Family company and allocation of debts in property distribution case

Case of Payne & Payne [2013] FCCA 794.

Family company was in liquidation. Husband established new company and took customers from the old family company.

Husband’s father paid the debts of the family company, taking over the bank as creditor.

The Court ordered it was appropriate to make an order for an indemnity of the wife by the husband regarding any debts of the husband’s father. This order was made pursuant to section 90AE(1)(a) of the Family Law Act 1975.

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