A City banker has halted his high profile court divorce battle after hearing news that his bonus would not be what he expected and so he could not afford protracted Appeal Court action.

Instead, an out-of-court settlement will be reached between Dominic Bokor-Ingram, aged 40, and his former spouse Catherine, aged 38, it has been reported.

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.

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.