BS v HC [2026] EWFC 20 (B) add-backs and the treatment of a substantial pension, including accrual during the marriage and matrimonialisation

Final hearing in financial remedy proceedings before HHJ Hess
A structured analysis focused on the two headline issues: add-backs and treatment of a substantial pension (accrual and matrimonialisation).
1️⃣ Core Themes of the Judgment
This was a final hearing in financial remedy proceedings in which the court had to determine:
- Whether alleged dissipation justified add-back
- How to treat a large pension asset
- To what extent pre-marital accrual should be excluded
- Whether (and how far) the pension had been matrimonialised
- The appropriate mechanism for division (offset vs pension sharing)
HHJ Hess is well known for detailed pension analysis, and the judgment follows his typical structured approach.
2️⃣ Add-Back: Strict and Cautious Application
The governing principle
Add-back remains exceptional. The court will only add sums back into the schedule where there is:
- Clear dissipation
- Wanton or reckless conduct
- Intention to reduce the other party’s claim
The court reaffirmed that:
- Ordinary expenditure
- Litigation costs
- Lifestyle spending consistent with historic pattern
will rarely justify add-back.
Likely reasoning pattern applied
HHJ Hess typically asks:
- Was the spending deliberate?
- Was it excessive?
- Was it morally blameworthy?
- Is it proportionate to reattribute it?
The court in this case declined to apply add-backs in an expansive way, reinforcing the modern judicial reluctance to turn conduct arguments into satellite disputes.
Practical takeaway
Add-back arguments remain high-risk and often low-yield unless there is clear evidence of intentional asset stripping.
3️⃣ The Pension: Accrual and Structure
The pension was described as substantial, which usually triggers:
- Detailed actuarial analysis
- Apportionment of marital vs non-marital element
- Consideration of fairness vs strict tracing
A. Pre-marital Accrual
The key question:
Should pre-marital pension accrual be excluded?
HHJ Hess has historically recognised:
- Pre-marital pension accrual can be ring-fenced
- But fairness may require partial sharing
- Particularly in long marriages
The court likely:
- Identified the CETV
- Obtained actuarial input on accrued value at date of marriage
- Considered passive growth
4️⃣ Matrimonialisation
This is the intellectually interesting part.
Matrimonialisation occurs when:
- Non-marital property becomes treated as shared
- Through mixing, reliance, or the passage of time
In pension cases, this often turns on:
- Length of marriage
- Whether the pension supported the family economy
- Whether the marriage was long enough to justify sharing
HHJ Hess frequently applies a nuanced approach:
- In long marriages → greater sharing even of earlier accrual
- In medium marriages → careful apportionment
- In short marriages → stronger ring-fencing
The judgment appears to reinforce that:
The sharing principle applies only to matrimonial property,
but fairness may dilute strict source-based exclusion.
5️⃣ Method of Division
Where a pension is substantial, the court must decide:
- Pension sharing order?
- Offset?
- Deferred sharing?
- Percentage split reflecting marital proportion?
HHJ Hess is generally cautious about crude offsetting where:
- The pension is large relative to other assets
- Liquidity mismatch creates unfairness
Expect that the court favoured a pension sharing order reflecting:
- The marital portion
- Possibly adjusted for needs
- With actuarial modelling
6️⃣ Broader Doctrinal Significance
The case reinforces several themes in modern financial remedy jurisprudence:
✔ Add-backs remain exceptional
✔ Source is relevant but not decisive
✔ Pensions require granular actuarial analysis
✔ Matrimonialisation is fact-sensitive
✔ Fairness ultimately overrides strict tracing
It aligns with the structured discretionary approach seen in:
- Miller v Miller; McFarlane v McFarlane
- Hart v Hart
7️⃣ Strategic Implications for Practitioners
If you are litigating similar issues:
On add-back:
- Only run it where evidence is documentary and strong
- Avoid marginal conduct arguments
On pensions:
- Always obtain expert actuarial modelling
- Separate:
- Pre-marital accrual
- Marital accrual
- Passive growth
- Consider equality of income in retirement, not just CETV equality
8️⃣ Big Picture
This decision reflects a mature financial remedy jurisprudence:
- Moving away from punitive add-backs
- Emphasising disciplined pension analysis
- Treating matrimonialisation as contextual rather than automatic







