Global meltdown presents practitioners with a great opportunity for ADR, says James Pirrie
Practitioners are caught in a conundrum. How can we drive towards a clean break by capitalising maintenance when we don’t know if clients will have a job in a year’s time, let alone the bonus that used to make up so substantial a part of the fmaily’s income?
Even if we pass this hurdle, then the Duxbury assumptions—even as updated—seem a crude structure for long-term prediction in the light of recent fluctuations.
For most people “separation” means disposing of assets to fund different lives going forward. However, in the current climate, disposal is difficult to achieve—family homes won’t sell, clients are reluctant to sell share-holdings that they insist are below their true value—holiday homes may be unsellable at any figure.
Even if clients are prepared to borrow to move things forward, the funding is unlikely to be provided in the sort of amounts needed.
Three-stage separation
What has happened in consequence is that a new chapter of separation has
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