The End of "Add-Backs" to the Asset Pool: How the Shinohara Ruling Changes Your Property Mediation

If you are currently navigating a property settlement, you’ve likely heard your lawyer or mediator talk about the “asset pool”—the total value of everything you and your partner own.

For decades, there was a common rule in Australian family law called “Add-Backs.” If one partner spent a large amount of money after separation—perhaps on legal fees, a new car, or even through “wastage” like gambling—the court could pretend that money was still there. They would “add it back” to the pool so the other partner didn’t lose out.

However, as of July 2025, a landmark court case called Shinohara has changed this rule forever. At Brisbane Mediations, we believe that understanding these changes is the first step toward a smoother, fairer mediation process. Here is what the Shinohara ruling means for you.

1. The “Ghost Money” is Gone

The core of the Shinohara ruling is simple: The court will now only divide what actually exists.

Under the new law (the Family Law Amendment Act 2024), the “asset pool” must only include “existing” property. You can no longer put “phantom” money back onto the balance sheet just because it should have been there. If the money has been spent, it is officially removed from the list of assets to be divided.

2. How is “Fairness” Managed Now?

You might be wondering: “If my ex-partner spent $50,000 of our joint savings on legal fees, and it’s no longer ‘added back,’ do I just lose my share of that money?”

The answer is no, but the way we fix it in mediation has changed. Instead of changing the size of the pool, we now adjust the percentage split of what is left.

• Contributions (The Past): We can argue that because one person spent a significant portion of the assets, the other person’s “contribution” to the remaining assets is effectively higher.
• Future Needs (The Future): The court (and mediators) can look at the “wastage” of funds as a reason to give the “innocent” partner a larger slice of the remaining pie to ensure the final result is just and equitable.

3. Why This Matters for Your Mediation

In a mediation session at Brisbane Mediations, the Shinohara ruling changes our strategy in three key ways:

• Better Record Keeping: Since we can’t just “add back” spent money easily, having clear evidence of where money went is more important than ever. We need to see the “why, when, and how” of any spending.
• A Shift from Math to Merits: In the past, add-backs were a simple math equation (e.g., “Add $20k back to the pool”). Now, we have to have a deeper conversation about why it is fair for one person to get a bigger percentage of the remaining assets to make up for that spending.
• Urgency in Protecting Assets: Because spent money is “gone” from the pool, there is a much higher incentive to reach an agreement quickly—or seek an injunction—before assets are depleted.

4. Our Advice for Couples

If you are preparing for property mediation, keep these three things in mind:

1. Don’t spend joint funds unilaterally: It may not be “added back” as a line item, but it will almost certainly result in you getting a smaller percentage of what remains.
2. Be transparent: Hiding or spending money usually backfires during the “contributions” phase of mediation.
3. Focus on the “Now”: We will help you build a balance sheet that reflects your current reality, and then work on a percentage split that acknowledges the history of your finances.

How Brisbane Mediations Can Help

The Shinohara ruling has made property settlements a bit more complex, but it also encourages a more holistic look at what is “fair.” Our experienced mediators stay up-to-date with these legal shifts to ensure that your settlement isn’t just a math exercise, but a truly equitable resolution.

Are you ready to settle your property matters with clarity? [Contact Brisbane Mediations today] to book a session.

*** Disclaimer: This post provides general information and is not legal advice. We recommend all parties obtain independent legal advice before attending mediation.