The judge ruled sending Barclay to prison would not end the long legal battle

Sir Frederick Barclay was spared the threat of jail yesterday after a judge ruled he had no means of paying £245,000 to his ex-wife.

High Court judge Sir Jonathan Cohen said it was 'extraordinary' that one of Britain's most successful businessmen was now unable to make payments in a £100million divorce settlement.

But he ruled that sending the 88-year-old former publishing tycoon to prison would not end the long-running legal battle over his divorce from Lady Hiroko Barclay.

He appealed to the couple's nephews, who now control the family's fortune, to help their aunt and uncle with their finances.

Sir Frederick and his twin brother Sir David built a vast business empire which included the Ritz hotel, the Telegraph newspapers, the Spectator magazine, and retail and delivery firms.

Sir Frederick Barclay was spared the threat of jail yesterday after a judge ruled he had no means of paying £245,000 to his former wife

But they placed their wealth in a complex structure of family trusts, which are now largely controlled by three of Sir David's sons, Aidan, Alistair and Howard.

It has left Sir Frederick and his former wife entirely dependent on their adult daughter Amanda, who is also a beneficiary from the trusts.

The judge said Lady Barclay, who is also in her eighties, was in a 'dire' financial position, more than two years after Sir Frederick was ordered to pay her £100million.

He said: 'She is hanging on by a thread, not knowing from one month to the next whether she will be able to pay her bills.

'It is extraordinary to think that the former wife of one of the country's most successful businessmen is in this position, and that the Barclay family have allowed this to transpire.'

In the latest round of court hearings in the long-running dispute, Lady Barclay had asked the judge to jail her former husband for breaching court orders to pay her £245,0000.

Her lawyers had asked for the committal order to be suspended for a week to give Sir Frederick time to pay.

But the judge, who had already found Sir Frederick to be in contempt of court, ruled that a suspended committal order would not help the former billionaire to find money to pay his ex-wife.

Sir Jonathan said: 'I have no evidence that Sir Frederick has access to any material funds, despite the great wealth that Sir David and Sir Frederick built up.

'They placed it in structures that deprived them of ownership and control. It was all part of their financial planning in 2014.

'No doubt there were fiscal reasons for it. But, sadly their arrangements never contemplated firstly, divorce, and secondly, a family schism.'

A lender who had previously agreed to loan £10million to Sir Frederick had withdrawn the loan, the court was told.

The judge questioned why the tycoon had been unable to call upon his 'range of business contacts' for help.

He said he had heard evidence from two of Sir Frederick's nephews, Aidan and Howard, about their uncle's predicament.

Sir Frederick and his twin Sir David built a business empire which included the Ritz hotel and Telegraph newspapers but put their wealth in family trusts

Sir Jonathan said Aidan had 'seemed quite unconcerned', but that Howard had told him he considered it 'a priority'.

The judge said: 'Sir David's children have benefited not just from what their father created, but half of what their uncle created.

'The decisions that they have taken in managing the family businesses have had the effect of stopping the flow of funds to their uncle.'

He went on: 'It would strike me as very disappointing if they did not come up with a solution... it would be a sad reflection on the family if this priority was not satisfied.'

The judge warned that the case would come back to court if Lady Barclay was not paid her full £100million settlement, plus interest and legal fees.