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First Edition
July 2006
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Welcome.
Welcome to the first edition of The Nicholes Newsletter, our monthly
newsletter. We hope it will provide you with a snap shot of contemporary
and relevant issues relating to family law and keep you up-to-date
with changes to the law.
These are exciting times to be in family law with an overhaul of
both the child support system and the parenting laws.
The new Shared Parental Laws have a focus on mediated results. Our
law firm has consistently promoted mediation as a preference for
our clients; especially in respect of issues relating to children
and parenting. We utilise our excellent referral base of family
counselors and expert psychologists to achieve collaborative outcomes
for families wherever possible.
The Nicholes Newsletter will be updated regularly. The Newsletter
aims to be of interest to those working with families and children
as well as financial advisors and accountants.
If you want further information about an issue featured in the
newsletter, please contact either Sally
Nicholes , our principal or our Associates Annie
Fielder and Nadine
Udorovic who will be happy to assist you.
Our New Website.
Our website is finally up and running. Visit www.nicholeslaw.com.au
to find additional news and information about Nicholes Family Lawyers,
our team, and the not-for profit Foundations that our firm supports...
Nadine
Udorovic
Editor
Our Family Law Team.
The Nicholes Family Lawyers team is an interesting and diverse
group of lawyers. The firm’s principal, Sally
Nicholes ,
has been practicing family law for 12 years. Sally enjoyed 11 years
at Middletons Lawyers where she advanced to being one of the youngest
appointed partners in 2001. Sally was one of the few female partners
and particularly enjoyed her role as a mentor to young solicitors
and her professional relationship and friendship with her Middletons
partners which happily continues today.
In 2006, Sally has been involved in a number of important family
law events in Melbourne, including speaking at a seminar to family
law practitioners in February on the Hague Convention on the Civil
aspects of International child abduction. The crew from 'A Current
Affair' also filmed an interview with Sally in our office for expert
opinion on family law and child abduction. Sally will be speaking
at a Legal Wise Seminar to family law practitioners in July on the
new changes to parenting laws as well as child support.
Annie Fielder
joined NFL in May 2006 from extensive experience at Kennedy Wisewoulds,
Berry & Associates and Hayes and Associates.
Nadine Udorovic
left Nedovic & Co with great memories and friendships having
benefited from the tutelage of her principal Peter Nedovic, a highly
respected and senior practitioner in family and property law.
The highly publicised “Shared
Parenting Bill” becomes law as of 1 July 2006.
The main stated intention of the new Shared Parenting laws is to
“protect the rights of children of separating parents”,
particularly their right to the “love and support of both
their parents”.
Equal shared parental responsibility and
equal time spent with the child.
The Courts are required to apply a presumption that it is in the
child’s best interest for their parents to have equal shared
parental responsibility for the child. This presumption will not
operate if there are reasonable grounds to believe a parent is engaged
in child abuse or family violence.
If an order for shared responsibility is made the Court must consider
whether the child spending equal time with each of the parents would
be in that child’s best interest and is reasonably practicable.
If the Court does not consider equal time as an appropriate order,
it must consider whether the child spending substantial and significant
time is in the child’s best interest.
In determining whether the level of contact is considered “reasonably
practical” , the Court must have regard to:
• How far apart the parents live from one another
• The parents’ current and future capacity to implement
an arrangement for the child
• The parents’ current and future capacity to communicate
with each other and resolve difficulties
• The impact that any arrangement will have on the child
• Such other matters as the Court considers relevant
“Significant Time” is time including weekends, holidays
and other days. The time that a child spends with a parent should
allow the parent to be involved in the child’s daily routine,
as well as occasions and events that are of particular significance
to the child or parent.
Parents are obligated to:
• Consult on major long term issues whenever there is an order
for shared parental responsibility
The Court is obligated to:
• Consider equal time
• Presume equal shared parental responsibility
• Ignore interim orders
• Consider substantial and significant time
A two tiered structure of considerations support the main objective
of the Shared Parenting laws. The best interest of a child remains
a paramount consideration. The new Act lists matters that the Court
must consider when determining what is in the child’s best
interests. These matters are divided into primary and additional
considerations. They include the relevance of parent’s attitudes
to the child and to the responsibilities of parenting. It requires
the Court to look at the extent to which each of the child’s
parents has fulfilled, or failed to fulfill, their responsibilities
as a parent. This includes the extent to which the child’s
parents have participated in making decisions about long term issues,
time spent with the child and communication with the child. It importantly
considers whether or not each parent has facilitated the other parent
in fulfilling their responsibilities.
Many of the considerations in the two tiered system were relevant
to judges’ considerations in parenting cases according to
practice and precedent. However, the historical parenting issues
were not a point of emphasis before the new laws and this firm hopes
that re-emergence of past parenting will focus on critical and relevant
past issues.
Parties to Family Law actions will be required to try to resolve
issues without the need for Family Court litigation. One of the
requirements will be that parties will be required “to
attend mediation before filing in the Family Court”, except
where family violence has occurred.
