What is the correct venue?  For most disputes involving parenting arrangements or property proceedings the correct venue will be the FCFCoA in either Division 1 or 2 however, in some circumstances that may not be the case.  In the decision of His Honour, Reithmuller J, in Berglund & Ungureanu [2025] FedCFamC1F 666, the correct venue was the Supreme Court of NSW (“Supreme Court”) and the proceedings were therefore transferred.

In this matter prior to the commencement of property settlement proceedings in the FCFCoA there had been Supreme Court proceedings against the Husband in respect of the misappropriation of funds by him through his employment.  In mid 2024 freezing Orders had been made against the Husband in respect of his assets in Australia.  Following that, a summary judgment had been obtained against the Husband in the sum of $3,324,460.00 plus interest.  The Wife was not a party to the supreme court proceedings however, the intervener in the FCFCoA was the beneficiary of those Orders against the Husband.

Subsequent to the Supreme Court proceedings the Wife commenced proceedings for property settlement in the FCFCoA.  The intervener filed an Application in a Case seeking to have the proceedings transferred to the Supreme Court.  When the matter came before the Court, interestingly, both the Husband and the intervener consented to the following Orders being made:

• The joint tenancies of the Husband and Wife in the three properties be severed;
• The Husband’s superannuation be split to provide almost all of the Husband’s superannuation to the Wife; and 
• The Application be transferred to the Supreme Court for final determination.

His Honour, Reithmuller J, raised concerns about the ability to make Orders 1 and 2 in that on the one hand to do so would be a breach by the Husband of the freezing Orders and on the other hand may amount to an attempt to defeat creditors, given the Wife’s stated intention to transfer her interest in the three properties to the parties children.

His Honour declined to make the Orders, other than to transfer the matter to the Supreme Court.