Wait for economy to improve to split marital assets

Divorcing couples are waiting to split their assets until the economy improves.

Lawyers have noticed an increase in the number of couples willing to wait until the economy improves before selling and dividing their assets.

Michael Robinson, a family and litigation lawyer at Turner Hopkins in Auckland, said clients were becoming more savvy with their assets in the light of the recession.

Couples were waiting until the housing market improved before selling up, he said. The same pattern was emerging with other assets such as art and shareholdings in public and private companies.

"Couples are saying: 'Rather than divide it now, we're better to keep it together and wait till the market improves."'

Lawyers are also advising couples to be careful when dividing cash and assets such as shares.

Overseas, a British businessman learned his lesson the hard way when he agreed to keep £26 million ($66m) in shares in his investment fund in return for his wife receiving £11m in cash.

When Brian Myerson's shares crashed by 90 per cent, he tried to get the courts to force ex-wife Ingrid to return the cash, but failed.

Wellington lawyer Rachael Dewar said: "I quite often try and point out to them [clients] that cash is king and that gives them the freedom to do what they want in the future."

Dewar tells her clients to get advice from an accountant or financial advisor and have assets valued before a divorce settlement is reached.

Wellington lawyer John Delany said the recent market downturn could cause problems for divorcing couples who did not take things like a falling share portfolio into account.