According to The Sunday Times, one company now has loans out to more than 100 'high net worth' spouses - it charges about 20 per cent interest for up-front divorce financing. It is believed the market is growing rapidly, not least because of cuts to the legal aid budget and the credit crunch meaning banks are refusing to lend money.
The new trend was highlighted in the High Court last week with Michelle Young, 47, engaged in a huge multi-million pound battle with her husband Scot. Despite Mr Young declaring himself bankrupt, his wife believes the money has been hidden away.The former model told how a backer had agreed to finance her case against Mr Young, who is a fixer for Russian oligarchs and British billionaires.
are putting up money to women who want to fight their husbands in court
Steve Jones, a business development manager for Argent, a barristers' chambers, told of the growing trend: 'Rather than backing stocks and shares, hedge funds are backing litigation, because the returns are good for successful cases. They wouldn't be doing it unless they thought they could make money out of it.'
In 2010, there were 119,589 divorces in England and Wales which is a rise of nearly 5 per cent on the previous year, according to the Office for National Statistics. But it is the huge profits to be gained at the top end of the divorce market which is resulting in investors looking to cash in.
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