{"id":45682,"date":"2025-01-21T01:18:51","date_gmt":"2025-01-21T01:18:51","guid":{"rendered":"https:\/\/goldman-lawyers.com\/?p=45682"},"modified":"2025-01-21T01:22:40","modified_gmt":"2025-01-21T01:22:40","slug":"family-court-confirms-the-need-for-clear-terms-in-property-consent-orders-which-particularise-parties-intentions","status":"publish","type":"post","link":"https:\/\/goldman-lawyers.com\/envirounment\/family-court-confirms-the-need-for-clear-terms-in-property-consent-orders-which-particularise-parties-intentions\/","title":{"rendered":"Family Court Confirms the Need for Clear Terms in Property Consent Orders which Particularise Parties\u2019 Intentions"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"45682\" class=\"elementor elementor-45682\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-62d649e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"62d649e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1eda5c9\" data-id=\"1eda5c9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-479b3ab elementor-widget elementor-widget-text-editor\" data-id=\"479b3ab\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.0 - 06-12-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><strong>Key Words <\/strong><\/p>\n<p>Property settlement; consent orders; interpreting consent orders; construction of consent orders; consent orders evincing an intention; interpreting a contract.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6a8da52 elementor-widget elementor-widget-text-editor\" data-id=\"6a8da52\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The case of <em>Dace &amp; The Estate of the Late A Dace <\/em>[2015] FamCAFC 215 (12 November 2015) was a Family Court of Australia (\u201cFCA\u201d) appeal heard by Judge May.\u00a0 In this case, the Appellant Husband appealed to the FCA asking it to reverse an earlier decision made by the Federal Circuit Court of Australia (\u201cFCC\u201d).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66fbeee elementor-widget elementor-widget-heading\" data-id=\"66fbeee\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.0 - 06-12-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h3 class=\"elementor-heading-title elementor-size-default\">Background<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0635d35 elementor-widget elementor-widget-text-editor\" data-id=\"0635d35\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Husband and Wife separated and on 23 December 2010, the Wife commenced proceedings for property settlement orders in the FCC.\u00a0 The parties came to an agreement for the settlement of property by way of consent orders which were made on 26 September 2011.<\/p>\n<p>The parties agreed that their net assets which included a number of parcels of land came to $2,000,000.\u00a0 Out of this, the Wife would be entitled to 48% being $960,000 and the Husband 52% being $1,040,000.\u00a0 The Wife was to receive an initial payment of $75,000 from the Husband and the remaining settlement was to be paid to the Wife upon sale of the various parcels of land.\u00a0 If the land sold for less than expected the Husband was to make up any shortfall so the Wife would receive $960,000.<\/p>\n<p>In late 2011 the Wife passed away and thereafter the property settlement was to be paid to the Wife\u2019s Estate.\u00a0 The Estate was paid various sums of money but was left short by $245,198.\u00a0 On 27 October 2013, the Estate started enforcement proceedings against the Husband to recover the outstanding balance.<\/p>\n<p>The Husband opposed the enforcement application on the grounds that he had incurred costs for outgoings relating to the land.\u00a0 The Husband argued these costs should be split between himself and the Estate.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4d34a7b elementor-widget elementor-widget-heading\" data-id=\"4d34a7b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Evincing an Intention against Joint Liability for Costs<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-50bf9b5 elementor-widget elementor-widget-text-editor\" data-id=\"50bf9b5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>The Court considered the case of <em>Muschinski v Dodds<\/em> [1985] HCA 78; (1985) 160 CLR 583 where it was found that a <em>right of contrition<\/em> would normally apply so that parties would be jointly liable for costs.\u00a0 However, in reviewing the parties\u2019 consent orders the Court found that while they did not <em>explicitly<\/em> say who would be liable for costs they did <em>evince an intention<\/em> that the Husband was liable.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>In the case of <em>Coulls v, Bagot\u2019s Executor &amp; Trustee Co Ltd<\/em> [1967] HCA 3; (1967) 119 CLR 460 the Court found that where parties\u2019 evince an intention to change the default position of joint liabilities it should be interpreted as such.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>The court stated the intention to change the default joint liability in the consent orders could be found by:<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:list {\"ordered\":true} --><\/p>\n<ol><!-- wp:list-item -->\n<li>The use of the term \u201cnet assets\u201d which signified that the settlement amount was after the payment of liabilities.<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>The consent orders stated the Wife was to receive \u201cassets\u201d but not \u201cassets and liabilities\u201d.<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>The condition that if the land sold for less than expected the Wife would still receive the same settlement amount.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<p><!-- \/wp:list --> <!-- wp:paragraph --><\/p>\n<p>The Judge found for the Estate and the Husband was ordered to pay the outstanding balance.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3b67953 elementor-widget elementor-widget-heading\" data-id=\"3b67953\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Appeal<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bebbbd2 elementor-widget elementor-widget-text-editor\" data-id=\"bebbbd2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Husband appealed to the FCA stating that the FCC Judge had made orders that were not just and equitable, had made a mistake as to the facts and law, and had applied the wrong legal principles.<\/p>\n<p>The Husband argued that the consent orders did not say he was liable for the costs of outgoings.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-65cef01 elementor-widget elementor-widget-heading\" data-id=\"65cef01\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Interpreting Consent Orders<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2fc79cc elementor-widget elementor-widget-text-editor\" data-id=\"2fc79cc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Appellate Court looked at the case of <em>I Limited &amp; Chester<\/em> (2010) FLC 93-456 which considered authorities dealing with consent orders interpretation.\u00a0 The authorities stated that consent orders should be interpreted by considering the surrounding circumstances but <em>not<\/em> the intentions of the parties.\u00a0 The Appellate Court then considered the High Court case of <em>Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd &amp; Ors<\/em> [2004] HCA 52; (2004) 219 CLR 165 as authority that the terms of a contractual document are interpreted by \u201cwhat a reasonable person would have understood them to mean\u201d.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a7cb991 elementor-widget elementor-widget-heading\" data-id=\"a7cb991\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Appellate Court\u2019s Findings<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b5ad1d6 elementor-widget elementor-widget-text-editor\" data-id=\"b5ad1d6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Appellate Court agreed with the FCC decision.\u00a0 The correct and proper interpretation of the consent orders showed an intention by the parties that the Wife would not be liable for costs.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16006e7 elementor-widget elementor-widget-heading\" data-id=\"16006e7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-95676e6 elementor-widget elementor-widget-text-editor\" data-id=\"95676e6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In this case, the Husband and Wife entered into consent orders for the division of property between them.\u00a0 Part of the settlement was to be paid after the sale of land.\u00a0 The consent orders did not explicitly say who was liable for costs relating to the land or what should happen if the land took longer to sell than expected.\u00a0 The Husband incurred considerable costs relating to the land before all of the lands were sold.<\/p>\n<p>The court has interpreted the consent orders found they evinced an intention that the Husband was liable for costs.\u00a0 This case shows the importance of ensuring consent orders are precise, clear, considering contingencies, and particularise a party\u2019s full intentions.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Key Words Property settlement; consent orders; interpreting<\/p>\n","protected":false},"author":1,"featured_media":45654,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[218],"tags":[],"class_list":["post-45682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.14 - 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