Tycoon fails in court bid to cut divorce settlement

Judges rule credit crunch is no reason to reduce payments

Rich divorcees whose fortunes have been hit by the credit crunch cannot go back to court to renegotiate the amount of money they owe their ex-wives, the Court of Appeal has ruled.

In a case which will affect scores of claims brought by slump-hit millionaires, the appeal judges refused to cut an £11m divorce settlement agreed by financier Brian Myerson with his former wife, Ingrid. The judges described the financial crisis as a "natural price fluctuation" rather than a truly unforeseeable economic event that would justify a change in the terms of the divorce settlement.

"When a businessman takes a speculative position in compromising his wife's claims, 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 judges hearing Mr Myerson's appeal.

But the 50-year-old tycoon, who claims he is £500,000 worse off because the value of his assets had fallen, said he would now go back to court to try to use the original terms of the settlement to cancel further payments to his ex-wife.

Under the settlement, Ingrid Myerson, a sculptor who lives in Hampstead, north London, is being paid a total of £9.5m over four years. She has also received a £1.5m property in South Africa. The settlement represents 43 per cent of the couple's £28.5m assets at the time of their divorce.

It was agreed that she should get a cash settlement and he would keep all the shares in his company, Principle Capital Investment Trust. But the court was told the value of these shares had fallen from £3 to 27.5p as a result of the economic crisis. Martin Pointer QC, representing Mr Myerson, told the judges: "The husband's case is that the unforeseeable combination of forces at play within the global economy has undermined the assumptions upon which the order was made."

Mrs Myerson's solicitor, Ray Tooth, said his client was "very relieved" by the ruling but declined to comment further. Jeffrey Nedas, an expert matrimonial forensic accountant who was involved in the case, said the judgment would act as a deterrent to wealthy divorcees who wanted to use the recession to reduce their settlements.

Brian and Ingrid Myerson married in December 1982 and have two sons and a daughter. They ended their 26-year marriage in February last year.

Lord Justice Thorpe, giving the ruling of the Court of Appeal, said those "contemplating an attempt to reopen an existing ancillary relief order on the grounds of subsequently encountered financial eclipse would be "well advised to heed the warning that very few successful applications have been reported".