This is a very interesting story and has far reaching consequences for high net worth investors, top businessmen, fund managers, bankers who divorced and agreed to a settlement over the last couple of years, especially those who may have even become unemployed or facing business downturn. The financial settlements hammered out previously will continue to stand inspite of unemployment or decline in portfolio values or loss of business income etc.
A fund manager who kept his money in investments and negotiated a settlement with his wife, went back to court to adjust his payment as agreed in the settlement because the value of his investments declined tremendously due to global financial downturn.
However, the court argued that, the fact, that the banker kept his money in 'speculative investments" does not give him the privilege to change the agreement.
Moral of the story: Don't divorce and don't keep your end of the money in investments at the same time! ...and ...Keep your wife and your money at home!
Some excerpts:
"However, three senior judges on Wednesday warned that even a dramatic “financial eclipse” would not justify reopening settled deals, voluntarily reached by both sides. Mr Myerson, the Court of Appeal emphasised, had knowingly taken a “speculative position” on Principle Capital’s fortunes.
“Why should the court subsequently relieve him of the consequences of his speculation by rewriting the bargain at his behest?” said Lord Justice Thorpe, one of the most senior family judges."
"Should he fail to make those payments, Ingrid Myerson has several options, says Kate Landells, a lawyer at Withers, including asking for a court summons against him or trying to force her ex-husband into bankruptcy."
Fund manager loses bid to scrap divorce deal
By Megan Murphy, Law Courts Correspondent
Published: April 1 2009 12:08 | Last updated: April 1 2009 23:21
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