A deal is a deal. The UK Court of Appeal told, investment manager, Brian Myerson on Wednesday that his divorce settlement stands. The decimation of his personal wealth since his separation last year – thanks to the collapse in the share price of his vehicle – is irrelevant.
No one can blame Myerson for trying, but the court’s decision looks utterly reasonable. Myerson reportedly chose to pay his estranged wife £9.5m in cash while handing over the deeds to a South African beach house. He got to keep shares in Principal Capital Investment Trust, then worth £15m.
That was a big investment bet. It has gone against him – and the court rightly says that’s his problem. Lawyers say the decision will prevent a raft of similar attempts to revise cash divorce payouts that now look generous.
But the lesson here is that Myerson’s ex-wife showed far greater investment savvy than he did. In taking cash, she put value on capital preservation in a volatile and uncertain world. The buying power of her cash has increased significantly since then. Perhaps another hedge fund should hire her.
