header-logo header-logo

26 June 2015 / Edward Heaton
Issue: 7658 / Categories: Features , Family
printer mail-detail

A licence to spend?

Edward Heaton considers a surprising case that illustrates how difficult it is to run a successful add-back argument

This article considers the recent High Court decision in the case of MAP v MFP [2015] EWHC 627 (Fam), [2015] All ER (D) 251 (Mar), in which Mr Justice Moor considered, among other things, the extent to which heavy expenditure by the husband, post separation, should be taken into account in the distribution of assets on divorce.

The case highlights the difficulties involved in running a successful “add-back” argument and may come as a surprise to the casual observer.

Background

The husband was 62 and was the managing director of a property maintenance company in which he had a 95% shareholding. The wife was soon to be 61 and was both the company secretary and the financial control manager of the company. She owned the remaining 5% of the shares.

The parties were married in 1972 and had separated some 40 years later in 2012.

The entirety of the financial resources available to the parties had

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Carey Olsen—Patrick Ormond

Carey Olsen—Patrick Ormond

Partner joinscorporate and finance practice in British Virgin Islands

Dawson Cornwell—Naomi Angell

Dawson Cornwell—Naomi Angell

Firm strengthens children department with adoption and surrogacy expert

Penningtons Manches Cooper—Graham Green

Penningtons Manches Cooper—Graham Green

Media and technology expert joins employment team as partner in Cambridge

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
back-to-top-scroll