Husband fined for purchasing cryptocurrency

In the recent case of Lescosky & Durante [2020] FamCAFC 179, a Husband was fined $54,000.00 for purchasing cryptocurrency to the value of $180,000.00.

The parties had been engaged in contested property settlement proceedings. The Husband set up two new bank accounts and transferred the sum of $180,000.00 over an 11 day period, which was utilised to purchase the cryptocurrency.

The issue with the purchase of the cryptocurrency by the Husband, was that this breached (“contravened”) a Court Order. The Court Order provided that:

  • the Husband was restrained from transferring or otherwise disposing of any asset exceeding $1,000.00 in value (save in the ordinary course of business); and
  • prior to transferring or otherwise disposing of any asset exceeding $1,000.00 in value, the Husband was to provide seven (7) days written notice of his intention to deal, to the Wife’s solicitors.

The Court proposed that “payment of the fines be made by the Husband, namely from his entitlement in the property settlement proceedings.”

This case serves as a reminder as to the powers available to the Court, where there is a contravention of a Court Order.

If you have any queries in relation to Court Orders, or require assistance with a property settlement, please call us on 07 3278 1888.

4 Common Myths About Divorce

You Don’t Need Legal Advice

While you can prepare your own divorce application, we strongly recommend you seek legal advice before doing so. This is especially the case when you have children or hold joint property together. Making the initial decision to get legal advice will ensure your rights are represented.

You Can Get Divorced Whenever You Want

The only grounds for divorce are that the marriage has broken down irretrievably and you must have been separated for at least 12 months and one day. If there are children under 18 then proper arrangements need to have been made for them. In Australia, if you have been married for less than two years you will need to attend counselling and provide the court with a counselling certificate.

Mothers Always Get Custody

When a court determines who will have physical and legal custody, they take the best interests of the children into consideration.

Assets Are Split Equally

The division of assets is more about fairness rather than an equal split. Once the asset pool has been compiled, the process involves measuring the contribution that each party made to the assets. There are a number of factors that are taken into account, and the division must be just and equitable under the Family Law Act.

We are here to help

Please call us on 07 3278 1888 for your no obligation FREE quote and initial advice

Documents You Need To Settle Outstanding Property Matters

After you separate and before negotiations can commence to settle property matters you will need your former spouse or partner to provide you with all relevant information regarding the value of the assets and liabilities, and his or her financial position.

The Family Law Rules provide that parties have a legal obligation to provide the details of all relevant financial information and documentation that is or has been in the possession, or under the control of the party disclosing the document  and is relevant.

Therefore you will need to request copies of the following types of documents:

  1. Three market appraisals  (from three different real estates) in relation to any real property that is owned solely or jointly with any other person;
  2. A market appraisal and full description of all motor vehicle/s or vessels owned;
  3. A market appraisal of any other asset owned;
  4. Taxation returns and assessments for the three (3) most recent financial years;
  5. Superannuation documents for superannuation interests;
  6. In relation to any business, company, corporation, partnership or trust you will need financial statements for each, tax returns and assessments, bank statements or other financial institution statements of account (credit and debit) for the three (3) most recent years; a copy of any trust deed, corporate constitution or partnership agreement;
  7. In relation to liabilities (debts) including but not limited to home loans, vehicle loans, personal loans, credit cards or any other loan, loan account statements for the three (3) most recent years, loan document or contract, loan application form for each debt;
  8. Documents regarding financial contributions (including value of assets) made by you at the commencement of cohabitation, inheritances/ gifts or any compensation payments received during cohabitation or expected to be received in the future, any purchase or disposal of property in the 12 months prior to and since separation, any increase or reduction of liabilities since separation;
  9. A list of all bank accounts (or credit union/ building society accounts), details of account numbers, passbook and bank statements for the three (3) most recent financial years, and current balance of each account, records of any investments (stocks or shares), details of any social security pension or payment details, details/ records of any long service leave accrued, records relating to life assurance or disability insurance;
  10. List any other relevant documentation.

How should I prepare for my first appointment with my Solicitor to discuss property settlement?

The weeks and months after a separation has occurred can be very stressful and may leave you unsure where to turn. The solicitors at Hogan Stanton Lawyers are here to help you with the crucial next steps.

Once you have decided that you want to speak to us for advice it can be difficult to know how you should prepare for that first meeting so that you get the most out of your initial appointment and we have all of the information available to advise you.

When attending an initial appointment with Hogan Stanton Lawyers the first questions we will ask you are the key dates of the relationship including the date you started living together, the date you were married (if applicable), the date you separated and crucially if you were married and are now divorced, the date the Divorce Order became effective. This is important because we will need to identify the time limit for filing an Application for Consent Orders or an Initiating Application with the Courts.

We will also need to know if there are any children of the relationship and, if so, their full names, date of birth, current age and who they live with / what arrangements have been made for both parents to spend time with the children.

We will then run through the history of the relationship requesting information which includes but is not limited to:

  1. Both parties assets at the commencement of the relationship;
  2. Both parties employment histories, including periods of unemployment and maternity or parental leave and salaries (if known);
  3. Details of any properties purchased during the relationship including how the deposit and stamp duty was paid and how the balance of the purchase price was paid;
  4. All assets including superannuation, currently owned by the parties either individually / jointly / through businesses and / or trusts. It is important to identify as many of those assets as you can and to try and estimate a value for them or obtain a Valuation;
  5. All liabilities currently owed by the parties individually / jointly / through businesses and / or trusts;
  6. Both parties’ non-financial contributions which includes your individual roles caring for the children, home maintenance and care and homemaker duties;
  7. Whether there have been any windfalls during the relationship including inheritances, redundancies, TPD payouts, personal injury compensation payouts, lotto winnings etc.;
  8. Both party’s current health, living arrangements and employment.

We will then explain to you about how the Court will determine how the asset pool should be divided taking into account the length of the relationship, financial and non-financial contributions and each parties future needs.

We will also explain how the matter can be finalised by either filing an Application for Consent Orders in the Family Court of Australia or an Initiating Application in the Family Court of Australia or Federal Circuit Court of Australia depending upon your individual circumstances and whether or not an agreement has or can be agreed.

It may be possible to provide you with an initial estimate of how the pool could be divided by the Courts, but it is likely that we will need both parties to provide their full and frank financial disclosure before confirming that advice.

Before you attend your appointment with us you should have a think about the answers to the above questions so that you can provide us with the information we will require.

It may also be helpful to write down your answers and also to print out copies of your financial statements etc. so that you have these to hand at your initial appointment. If you own property either on your own / jointly / through businesses and / or trusts you should consider how much you think the property would be valued at and what you owe in relation to each item.

If you are looking for family law advice about financial/property and / or children’s issues please give Hogan Stanton Lawyers a call to schedule an appointment at your earliest convenience.