Is Your Ex Wasting the Property Pool? Here's What the Family Court Does Now

🎧 Listen to this episode if…

• You've been told "add-backs are dead" by your lawyer or your ex
• Your ex is wasting the property pool and you don't know how to stop it
• You've watched assets disappear since separation bank accounts, cars, super
• You're heading into mediation and need to know what to argue
• You want to understand what the Shinohara & Shinohara Case and Shamon & Sharon Case actually mean for your case
• You're worried about delay tactics while your ex quietly drains the joint money

⚠️ Legal Disclaimer

This podcast is general information only – it is not legal advice. The content reflects Australian family law and may not apply to your specific situation or jurisdiction. Always consult a qualified family lawyer about your individual circumstances. Laws may have changed since this episode was recorded.

Episode Summary

You may have heard the rumour – "add-backs are dead." Lawyers are quoting it, ex-partners are using it as an excuse, and people are panicking that there's nothing they can do when the property pool is being drained. In this episode, Laura and Mum unpack what add-backs actually are, why people think they've disappeared, and what the courts are really doing about wastage now.

The short answer? Add-backs aren't on the balance sheet anymore but wastage is absolutely still considered. Thanks to Shinohara & Shinohara [2025], the courts have stopped putting "imaginary money" into the property pool. But thanks to Section 79(5)(d) of the Family Law Act and the case of Shamon & Shamon [2025], wastage now adjusts the percentage split of what's left – and in Shamon, that meant the wife walked away with nearly 100% of the property pool plus costs.

Mum walks through what counts as wastage (selling assets cheap, gambling, blowing money post-separation, gifting funds to a new partner), what doesn't (post-separation income spent on living, ordinary marital spending), and how to protect the property pool before your ex empties it. She also explains exactly what to consider saying if a lawyer or mediator quotes Shinohara at you including the section number, the case names, and the strategy that works.

If you suspect your ex is wasting money or stalling property settlement, this is the episode to listen to before you do anything else.

⏱️ Episode Timeline

00:00 – Are Add-Backs Dead? The Property Pool Myth Going Around

01:00 – Legal Disclaimer & Australian Family Law Context

01:30 – What Is an Add-Back in Property Settlement?

03:15 – The Townsend Case: How Add-Backs Used to Work

04:25 – Property Pool vs Balance Sheet: What's the Difference?

05:25 – The 4 Steps of Property Settlement Explained

05:50 – Why People Think Add-Backs Are Dead: Shinohara Explained

07:15 – "Don't Put Pretend Money on the Balance Sheet"

07:55 – The Real Risk: Ex Spending Everything Before Settlement

08:45 – How Wastage Is Handled Now: Section 79(5)(d)

10:00 – Percentage Adjustments Instead of Balance Sheet Add-Backs

11:30 – The Shamon Case: Wife Got Nearly 100% Plus Costs

13:50 – What to Do If Your Ex Has Already Drained the Pool

14:30 – How to Protect the Property Pool: Caveats Explained

17:00 – Protecting Joint Bank Accounts and Cash

17:50 – Superannuation, Cars and Other Assets

19:50 – Arguing Wastage in Mediation (Not Court)

21:00 – How to Respectfully Tell Your Lawyer They're Wrong

24:30 – Free Webinar Reminder

24:40 – What to Write to Your Ex Before Settlement

26:25 – What Counts as Wastage: Kowaliw, Gambling & More

27:30 – Is Drinking and Drug Use Considered Wastage?

28:15 – Gifts to a New Partner: The Gollings & Scott Case

29:30 – Reckless Spending vs Ordinary Spending

30:15 – Bad Business Decisions Post-Separation

31:10 – So Are Add-Backs Dead? The Final Answer

32:30 – What Evidence You Need to Prove Wastage

33:50 – The Mechanism Has Changed, the Outcome Hasn't

34:25 – Your Toolkit: Section 79(5)(d) of the Family Law Act, Shamon, Townsend, Weir

35:30 – Why Acting Fast Matters in Financial Abuse

36:55 – Reviewer of the Month: Manal from Australia

38:30 – Final Thoughts: Wastage Rules

🎧 Episodes Mentioned in This Episode

1. Equalisation of Super: The Myth That Won't Die

https://youtu.be/YFkOnEsNybw?si=LAQd2SUq_YRVl9Ts

3. The Gilded Cage: Delay Tactics in Property Settlement

https://youtu.be/cs6-jHDt-Qk?si=ufuSLLwVmasbQKsL

4. Financial Abuse and Hidden Assets

https://youtu.be/D3-fV8C4gkM?si=JQMk6eqMXWUktsUf

📚 Links & Resources

📞 1800 RESPECT — 1800 737 732 (24/7 support)

📞 Lifeline — 13 11 14

🚓 Police — 000 (immediate danger)

🌐 The Divorce Course — www.thedivorcecourse.com.au

🎓 The Divorce Course Podcast — www.thedivorcecourse.com.au/blog

🎟️ Free Webinar — www.thedivorcecourse.com.au (click "Reserve My Seat")

Cases Mentioned

• Shinohara & Shinohara [2025] — the case people are misreading https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FedCFamC1A/2025/126.html
• Shamon & Shamon [2025] — https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FedCFamC1A/2025/150.html
• Townsend & Townsend — the original add-back case (the taxi)
• Weir & Weir — the quarry / missing gravel case
• Kowaliw & Kowaliw [1981] — the trashed family home case
• Gollings & Scott — the engagement ring / post-separation income case

Legislation

• Family Law Act 1975 — Section 79(4), Section 79(5)(d) — https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fla1975114/s79.html
• Family Law Act 1975 — Section 90SM (de facto equivalent)

If this episode helped you understand wastage and feel ready to push back when someone says "add-backs are dead," please follow, rate, review, and share The Divorce Course Podcast so others going through the same thing can find this information too.

All our best,

Laura & Lyn

Your Guides By Your Side

Co-Hosts of THE DIVORCE COURSE PODCAST