Westmore and Westmore (No. 2)

In *Westmore and Westmore (No. 2)*, Dessau J of the Family Court of Australia considered an application for costs made by the wife following the final determination of property settlement proceedings between the parties. The dispute concerned the wife's entitlement to costs incurred in interim proceedings and the overall costs of the litigation.

The court was required to determine two primary costs issues: first, the costs reserved in interim proceedings in October-November 2006, and second, the overall costs of the proceedings. In addressing these issues, the court was bound by section 117 of the *Family Law Act 1975* (Cth), which governs costs and requires the court to consider specific factors when exercising its discretion to order costs.

Dessau J reasoned that the wife was entitled to her costs for the interim proceedings in October-November 2006, as her applications to restrain the husband from selling shares and using assets were reasonable and necessary given her genuine concerns about potential asset dissipation. Regarding the overall costs, the court considered the parties' financial positions, noting that both would be in reasonably solid positions post-settlement, with the husband in a slightly better position. The court found that the husband's failure to produce certain documents was not a significant impediment to the hearing. While the wife argued she was wholly successful, the court noted she was not entirely successful in retaining a particular property or shares, nor on her contributions argument or section 75(2) factors. The court also considered the wife's settlement offer of a 55:45 split in her favour, which she ultimately exceeded, but found this was not the sole determining factor.

Ultimately, Dessau J ordered that the husband pay the wife's costs fixed at $8,000 by 4 pm on 14 April 2007. This amount encompassed costs reserved from the interim proceedings and a portion of the overall costs, reflecting the court's assessment of the various factors, including the wife's offer of settlement and the husband's substantial financial obligation to pay out the wife.