Clawback on capital increase

Parra v Parra (FD [2002] 3 FCR 513)

One of the family assets was a piece of land, known as Star Works, that was expected to increase in value in the long term because of planning permissions that would not be forthcoming in the short term. It was not disputed that there should be a 50% split of the assets. It was also accepted that there should be a clean break because the relationship between the spouses had deteriorated and become bitter. However, such an order would only be appropriate if the wife were in a position to benefit from the long-term investment in Star Works. This was achieved by granting the wife a clawback, enabling her to share in possible future profits on the developed land.