Harry and Sarah married 23 years ago. At the time, Sarah was working as an office assistant and Harry was a builder. Neither had any real assets, other than a car owned by Harry and some furniture. Shortly after they married, Sarah's wealthy parents (she is an only child) gave her $300,000 saying: "This is so you and Harry can buy a house". With that money, they bought a house in North Wollongong. The house is now worth $2.5 million.

Six months after they married, Sarah became pregnant and Harry told her that she had to stop work. Sarah gave birth to a son, Matthew (now aged 22 and left home) and, six years later, Marie (now aged 16 and still at school).

Around the time Marie was born, Harry designed a kit home. He had been developing the design for years, spending many weekends at his workshop. Sarah looked after the children, did most of the domestic duties and occasionally helped Harry with the books for his building business. Harry wanted to patent and market his kit home but had no money, so Harry's parents put up $100,000 so that he could patent and promote the design. He set up a company 'Harah Kit Homes Pty Ltd' (the name was a combination of 'Harry' and 'Sarah'). Harry was the only director of the company. The kit home was an instant success, particularly with people with rural properties looking for a simple design. Very soon the company owned its own factory, putting together the prefabricated sections of the kit home and Sarah and Harry became quite wealthy. Sarah assisted Harry with the book-keeping and as receptionist. They bought a holiday house at Batemans Bay in Sarah's name alone.

Unfortunately, about 5 years ago, Sarah developed a gambling problem and began drinking heavily. In a 12-month period, 4 years ago, Sarah spent $100,000 on on-line gambling with little to no return. When Harry tried to stop her, she would say things like "You think you're clever but we'd have nothing if it wasn't for the help my parents gave us". Three years ago, Sarah crashed their BMW which was worth about $75,000 at the time. The car was a write- off and insurance would not cover it as Sarah was drunk. Harry had to hire someone else to do the books as Sarah became too unreliable. After that accident, the drinking and gambling stopped and the relationship improved for a while.

About two years ago, demand for Harah Kit Homes began to slow as other designs came on the market. Harry had to downscale the business. The company sold the big factory and moved into a smaller factory. Staff were laid off. As business slowed, Sarah and Harry began to argue more frequently and, about two months ago, Harry moved out and began to live in a flat at the back of the factory. He was diagnosed with heart problems and has had to scale back his work hours. He currently draws an income of about $2000 gross per week. Sarah draws no income other than some social security payments. Harry has been paying her bills and Sarah has been able to access the joint savings account to meet her living costs.

Last week, Harry heard from a family friend that there was a "For Sale" sign out the front of the Batemans Bay property. He also saw that a $20,000 lump sum had been withdrawn from their joint bank account. Harry confronted Sarah about these things. She admitted that she used the money to buy clothes and shoes. She also admitted that she had listed the Batemans Bay property for sale and that there was an interested buyer and contracts had either been exchanged or were about to exchange "any day".

Sarah said: "I've seen a lawyer about property settlement and spousal maintenance. I'm also applying for you to pay child support. I've worked hard all these years. I deserve a share of whatever's left in the company. My parents paid for this house. You'll never get any of it. I'm going to take you to the cleaners!"

Harry said: "We'd not have anything if it wasn't for my hard work. I was the one that got us ahead through my skill. Anyway, you had nothing to do with the company so you can't get any of that. It's totally separate. Besides, when my parents gave me the $100,000, it was a loan and I agreed that if I ever sold up the company, they would get half of the net proceeds. Why should you get maintenance? You won't go and get a job. I don't have to keep you. Marie is old enough now. She can get a casual job. As far as the tax man is concerned my income is next to nothing. I won't have to pay child support. Anyway, your parents are super rich and you'll inherit millions when they die. I'm going to see a lawyer".

The company and all its assets are estimated to have a net value of $5 million. The Batemans Bay property is worth $800,000 (net). Harry has no idea what savings Sarah has or what other loans she may have. Some years ago, when things were going well, Harry began contributing to a private superannuation fund. There is about $500,000 in it. Sarah doesn't know about it and Harry wants to keep it that way.

Harry seeks your advice in relation to property settlement and spousal maintenance. He also wants to know whether he will have to pay child support. Outline your advice with reference to cases and statutory provisions. In your answer, you are NOT required to give specific calculations as to the value of any entitlement (or percentage of the asset pool) either party might receive if the matter went to hearing or any child support calculation.