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FAMILY LAW ACT 1975 - SECT 90AE Court may make an order under section 79 binding a third party

FAMILY LAW ACT 1975 - SECT 90AE

Court may make an order under section 79 binding a third party

  (1)   In proceedings under section   79, the court may make any of the following orders:

  (a)   an order directed to a creditor of the parties to the marriage to substitute one party for both parties in relation to the debt owed to the creditor;

  (b)   an order directed to a creditor of one party to a marriage to substitute the other party, or both parties, to the marriage for that party in relation to the debt owed to the creditor;

  (c)   an order directed to a creditor of the parties to the marriage that the parties be liable for a different proportion of the debt owed to the creditor than the proportion the parties are liable to before the order is made;

  (d)   an order directed to a director of a company or to a company to register a transfer of shares from one party to the marriage to the other party.

  (2)   In proceedings under section   79, the court may make any other order that:

  (a)   directs a third party to do a thing in relation to the property of a party to the marriage; or

  (b)   alters the rights, liabilities or property interests of a third party in relation to the marriage.

  (3)   The court may only make an order under subsection   (1) or (2) if:

  (a)   the making of the order is reasonably necessary, or reasonably appropriate and adapted, to effect a division of property between the parties to the marriage; and

  (b)   if the order concerns a debt of a party to the marriage--it is not foreseeable at the time that the order is made that to make the order would result in the debt not being paid in full; and

  (c)   the third party has been accorded procedural fairness in relation to the making of the order; and

  (d)   the court is satisfied that, in all the circumstances, it is just and equitable to make the order; and

  (e)   the court is satisfied that the order takes into account the matters mentioned in subsection   (4).

  (4)   The matters are as follows:

  (a)   the taxation effect (if any) of the order on the parties to the marriage;

  (b)   the taxation effect (if any) of the order on the third party;

  (c)   the social security effect (if any) of the order on the parties to the marriage;

  (d)   the third party's administrative costs in relation to the order;

  (e)   if the order concerns a debt of a party to the marriage--the capacity of a party to the marriage to repay the debt after the order is made;

Note:   See paragraph   (3)(b) for requirements for making the order in these circumstances.

Example:   The capacity of a party to the marriage to repay the debt would be affected by that party's ability to repay the debt without undue hardship.

  (f)   the economic, legal or other capacity of the third party to comply with the order;

Example:   The legal capacity of the third party to comply with the order could be affected by the terms of a trust deed. However, after taking the third party's legal capacity into account, the court may make the order despite the terms of the trust deed. If the court does so, the order will have effect despite those terms (see section   90AC).

  (g)   if, as a result of the third party being accorded procedural fairness in relation to the making of the order, the third party raises any other matters--those matters;

Note:   See paragraph   (3)(c) for the requirement to accord procedural fairness to the third party.

  (h)   any other matter that the court considers relevant.

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