Case study
Add-back from ‘The Black Hole’
The Client
Heather and Harry were married for 15 years and had a 14-year-old daughter.
They owned four properties, three in the UK and one in France.
Harry was the primary wage earner in the latter years of their marriage, although Heather enjoyed a very successful career and was the principal wage earner before becoming a mother.
The Challenge
Heather had an excellent understanding of their financial affairs and believed her husband had spent in the region of £1m on extra-marital activities.
Following the division of all the assets during divorce proceedings, Heather wanted this amount added to her projected settlement. We were instructed to scrutinise Harry’s financial disclosure.
The Solution
We analysed multiple bank and credit card accounts (35 in total) in multiple currencies, covering a five-year period, to ascertain how much Harry had spent on his mistress. We also tracked and recorded all personal and corporate inter-account transfers, before separating the personal and corporate financial activity.
We concluded that Harry had spent more than £1m outside of the marriage. Our findings also showed that Harry had failed to disclose the purchase of a flat in London and a flat he had rented in Mayfair for his mistress. She’d also been given a credit card, which she used up to its credit limit each month. He bought her lavish presents, including jewellery and holidays.
The Outcome
Our findings helped Heather’s lawyer secure an Add-back of more than £850,000.
We’ve since learned that Add-backs are extremely challenging to achieve.
Heather’s lawyer has no doubt that our analysis was key in convincing the judge that this additional money should be awarded to his client.
He remains one of our greatest supporters to this day.
Work with us
Why Pennywise Consultants?
Does this story sound familiar? If it does, Pennywise Consultants can help. We specialise in creating and challenging lifestyle budgets and income needs schedules in mediation and legal proceedings.
Our independent, impartial reports are clear, easy to understand and presented in a format accepted by judges, court officials and legal professionals. Many top-tier law firms in England and Wales have successfully used our budgets to achieve fair outcomes.
We go the extra mile to help you and your clients make big decisions quickly and confidently, providing certainty and peace of mind. We can do the same for you.
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