt to introduce evidence-in-chief out of time, without prior notice, and would cause significant prejudice. The applicant contended that the documents constituted business records admissible under section 69 of the *Evidence Act 1995* (Cth) and that the court's discretion should favour admitting evidence where justice required, citing authorities such as *Mallet v Mallet* and *Aon Risk Services Australia Ltd v Australian National University*.

The court considered the competing arguments regarding the admissibility of the financial documents. The applicant sought to rely on the business records exception and argued that compliance with procedural orders should yield to the justice of the situation, asserting that a party should not be punished for mistakes and that the court's ultimate aim is justice. The respondent maintained that the documents were not relevant to the core issue of contributions under section 79 of the *Family Law Act 1975* (Cth) and that admitting them would be unfairly prejudicial. The court noted that it had not seen the contentious documents and that an adjournment would allow for proper proof of the evidence and an opportunity for the respondent to respond.

Consequently, the court adjourned the final hearing to resume part heard on 11 October 2021. Consent orders were made addressing various procedural matters, including the filing and service of affidavits concerning the financial statements of H Pty Ltd, the exchange of objections to this material, and the determination of updated valuations for various entities. The orders also provided for partial property settlement payments and directed the parties to instruct experts to confer and provide a memorandum to the court detailing areas of agreement and disagreement.