Trying to negotiate a financial settlement during divorce is never without its difficulties and matters have been further compounded by the volatility of current market conditions.

There are a number of high value test cases to go before the Court shortly whereby wealthy City executives are trying to re-negotiate their divorce settlements on the basis that they are no longer earning significant salaries or receiving large bonuses. But how does this effect those who are not City executives and in receipt of an average salary?

The main asset of the vast majority of clients is their family home. When the housing market was buoyant and property prices high divorcing couples had the option to sell the former family home releasing enough equity to pay off any debts. Thus, both parties were then in the position of being debt free with enough equity for a deposit on a new property. In the current economic climate with house prices being so low and consumer debt being so high a lot of divorcing clients are no longer in this position.

Even in the “big money” cases many are delaying settlement until the eleventh hour such is the volatility of the market. Of course, the housing market is expected to recover which may ease the financial burden of divorcing clients but will not make the process any easier.