When multi-millionaire fund manager Brian Myerson negotiated his divorce, he gave cash and assets to his wife and just took shares in his company as his portion of the joint assets. Cute, right? Well, this is one risk that didn’t pay off for the edgy activist investor: his company’s shares subsequently plummeted 90%, leaving the ex-wife walking off with what basically amounts to 105% of the divorce assets.
Myerson appealed his case in court — and lost. Unfair? Perhaps. Perhaps not. But either way, divorce lawyers have already noticed “a large increase in the number of high earners applying to reduce their maintenance payments, either because they have failed to receive bonuses or because their salaries have been slashed.” Aww, diddums.
City tycoon hit by credit crunch fails to renegotiate divorce settlement [The Guardian]