I recently had the good fortune to see this movie for the first time in a Paris movie house. I'm surprised to read a recent post about the poor film quality on the DVD release, because this film showing in Paris was absolutely pristine! Anyway, I'd put The Awful Truth right up there with the best of the screwball comedies of the era. (I think it's much funnier than the overrated (IMHO) Bringing Up Baby (which also stars Grant).) Irene Dunne really busts out of her more ordinary characters and shines in this film with humor, intelligence and, in the wonderful final scene, even sexiness! Grant, plays a fairly unsympathetic character, yet remains charming as hell.
***SPOILER*** My one problem with the story is the fact that by the end, Grant never suffers the consequences for the affair he apparently returned from at the beginning of the film. ***END OF SPOILER*** Special kudos for skillfully incorporating the dog. In far too many films featuring animals, the action momentarily screeches to a halt to accommodate an inserted shot of the animal's "humorous" reaction; The Awful Truth avoids this trap, and the dog (Asta from the "Thin Man" series) contributes seamlessly to the humor and the plot.