When people of a high net worth become involved in a litigated high asset divorce case, there is much to lose for each side. In addition, paying the costs of litigation in these cases can be difficult for those spouses who may not have access to the assets that are included in a marital estate. Therefore, many people in this position need to secure financing to pay litigation costs.
For many years, this financing was typically done by private banks through loans, but in recent years in the UK the ability to obtain a loan has diminished greatly with the recession. Therefore, a new technique is emerging for funding high asset divorce cases, and it is drawing the ire of the public. This new technique involves hedge fund managers and venture capitalists funding the costs of litigating high asset divorce cases in return for a percentage of the recovery.
Specifically, reports have emerged that hedge fund managers have financed high asset divorce cases in consideration for anywhere between 20 percent and 30 percent of any favorable judgment that’s rendered for that party. In some high asset divorce cases, this model has provided for enormous returns on the initial outlay, which is one of the many reasons that the public is unhappy about this revelation. The same types of people who used to gamble on mortgages failing now are working to earn returns on marriages failing.
San Diego High Asset Divorce Attorneys
People who are of a high net worth need to be extremely deliberate when it comes time to end their marriages for many reasons. Even one mistake can be extremely costly, and anyone who is in this position needs to be sure to obtain the counsel of an experienced professional before taking steps that can harm their positions.
If you are of a high net worth and you’re facing the possibility of ending your marriage, you need to seek the help of San Diego high asset divorce attorneys who have been helping husbands and fathers through these situations for many years. Contact the Men’s Legal Center today to schedule an initial consultation.