The UK Court of Appeal will hear a landmark case today in which a husband is seeking to renegotiate the terms of a divorce settlement to reflect a loss of assets as a result of the credit crunch.

The individual in question works within the financial services sector in London and has seen his personal wealth collapse as a result of market turmoil. A divorce settlement having been previously granted, he now asks that this be reviewed.

The result of the Court of Appeal case is significant as it will set a precedent to determine whether court orders can be revised in light of one divorcing spouse suffering declines in their wealth. 

“This case has widespread implications for divorcing couples across the country.  The hope is that the Court will give much needed guidance as to whether recent economic events constitute sufficient reason to enable paying spouses to revisit the terms of financial orders,” said Philip Way, partner in the family and matrimonial team at Mills & Reeve, the law firm representing the individual bringing the case.

The court’s decision may also have an impact on affluent non-UK residents as London is widely acknowledged as the world’s capital for divorce.