A federal court judgement has determined more than $100,000 will be held in court after former police officer Louis James Mahony, accused of murdering his former partner in 2009, attempted to claim their life insurance.
Mr Mahony's partner Lainie Coldwell was found dead at the base of a tree with head injuries in Charleville, Queensland on August 25, 2009.
Just weeks before Ms Coldwell's death, Westpac Life had issued a life insurance policy to the couple, providing a payment of $150,000 to the other in the event of a death.
Days after the fatal incident, Mr Mahony's solicitors notified Westpac Life of his claim to policy money.
Westpac Life requested information, including a copy of the coroner's report, after a claims officer became concerned whether the death was accidental or suicide.
In the course of its investigations, Westpac became aware that insurance company Swiss Re had also issued life insurance to Ms Coldwell of over $1.7 million that had been taken out at the same time as Westpac Life's policy.
Suspicions arose and in 2010 Westpac Life sought information from other policies and superannuation funds from Mr Mahony's solicitors.
It was resolved the company would await the coroner's report before any money was paid out.
In 2011, two years after the incident, a Brisbane homicide squad began an investigation into Ms Coldwell's death and requests for information from Westpac Life were made.
The coroner resolved not to issue its report to Westpac Life until police matters were finalised.
In August 2015, Mahony's solicitors filed a claim to the Charleville Magistrates court alleging a breach in contract regarding "loss and damage" from non-payment of his life insurance policy with Westpac Life.
In December Mr Mahony was charged with the murder of his former partner Lainie Coldwell and for dishonestly inducing or attempting to induce insurance proceeds from Swiss Re Life, Health Australia Ltd, Westpac Life and Sunsuper.
The matter of who Westpac Life's $150,000 life insurance policy would be payable to was brought before the Federal Court in May 2016 after Patricia Marlene Coldwell, executor of the late Ms Coldwell's estate, also made a claim to Westpac Life for the life insurance funds.
The judge ordered the $150,000 in life insurance policy be paid and held in court, pending a future determination of the person(s) entitled.
Of that money paid into court, the judge issued $20,000 to be paid back to Westpac Life to cover the costs of court proceedings.
Mr Mahony was expected to stand trial in 2017.