December 6, 2010

Investment Firms Financing Divorce Cases

The New York Times ran a fascinating story on December 4, 2010 about investment firms financing legal fees in divorce cases.  The idea is that  parties that can’t afford legal fees get funding to be able to pursue more aggressive positions in their case vs. settling because they ran out of funds to fight.  The Times identified divorce funding as part of a larger trend in third parties investing in lawsuits.  The ability to pay legal fees during a divorce can affect both choice of counsel and what positions are taken, and divorce financing in high asset cases is an interesting development.  I would recommend anyone involved in a high asset dispute who is unable to pay fees as the case proceeds to have a thorough discussion with their lawyer about this option and and conduct a cost benefit analysis.  A link to the full article is here.