Her Honour, the Chief Justice Diana Bryant of the Family Court
of Australia has made it clear that litigating parties already in
the Family Court of Australia and those whose proceedings are underway
should not rush to the Family Court in the hope of having existing
orders or pending hearings changed on the basis of the Shared Parenting
laws. The new laws do not represent “changed circumstances”
to vary a current parenting order.
Mediating family
law disputes.
The Family Court of Australia and the Australian Government hope
that the introduction of the Shared Parenting laws will steer families
away from litigation and towards mediation, attempting to understand
and build on the relationship of parents with their children.
The object of the compulsory family dispute resolution is to ensure
that all parties who have dispute about matters make a genuine effort
to resolve that dispute by family dispute resolution before an application
to the Court is made.
Family relationship centres will be created to help people who
are separating to resolve their disputes without the need for litigation.
Relocation and the Shared Parenting Laws.
A move interstate or overseas (as opposed to an intra –metropolitan
move) would conflict with the new focus on a child having a meaningful
relationship with both parents, being one of the primary considerations
to consider under the new two-tiered system.
The leading cases on relocation refer to the importance of guiding
legislation. The question to be considered is whether the shared
parenting laws give primary consideration to a child having a meaningful
relationship with both parents over the relocating parent’s
freedom of movement to live where they desire. The impact of the
new laws on a parents’ right to move with a child will need
to be tested in Court; however it may be that if it is found that
the relocation impacts on the meaningful relation with the non-relocating
parent and child, the relocation will fail.
Conclusion.
The new regime will be a challenge to the Courts, practitioner
and parties alike. There are a number of significant and related
issues that have not been covered in the Newsletter that you may
wish to explore including the status of parenting plans. Please
contact our office if you wish further information on the new laws.
Financial Developments and
Family Law.
New Child Support Regime.
The new reforms will include a new child support formula that reflects
the true costs of raising children in Australia, recognizing the
incomes of both parents and balancing the needs of first and second
families.
The reform package will be introduced in three stages, with the
more extensive and complex elements, including the new formula,
being the third stage.
On 15 June 2006 assent was given to the initial reforms as described
in brief below:
- An increase in the minimum child support payment from the current
amount, equal to $5 per week, to the amount that would have been
in place if the old minimum had been indexed since its introduction
to 1999. This new minimum payment, currently equal to about $6.15
per week, will retain its value through a regular indexed process.
- Lowering of the cap on income that is in excess of 2.5 times
the yearly value of average weekly total earnings fro full-time
adults is disregarded. The changed cap will have a comparable
amount drawn from the average weekly total earnings for all employees,
that is, a lower reference amount. This will mean that some high-income
earners will pay child support at a lower rate than under the
current cap, which required some payers to pay more then the actual
costs of their children.
- More detail will be provided by the Bill on the circumstances
in which a parent’s capacity to earn may allow the Child
Support Agency or a court to depart from the usual administrative
assessment rules in setting the amount of child support paid.
For example, it would have to be clear to the Child Support Agency
or court that the parent is either unwilling to take up work opportunities,
has reduced his or her employment to a level that is lower then
the normal full-time level in the occupation or industry or has
changed his or her occupation or working pattern. The decision
would not be justified by that parent’s health or caring
responsibilities. The parent would have to be found to have not
demonstrated that the major reason of the employment decision
was not to effect t child support.
- The Bill increases 25 per cent to 30 percent the proportion
of which the payer’s child support payment can be met through
prescribed non agency payments such as child care, school fees
and essential medial and dental bills. This will give payers more
flexibility in meeting their obligations.
- Making provision to ensure that there is no hiatus in the scheme
with respect to exnuptial children in Western Australia between
amendments by the Commonwealth and adoption of those amendments
in WA (WA not having remitted power to legislate over exnuptial
children to the Commonwealth).
Recent Property Judgments.
In the recent case of IABH and HRBH [2006] Fam CA 379 the Full
Court of the Family Court determined that a trial judge has erred
in finding that the value of a guarantee relating to company debts
should be deducted from the asset pool or treated as a liability.
The trial judge has reduced the party’s asset poll by taking
into account a sum of $210,313.00 (being the alleged liability of
the husband under a guarantee given by him and two of his partners
in respect of the debts of their company).
There was no evidence that any attempt had been made to place the
company in liquidation, receivership or otherwise to seek to have
orders made against it. Further there was no evidence of any demand
being made upon the husband in reliance under the guarantee. There
was no evidence that the company was no longer trading.
The failure to take into account the factors referred to above
meant that it was not open to the trial judge to treat the liability
as one to be met wholly by the husband and included in the list
of assets and liabilities of the parties.
The trial judge was also found to have erred in treating capital
gains tax and selling expenses as liabilities and deducting them
also from the pool of assets. The trial judge finding that the sale
of certain entities was an inevitable consequence of the husband
continuing to conduct his business in the manner in which he had
done for years was not open to the judge and thus he had erred in
deducting the notional selling expenses and the capital gains tax.
Such factors in respect of the possible selling expenses and incurring
capital gains tax should be taken into account in the percentage
division not off the value of the assets pool.
Settled by Sally Nicholes, Principal Nicholes Family Lawyers.
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