Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

As Economy Tanks, So Does Alimony

Wealthy argue that falling assets make old settlements unfair

By Rob Quinn, Newser Staff

Posted Mar 24, 2009 9:39 AM CDT

(Newser) – The impact of plunging asset values is making itself felt in divorce courts, reports the Daily Telegraph. Celebrities and corporate high-fliers pleading poverty have managed to wrangle reduced payments to their exes in recent months. Lawyers warn that the trend toward cut-price settlements is now becoming mainstream and urge estranged couples to look hard at their finances before taking legal action.

Lawyers advise would-be alimony recipients to hang on if they can until asset prices rebound—and suggest those with the checkbook get out while the getting's cheap. Marriage counselors, meanwhile, say the prospect of ending up with nothing should be even more incentive for couples to work hard at making their marriages last.

[Images (2)]

[Quotes (1)]

British comedian John Cleese managed to have his divorce settlement reduced by half after complaining that he was being squeezed by the plunging value of his property portfolio. (AP Photo/Paul Miller)

Divorce lawyers in the US and UK are seeing a trend towards renegotiated divorce settlements as wealthy clients complain that they cannot make payments agreed upon in better economic times. (Shutterstock)

« Prev« Prev | Next »Next » Slideshow

I asked him whether he was going to stay or leave the marriage. He replied that he needed to study the figures and was going to run it through his spreadsheet that evening and make a decision. - London divorce lawyer, on a client meeting

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

OTHER STORIES ON OUR RADAR

AP Photo

35 Brutally Honest Reasons Men Say No to Sex (The Stir)

Which Entertainer Pulled Out of 'Inappropriate' Whitney Tribute? (NewsOne)

The French Government Wants to Tone My Vagina (Slate)

Obama Photo on Facebook Helps Catch Drug Dealer (HuffPost)

Hottest Women to Ever Appear in the SI Swimsuit Issue (Bleacher Report)

Partner Links

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

COMMENTS

Read the comment policy

Showing 1 of 1 comment

bacimom

Mar 24, 2009 3:54 AM CDT

I'm sorry... there are working mothers everywhere trying to get their child support checks from deadbeat dads even in a good economy. .. now? The concept of alimony (unless your spouse is disabled in some fashion in downright archaic. Everyday women (alimony is usually paid to the wife) generally are working and even those staying home with the kids frequently subsist on child support and minimal housing alimony if any. The big dollar alimony settlements for people who just can't manage to live on less than millions a year to maintain their lifestyles need to get a life first! The spouses egregious financial "needs" are as bad as the wage collectors at the big Corps. F-k you, hurray for me and if the great unwashed masses suffer, oh well. A bas les aristos !

What's Popular Now on Facebook

Rick Santorum: Birth Control Is 'Not OK'

Valentine's Day Role-Playing Goes Very Wrong

Telegraph (UK) (Source Grid »)

Fund manager argues financial crisis makes divorce settlement unfair
Times (UK)

Money • World

divorce • marriage • divorce settlement • financial crisis • recession depression

More Newser Stories

Man, 99, Divorces Wife Over 70-Year-Old Affair

He found letters she wrote to her 1940s lover

(NEWSER) - If you think divorce is a tragic way to end an 18-day marriage , how about divorce as an end to a 77-year marriage? An Italian couple—he 99, she 96—are calling it quits after the husband discovered that his wife had an affair ... in the 1940s. The Telegraph reports that just before Christmas, "Antonio C" stumbled upon letters in a drawer that "Rosa C" wrote to her lover. She admitted to the affair, but her pleas that he reconsider apparently fell on deaf ears. The two, who have five kids, a dozen grandchildren, and one great-grandchild, are set to become the world's oldest divorcees. (In other divorce news, click to find out which celeb just lost half his fortune in his divorce .) More»

Whoops: Court Papers Show Newt Filed 1st Divorce

Gingrich said Jackie wasn't 'young enough': old friend

(NEWSER) - More bad news for Newt on the marriage front: Looks like his version of his first divorce doesn't quite add up. Court papers show that he divorced Jackie Gingrich 13 years ago, and not the other way around, as his website contends . "The marriage of the parties is irretrievably broken," his divorce complaint read—at a time when he was seeing a 28-year-old congressional aide who later became his second wife. Jackie Gingrich's petition said that "she does not desire [a divorce] at this time." More»

Before Divorce, Try ... Splitting Up

Lots of marriage counselors think six months can do the trick

(NEWSER) - The Wall Street Journal dips into marriage therapy, talking to a host of counselors who think a separation of about six months can work wonders for a troubled relationship. It can't just be one person storming out, though. Both partners need to agree on finances, child care, and other logistics. It also needs to be long enough to give both partners time to truly assess things—hence, the six-month time frame. One therapist estimates that about half the couples she puts on this path wind up back together. More»

Husband Burned by Madoff Wants New Divorce Deal

He lost his share of settlement in Ponzi scheme

(NEWSER) - Bernie Madoff is messing up divorce settlements now, too. A husband wants his wife to give him back millions of dollars because he lost his share of their combined wealth in Madoff's Ponzi scheme, reports the New York Times . Steven Simkin and Laura Blank split up in 2006 and divvied up $13.2 million in assets. She took hers in cash, while he kept his under the care of Madoff. When Madoff's scheme went poof, Simkin filed papers to revise their settlement. His wife refused, and the matter has now reached New York state's highest court. More»

Happy Teens More Likely to Become Divorced Adults

Study of 2,276 people returns surprising result

(NEWSER) - Here's a less-than-intuitive finding: Happy teens are more likely to end up divorced than unhappy teens. The tidbit came out of a larger study of happiness, in which researchers looked at data on 2,276 people—that had been collected since they were born in 1946. A number of their conclusions aren't very jarring: Those who were happier and better adjusted in childhood were more likely to report that they were socially active adults with good mental health and job satisfaction. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

As Economy Tanks, So Does Alimony