Fewer couples are separating in the High Court due to the credit crunch, according to leading family law barrister Gerry Durcan SC.
At a speech to the annual Round Hall family law conference at the weekend that people are putting off the moment when they might separate while others were opting for the Circuit Court, which handles cases involving fewer assets.
“The matrimonial courts are nothing more than a reflection of what is going on in society,” he told The Irish Times after the conference. “Nothing is predictable at the moment. There is a mini-Nama in each case. People have to find a situation where they use the assets that do exist to trade out of the situation where they are.”
Banks, he said, were now much more reluctant to release money to assist in funding settlements.
“Traditionally the banks were willing to co-operate with the release of property. Now they are extremely reluctant to release anything. Should banks be joined in the proceedings? There is no consensus, because sometimes the banks would have first call on any assets.
“One solution for people is not to bring on cases, because there is nothing to fight about, or a lot less to fight about. Increasingly you find the courts are having to deal with the consequences of debt, rather than with assets.
“If people do separate, they are trying to sell as little as possible, because there’s no market. It is difficult to divide up properties, because the banks won’t release securities. The courts are now reluctant to make lump sum orders as it is difficult to value anything. Sometimes they are ordering a percentage of whatever the property gets. You have to distinguish between the ‘can’t pays’ and the ‘won’t pays’. The courts need to facilitate the ‘can’t pays’, but not let the ‘won’t pay’ cases off the hook.”