with Melody van der Wallen, Principal Lawyer at Wallen Family Law

When relationships end, it’s not uncommon for one person to worry that the other is hiding or moving money, selling property, or spending joint savings before the asset pool is divided.

Melody van der Wallen, Principal Lawyer at Wallen Family Law, says concerns like these are raised in almost every property matter. “People often tell me their ex has emptied an account or bought something extravagant post separation,” she explains. “They want to know whether that money can be added back into the pool.”

What Are Add-Backs?

Traditionally, add-backs were used by the courts to notionally “add back” money or assets that one party had dissipated — for example, through reckless spending, paying legal fees from joint funds, or giving money to family or friends.

The idea was to treat that money as if it still existed, so that the other party wasn’t unfairly disadvantaged.

“For many years, add-backs were a common feature in property cases,” Melody says. “But the law has shifted significantly.”

The New Approach — Add-Backs Are Largely Dead

Recent case law has made it clear that traditional add-backs are gone, meaning the court will not addback lump sums of spent money into the asset pool.

“The reasoning is that once money is gone, it’s gone,” Melody explains. “The Court can’t divide something that no longer exists.”

Rather than adding the funds back into the pool, the Court may instead adjust the overall percentage division to recognise one party’s premature or wasteful use of assets.

“In other words,” Melody says, “the Court might not ‘add back’ the money — but it can still compensate the other party through an adjustment in their favour.”

How the Court Deals With Hidden or Moved Assets Now

Each party has a strict legal duty to make full and frank disclosure of all assets, liabilities, and financial resources. Failure to do so can lead to serious consequences.

“If a party has concealed assets, the Court can draw adverse inferences about their honesty and make an award that assumes they’re worth more than what they’ve disclosed,” Melody explains.

Subpoenas, bank records, business documents and forensic accounting can all be used to track missing money or identify unexplained transactions.

“Transparency is everything,” Melody says. “Once you start hiding things, the Court will assume the worst — and that can seriously backfire.”

What You Can Do If You Suspect Hidden Assets

If you believe your former partner has moved or spent money improperly, early legal advice is crucial.

“We can act quickly to preserve property or obtain disclosure orders,” Melody explains. “In urgent cases, the Court can even freeze (injunct) assets to stop them being sold or transferred.”

Documentation is key — including bank statements, loan records, text messages or anything showing the timing and purpose of a transaction.

“The sooner you seek advice, the easier it is to trace what’s happened,” she adds.

Quick Answers

Are add-backs still used today?
No. The courts have moved away from add-backs. Instead, judges may adjust the final percentage division to account for wasteful or premature spending.

What happens if my ex hides assets?

They have a duty to make full disclosure. The Court can draw negative inferences, order disclosure, or adjust the division in your favour.

Can the Court freeze assets if I’m worried money will disappear?

Yes. Urgent injunctions can be sought to stop property from being sold or transferred until the matter is resolved.

What should I do if I suspect assets have been moved?
Gather as much documentation as possible and seek legal advice quickly. Early action increases the chances of recovery or compensation.

From Melody

“The days of add-backs as a standard remedy are over. If something’s been hidden or spent, the Court looks at behaviour and adjusts accordingly — but it won’t pretend the money still exists. That’s why early, strategic legal advice is so important.”

– Melody van der Wallen, Principal Lawyer, Wallen Family Law