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Add-backs on divorce

Before pursuing a claim for add-backs, consider the merits of your client's case, advises Claire Reid

9 December 2014

On the breakdown of a marriage, one spouse can be quick to criticise the other’s spending, seeking to “add back” monies which they say have been spent unreasonably. This is an issue which I have seen raised in an increasing number of cases in recent years. It appears to be reflective of a desire to “punish” what is viewed as inappropriate behaviour by the other party and a concern that monies which previously financed one household must now be stretched between two.

“Reckless” or “wanton” transactions or spending trends can be taken into consideration by the court as either “conduct it would be inequitable to disregard”, or as falling within the catch-all provision of “all the circumstances of the case”.

However, before including a claim for add-backs in your client’s Fo...

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