Wife to retain non-super assets

Property – Order made for wife to retain 100 per cent of known net non-superannuation assets – Husband to pay her a further cash sum of $5,886,842 to reflect his “extensive history of non-disclosure and breaches of Court orders”

In Zhuo & Ji (No 4) [2025] FedCFamC1F 22 (23 January 2025) Harper J heard a wife’s application for property adjustment and spousal maintenance.

The husband’s response had been dismissed for ongoing non-compliance with orders that included non-disclosure and breach of injunctions (Zhuo & Ji (No 2) [2023] FedCFamC1F 640).

The Court said (from [83]):

“ … I am satisfied that there have been substantial and material non-disclosures and breaches of Court orders, for disclosure and to restrain dealings, by the husband. His failure to co-operate with the liquidator is additional evidence of an obstructive and dismissive attitude to the provision of information and regulatory requirements, including his fundamental obligations as a corporate officer. His conduct supports a finding that it is more likely than not that he holds or controls assets or financial resources which he has not disclosed, and which likely have a significant value. In the circumstances of this case, the Court is well justified in making an order beyond the known assets in favour of the wife.”

After finding that contributions by the parties were equal, the Court said (from [165]):

“… In circumstances where I have found the husband has engaged in serious non-disclosure, breaches of Court orders and that there are likely to be assets beyond the ascertained pool, attempting to express the wife’s entitlement as a percentage is artificial and futile. I accept the wife’s contention that she should be awarded the entirety of the known assets of the spouse parties. … ( … )”

The Court ordered that the husband pay the wife $188,998.41 plus interest for arrears of previously ordered spousal maintenance.

Other orders included that the husband’s property be sold, the sale proceeds paid to the wife and that the husband pay the wife cash of $5,886,842 “being the total amount equivalent to the value of the property added back to the balance sheet” ([185]).