A recent decision by a Deputy District Judge has provided a useful refresher on the legal principles surrounding “add-back” in financial remedy proceedings, particularly in lower-value cases where the conduct of one party significantly impacts the overall asset division.
In this case, the parties had cohabited since 2008, married in 2014, and separated in 2022. They had one child. Both earned modest incomes (c.£48,000) and the main asset was the former matrimonial home (FMH), with equity of approximately £138,000. The Husband had retained other assets, including a car and motorbike, and sought a £65,000 lump sum from the Wife as part of a clean break.
The central legal issue was whether the Husband’s use of certain assets, specifically, funds and a vehicle he took when returning to his home country should be “added back” into the asset pool due to reckless or wanton dissipation.
Drawing on key authorities including Martin v Martin [1976], Vaughan v Vaughan [2008], and MAP v MFP [2016], the Judge confirmed that add-back should only apply where there is clear evidence of reckless or wanton expenditure that disadvantages the other spouse. However, such a notional reattribution cannot be treated as cash available to meet needs.
While the Judge found the Husband’s conduct met the threshold for add-back (£47,000), this sum was not deducted from his share due to his housing needs. Instead, the overall division was adjusted: 68% to the Wife, 32% to the Husband, factoring in both needs and his prior benefit.
If you're going through separation and suspect that your spouse has recklessly spent or hidden marital assets, this case shows there may be grounds to “add back” that value into settlement calculations. However, the court will look closely at the facts, including whether such conduct was genuinely reckless and whether each party’s needs, particularly housing, can still be met.
Our family law solicitors can provide guidance and support in navigating the complexities of Family Law.
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please contact our team of solicitors.
Zubair Dharamsi Gowsigan Gnanakumaran Maisa Riazi
Partner Solicitor Legal Assistant
zd@roselegal.co.uk gg@roselegal.co.uk mr@roselegal.co.uk
