Like Court Orders in other Courts, there are bound to be people who breach orders made by the Federal Circuit and Family Court of Australia and mechanisms are provided in the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 to enforce these orders. In this article, we will explore the means of enforcing financial orders made by the Court, whether it is for payment of money or transfer of property.
First and foremost, when a the Federal Circuit and Family Court of Australia makes an order, they are made in personam, which means they bind the person against whom the orders are made rather than the object. Hence, in the event the Federal Circuit and Family Court of Australia orders that you are entitled to a certain property on certain conditions, the land registry cannot simply remove the other party’s name from the register and replace it with yours directly. Rather, it orders that the person to be dispossessed of the property do all things and sign all documents to transfer the property to you.
Where properties are required to be transferred into the name of a party, the easiest and most straight forward method is to rely on section 106A of the Family Law Act 1975, where an officer of the Court, normally a registrar, can sign the documents of transfer to allow the transfer to take place upon application of the aggrieved party. The issue becomes more complex when it comes to the payment of monies.
In circumstances where a party has failed to make a payment on a money order, Chapter 11 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 is usually relied upon to enforce such orders. The remedies available include requiring the defaulting party to attend an enforcement hearing to determine whether and how the person can repay the money.
In circumstances where the person has known assets but not liquid cash, a warrant may be issued for the sheriff to seize and sell properties belonging to the defaulting party, including real properties, then recover money for the aggrieved party. In other case when it is known that the defaulting party has monies payable to her/him that is held by another person (usually bank accounts) or has an ongoing right to payment (salaries, rent and similar rights) against some other persons, the Court can also issue a third party debt notice on these parties to recover the monies for the aggrieved party.
It usually requires in-depth knowledge of a person’s personal financial circumstances to determine the best method to use to recover monies owed to you as a result of family law order and you should speak to an experienced family law practitioner when faced with such issues.
At Longton Legal, our friendly staff and lawyers are more than willing to lend you a listening ear to explore the best remedy for you when faced with complexed family law issues and would appreciate if you can give us a ring whenever you need assistance.
*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice beforetaking any course of action.*
Special Counsel | Accredited Family Law Specialist NSW
Doing Business in Australia: Your free business health check and guide to overcoming cashflow challenges
This is a challenging financial and economic climate for companies, businesses, and families. If you want to outwit, outplay, and outlast the competition (or simply survive) – cash(flow) is king.
Doing Business in Australia: Insolvency Snapshot for 2024
Corporate insolvency appointments have more than doubled since this time last year.
Can my relationship status change while awaiting the decision on my General Skilled Migration (GSM) visa?
With prolonged processing times, changes in circumstances usually happen. People get married or enter de facto relationships, or they get separated or divorced. Children are born sometimes.
Migration Overhaul – Once in a generation Migration Reform (First of a series)
According to the Australian Bureau of Statistics, the latest figures (2019-2020) showed that international education was worth AUD $37.4 billion to the Australian economy.