FAMILY LAW AMENDMENT ACT 2003 NO. 138, 2003 - SCHEDULE 6 - Orders and injunctions binding third parties
FAMILY LAW AMENDMENT ACT 2003 NO. 138, 2003 - SCHEDULE 6
- Orders and injunctions binding third parties Part 1Amendments 1 After section 90Insert:
Part VIIIAAOrders and injunctions binding third parties-
The object of this Part is to allow the court, in relation to the property of
a party to a marriage, to:
(a) make an order under section 79 or 114; or
(b) grant an injunction under section 114;
that is directed to, or alters the rights, liabilities or property interests of a third party.
90AB Definitions-
In this Part:
- "marriage" includes a void marriage.
"third party", in relation to a marriage, means a person who is not a party to the marriage.
- (1)
- This Part has effect despite anything to the contrary in any of the following (whether made before or after the commencement of this Part):
(a) any other law (whether written or unwritten) of the Commonwealth, a State
or Territory;
(b) anything in a trust deed or other instrument.
- (2)
- Without limiting subsection (1), nothing done in compliance with this Part by a third party in relation to a marriage is to be treated as resulting in a contravention of a law or instrument referred to in subsection (1).
- (1)
- For the purposes of this Part, a debt owed by a party to a marriage is to be treated as property for the purposes of paragraph (ca) of the definition of matrimonial cause in section 4.
- (2)
- For the purposes of paragraph 114(1)(e), property includes a debt owed by a party to a marriage.
-
This Part does not affect the operation of any other provision of this Act.
- Example: Paragraph 90AE(3)(e) and subsection 90AE(4) do not limit the
operation of any other provisions of this Act that require or permit the court
to take matters into account in making an order in proceedings under
section 79.
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 marriageit 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 marriagethe
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 mattersthose 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.
binding a third party
- (1)
- In proceedings under section 114, the court may:
(a) make an order restraining a person from repossessing property of a party
to a marriage; or
(b) grant an injunction restraining a person from commencing legal
proceedings against a party to a marriage.
- (2)
- In proceedings under section 114, the court may make any other order, or grant any other injunction 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 or grant an injunction under subsection (1) or (2) if:
(a) the making of the order, or the granting of the injunction, 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 or injunction concerns a debt of a party to the
marriageit is not foreseeable at the time that the order is
made, or the injunction granted, that to make the order or grant the
injunction 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 or injunction; and
(d) for an injunction or order under subsection 114(1)the court is
satisfied that, in all the circumstances, it is proper to make the
order or grant the injunction; and
(e) for an injunction under subsection 114(3)the court is satisfied
that, in all the circumstances, it is just or convenient to grant the
injunction; and
(f) the court is satisfied that the order or injunction takes into account
the matters mentioned in subsection (4).
- (4)
- The matters are as follows:
(a) the taxation effect (if any) of the order or injunction on the parties to
the marriage;
(b) the taxation effect (if any) of the order or injunction on the third
party;
(c) the social security effect (if any) of the order or injunction on the
parties to the marriage;
(d) the third party's administrative costs in relation to the order or
injunction;
(e) if the order or injunction concerns a debt of a party to the
marriagethe capacity of a party to the marriage to repay the
debt after the order is made or the injunction is granted;
Note: See
paragraph (3)(b) for requirements for making the order or
granting the injunction 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 or injunction;
Example: The legal capacity of the third party to comply with the order or injunction 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 or grant the injunction despite the terms of the trust deed. If the court does so, the order or injunction 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 or the granting of the injunction, the third party raises any other mattersthose 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.
-
If an order or injunction binds a person in the capacity of trustee in
relation to property, then the order or injunction is also binding (by force
of this section) on any person who subsequently becomes the trustee.
-
A third party in relation to a marriage is not liable for loss or damage
suffered by any person because of things done (or not done) by the third party
in good faith in reliance on an order or injunction made or granted by a court
in accordance with this Part.
- (1)
- If a document is required or permitted to be served for the purposes of this Part on a third party in relation to a marriage, the document may be served in any of the ways in which a document may be served under the applicable Rules of Court.
- (2)
- Subsection (1) is in addition to any other method of service permitted by law.
- (1)
- Subsection (2) applies if:
(a) the court has made an order or granted an injunction in accordance with
this Part in relation to a marriage; and
(b) a third party in relation to the marriage has incurred expense as a
necessary result of the order or injunction.
- (2)
- The court may make such order as it considers just for the payment of the reasonable expenses of the third party incurred as a necessary result of the order or injunction.
- (3)
- In deciding whether to make an order under subsection (2), subject to what the court considers just, the court must take into account the principle that the parties to the marriage should bear the reasonable expenses of the third party equally.
- (4)
- The regulations may provide, in situations where the court has not made an order under subsection (2):
(a) for the charging by the third party of reasonable fees to cover the
reasonable expenses of the third party incurred as a necessary result of the
order or injunction; and
(b) if such fees are chargedthat each of the parties to the marriage
is separately liable to pay the third party an amount equal to half of
those fees; and
(c) for conferring jurisdiction on a particular court or courts in
relation to the collection or recovery of such fees.
- (1)
- The court must not make an order or grant an injunction in accordance with this Part if the order or injunction would:
(a) result in the acquisition of property from a person otherwise than on just
terms; and
(b) be invalid because of paragraph 51(xxxi) of the Constitution.
- (2)
- In this section:
- "acquisition of property" has the same meaning as in paragraph 51(xxxi) of the
Constitution.
"just terms" has the same meaning as in paragraph 51(xxxi) of the Constitution.
(1) Subject to this item, the amendments made by Part 1 of this Schedule
apply to all marriages, including those that were dissolved before the
commencement time.
(2) Subject to subitems (3) and (4), the amendments
made by this Schedule do not apply to a marriage if a section 79 order,
or a section 87 agreement, is in force in relation to the marriage at the
commencement time.
(3) If a section 79 order that is in force at the
commencement time is later set aside under paragraph 79A(1)(a), (b), (c) or
(d) of the Family Law Act , then the amendments made by this Schedule apply
to the marriage from the time the order is set aside.
(4) If an approval of a
section 87 agreement that is in force at the commencement time is later
revoked on a ground specified in paragraph 87(8)(a), (c) or (d) of the
Family Law Act, then the amendments made by this Schedule apply to the
marriage from the time the approval is revoked.
(5) In this item, unless the
contrary intention appears:
commencement time means the time when this
Schedule commences.
" Family Law Act" means the Family Law Act 1975 .
"marriage" includes a void marriage.
section 79 order means an order
(other than an interim order or a partial order) made under section 79 of
the Family Law Act.
section 87 agreement means an agreement approved
under section 87 of the Family Law Act.