Divorce Jackpots Leave London Bankers Begging for Relief as Bonuses Vanish

[marmar]

Divorce Jackpots Leave U.K. Bankers Begging for Alimony Relief
By Caroline Alexander


March 31 (Bloomberg) -- Bankers and other high earners in the U.K. are asking to reduce their divorce settlements as the financial crisis shrinks their net worth, according to five family-law attorneys, including Julian Lipson of Withers LLP.

Brian Myerson, the former chief executive officer of Principle Capital Holdings SA, will learn as soon as tomorrow if a London appeals court will alter the terms of his divorce, according to the court calendar. Myerson is seeking to lower the lump sum of about 11.2 million pounds ($16 million) he agreed to pay his wife last year when they ended their 26-year marriage. The value of his share of the settlement dropped to 1.17 million pounds within 10 months.

“He made a commercial decision to put his money on red, and the spin of the roulette wheel came out black,” said Lipson, family-law practice group leader at Withers in London, who isn’t involved in the case. “The judges may feel sorry for him, and it was an unfair transaction, but it was a decision he took.”

While Myerson will have a hard time winning, other high net worth individuals are having more luck renegotiating alimony payments out of court, the five family-law attorneys said. Lipson said his firm received three times as many inquiries as it would normally get in a year between November and December.

The trend is being fanned by more than 100,000 job cuts in the European finance industry and bonuses dropping 60 percent since the crisis began, according to the London-based Center for Economics and Business. ...........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=aeh8cnuc.IHg&refer=home

[LiberalFighter]

1. If the settlement was for a lump sum then he should pay it. Otherwise,

if it was for regular payments then there should be a renegotiation to take that into account. BUT then when it gets better the spouse should benefit. Aw what the hell the courts will be too busy to keep changing the terms every time there is a change his financial status.