Banker halts divorce fight after cut to his bonus

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The last-minute deal between Dominic Bokor-Ingram, 40, and his former spouse Catherine, 38, was announced at the Court of Appeal after the banker's lawyer said his client had received "dispiriting news" about his bonus.

The result was that he could no longer "afford protracted litigation" and had decided to settle the terms of his expensive divorce outside court, rather than continue to run up legal bills.

The dispute was over how the separating couple's finances should be split.

The settlement is being seen by some legal observers as a sign the number of "big money" divorce deals could fall because of the economic crisis.

It was announced just as Mrs Bokor-Ingram's barrister, Martin Pointer QC, was preparing to argue in court that her ex-husband had failed to be completely candid with her over his career prospects - and negotiations that he had been having with headhunters about a new job - and that the financial aspects of their divorce should be reopened.

Mr Bokor-Ingram denied the accusation. But just as the case was due to start, he agreed his ex-wife should have the entirety of the former marital home near Guildford, where she lives with their two young children.

Under the original deal in July 2006, it was agreed Mrs Bokor-Ingram would get 76 per cent of the house, along with maintenance payments of £55,000 a year.