Billionaire Tory party treasurer faces Britain's biggest divorce settlement after split from wife

The flamboyant City character and close personal friend of David Cameron is separating from his wife Lorraine after 25 years, it emerged yesterday.

Sources close to the couple, whose marriage was seen as one of the more secure in the world of high finance, say there are no plans for a divorce.

Separating: Tycoon Michael Spencer has split up with wife Lorraine after 25 years

But the surprise split raises the possibility of Britain's biggest ever marital financial settlement.

Ebullient Mr Spencer, 53, has a £1.15billion fortune and is ranked as the 62nd wealthiest person in Britain.

The chief executive of ICAP  -  the world's largest money broker  -  has helped raise millions of pounds for the Conservatives.

Only two months ago Mr Spencer and his 49-year-old wife, who have two sons and a daughter, were photographed together at the Tories' annual summer ball that he helped organise, where guests bid as much as £100,000 for prizes.

Confirming the split, a spokesman for ICAP said yesterday: 'They are separating, they are not divorcing.

'It's a difficult time for them. They are asking for everyone to respect their privacy.'

Born in Kuala Lumpur, the son of a UN diplomat, Mr Spencer was educated at the Benedictine boarding school Worth Abbey.

He got a taste for trading when he made a £300 profit trading in shares while studying physics at Corpus Christi, Oxford.

He founded ICAP in 1986, is said to be the City's richest self-made man and is regarded as one of the most colourful and wealthy individuals working within the Square Mile.

He has homes in West London's exclusive Holland Park, in New York and also a sprawling estate in Suffolk with a large wine cellar and an extensive art collection.

Splashing out £1million to have Robbie Williams perform for 300 guests at his 50th birthday bash at his holiday mansion in the south of France hardly dented his fortune.

Porsche-driving Mr Spencer's most recent pay package, revealed in June, showed he banked an eye-watering £9.1million in salary and bonuses last year, up from £6.8million.

ICAP earns commission by arranging trading between financial firms and has cashed in on recent hugely volatile shares and currency movements.

Before Christmas each year ICAP holds a charity day when the group's telephones are answered by celebrities, who in the past have included Prince William and England football stars John Terry and Frank Lampard.

The day's commissions are donated to charity and last year the event raised £42million.

Away from the City, Mr Spencer is a shareholder  -  but apparently not a big football fan  -  of Ipswich Town.

His hobbies are shooting and watching big sporting events.

The UK record for a divorce settlement is £48million, paid by insurance magnate John Charman to wife Beverley in 2006 after 29 years of marriage.

WPP marketing magnate Sir Martin Sorrell paid almost £30million to former wife Sandra after 33 years of marriage, whilst this month pop star Phil Collins agreed a £25million settlement with third wife Orianne Cevey, beating the £24.3million won by Heather Mills in her divorce from Paul McCartney.