The expression “timing is everything” has come back to
haunt Brian Myerson, a wealthy City tycoon who last month failed in his bid to
renegotiate his multi-million pound divorce settlement on the grounds he had
been wiped out by the recession. A judge told him he was responsible for
agreeing the settlement and just because his shares had fallen in value since
then, it didn’t mean he was legally entitled to change it.
The judge
also issued a stark warning for fellow investors thinking about doing the same
thing. They would all be "well advised to heed the warning that very few
successful applications have been reported", he said.
Mr
Myerson’s unsuccessful legal challenge may have put off some people, especially
the rich, from beginning – or continuing – with divorce proceedings until the
economy starts to recover. This would be a mistake.
For a
start, no one knows for sure when the “green shoots of recovery” will emerge:
predictions range from a year to 18 months, and even then they’re only educated
guesses.
The
divorce process can take up to two years to complete – longer in complicated
cases – so if you’re planning a “recession divorce”, the time to be starting it
is now.
Even more
importantly, timing the completion of your divorce with the predicted end of
the credit crunch makes psychological as well as economical sense, for it means
you can move on in both your business and private lives.
I’m aware
that some people are reluctant to begin proceedings at the moment, even though
a fall-off in the value of their assets may result in a lower settlement to
their spouse, and instead are waiting to see what will happen to the economy.
Wealthy entrepreneurs especially might believe they will lose out as much as
their estranged partners in a recession-brokered settlement. They may also
think they’ll feel stronger mentally to deal with the ending of their marriages
once their beleaguered businesses return to profit.
Such
procrastination is misguided, however. A good divorce lawyer will achieve the
best settlement possible, recession or no recession, and if proceedings start
now, they should be done and dusted by the time the downturn begins to up-turn.
That means people can start afresh, with the gloom of the credit crunch and
their divorces behind them.
To get
your business back on track requires focus and energy: if you have to deal with
a divorce as well, that focus and energy will be dissipated. Who wants to be in
a situation where the economy is moving forward but you can’t because you’re
being held back by fraught and complicated divorce proceedings?
Even in
financially good times, many men say, post-divorce, that they need to go out
and make up the assets they have lost to their ex-wives: how much easier that
is to do when the economy is healthy.
So if
you’re hesitating about whether now is the right time to initiate a divorce proceeding,
my advice is that, yes, it is! The coming months might be tough, emotionally
and business-wise, but when it’s all over you will be ready to springboard into
your new life.

