It’s always important to make the most of a bad situation. But Jason Reeve, founder of the Novitas Divorce Litigation fund, has taken it to the next level. By investing in loans to pay for divorce solicitors’ fees, his new fund aims to make money out of the failure of marriage.
Spouses often struggle to pay legal fees upfront as banks are often wary of lending to them despite potentially strong prospects of significant gains upon divorce settlement. Novitas aims to step in and fill this gap. The fund is currently looking to raise £5m to meet immediate demand for loans.
Investors can expect to pay a minimum investment of £20,000 into the fund, with Reeve promising a return of an impressive 8%. “We’ve become very cash-hungry,” Reeve told the Financial Times last week. “The demand for lending is amazing.”
Reeve has every reason to be optimistic. After almost a decade of decline, the divorce rate rose sharply by 5% in 2011. Some business commentators have attributed the increase to the recent financial crisis; couples who could not afford to split up during difficult times are now doing so as the UK economy stabilises. So, more divorce? Let the good times roll; there is nothing like capitalising on love lost.