The potential British record for a divorce settlement was narrowly avoided when it was withdrawn at the eleventh hour by the wife. Jeweller Laurence Graff looked set to have to pay out a staggering £1 billion to his wife Anne Marie, after their marriage of forty-seven years came to an end; however the settlement was withdrawn in a cloud of mystery.

The figure would have easily set a new British record for a divorce settlement, with the current record set at just £48 million. It is rumoured that the couple have reconciled their marriage.

A statement was released on behalf of the billionaire jeweller stating that he and his wife didn’t intend to divorce. Graff started life as a cleaner in London, but has risen to become the 31st richest man in the world.

The statement from Graff stated:

Mr and Mrs Graff deny that they are, or have any intention of, getting divorced.

According to his spokesman, the fact that the case had been listed was an error. A spokesman for the court disagreed however and said that the case was listed, but removed at the last minute due to judicial discretion.

Calls for couples who use ‘collaborative’ divorce lawyers to benefit from legal aid are being supported by divorce solicitors in Liverpool. Research has shown that as many as 85% of divorce cases that handled with collaborative law are resolved much faster, and more importantly, cheaper, than any other form of divorce.

However, couples who use collaborative law have so far not been able to claim legal aid as the Legal Services Commission has refused to allow it to qualify.

The president of Resolution, a body that represents divorce lawyers and family lawyers, Godfrey Freeman, stated:

We’re very keen on it as a process. Resolution felt that it was another alternative to going to court.

Collaborative divorce cases feature negotiations held openly and frankly around a table, after both parties have agreed to a peaceful collaboration.

Godfrey Freeman did highlight that collaborative divorce wasn’t the answer to everyone’s problems, but it has a high success rate.

I’m not saying this is a ‘solve all’ thing by any means, but we would look at what’s best for the individual clients and for a good number of people this has proved a success.

But, at the moment, we can only deal with it on a fee-paying basis. We’ve been in negotiations with the LSC to persuade them that it would be a money saver all round.

New research has shown that the government’s ‘Working Families Tax Credits’ have made getting divorced a profitable action for mothers. The research conducted by Professor Marco Francesconi shows that the divorce rate has risen by over 100% in many different categories in the UK between the years 1999 and 2003.

Prof Francesconi believes that the rise in divorce rates was boosted by the child care money that the government paid to single mothers. He claims that the money, which was intended to help single mothers, has instead generated single parent households as mothers have seized the opportunity to earn a living simple by divorcing their husbands.

It could be around £30, £40 per week extra which the claimant will receive, so at the margin, when you are talking about poor households, you’re talking about significant amounts of money.

In this case, I get an even bigger benefit from the state, because I can receive the tax credit and the childcare component of it and I don’t have to care for a husband who’s not contributing to the welfare of the family.

Labour introduced the Working Families Tax Credit scheme in 1999 when it proudly announced that as many as 1.5 million families would benefit from the extra money. However it does appear that the money has acted as a poison chalice to many marriages.

It seems that the economy is forcing some ex-husbands to head back to court to get their financial settlements reduced, as they claim they can’t afford to pay the money originally awarded by the divorce courts. Most of the men looking to get the settlements reduced are city bankers who have had their bonuses cut due to their bank’s poor performance.

Divorce lawyers in London are currently taking on city banker clients in a bid to get their settlements reviewed in court. One divorce lawyer, Sandra Davis, stated in an interview with The Independent:

We have had a number of male clients who have been forced to renegotiate settlements where maintenance awards were substantial. These were based on projected bonuses and salary levels which have not been sustained in the economic downturn.

Sandra Davis has acted for many high profile and celebrity clients in the divorce courts.

Another London divorce lawyer, Mark Harper, explained the problem about how city bankers have had their bonuses cut, meaning they don’t have the money available to pay settlements that were awarded in more profitable times:

There is plenty of litigation in this area. Divorced bankers on, say a £150,000 salary, who had relied on million-pound bonuses, are certainly trying to have their spousal maintenance reduced. This is more likely to be where a deal has not yet been formalised by a court order.