Family Law - Credit Crunch

May 28th 2009

With the current global financial crisis having such an impact on property, shares and business prices is it a wonder that attempts have been made by the financially stronger party of a relationship to vary previous financial settlements that were reached before the international recession?

Take Mr Myerson a 50 year old business tycoon for example who sought to achieve just this by asking the court to vary a financial agreement between him and his wife which in the current financial climate he considered to be unfair. Mr Myerson argued before the Court of Appeal that the global financial crisis and collapse in share prices rendered an Order between him and his ex-wife unworkable and that the order should be set aside as the reduction in valuations constituted a new event.

Although Mr Myerson's appeal was unsuccessful and the case confirmed that in most situations financial settlements cannot be reopened due to a natural process of price fluctuation, the case certainly opened up discussion of those financial settlements that had been based upon City bonuses or upon a party's ability to pay maintenance at the time of an agreement which had since the current financial climate significantly changed. In those cases a renegotiation of a financial Order may be possible with an appropriate application for a variation of the terms of the agreement made to the court.

If you would like further information or advice on how RFB solicitors can help you with potential variation applications or indeed any other family matter please contact John O'Callaghan, Head of our Family team on 020 7613 1402.