Litigation finance, a close relative of litigation funding, is gaining traction in family law. And it's seen as a safer bet than rolling the dice on a shareholder class action or a faulty product case.
There are about 50,000 divorces each year. Unlike personal injury cases — another reason “ordinary Australians” might seek a lawyer — family law firms cannot act for clients on a no-win, no-fee basis.
Investor interest in the sector was underscored in July, when JustFund — “Australia’s only dedicated lender for divorce and separation” — secured a $200 million debt facility from MA Financial Group, an ASX-listed alternative asset manager.
Co-founder Craig Carroll said JustFund had built its business on the ‘missing middle’ — everyday Australians, including professionals, parents and retirees, who are unable to access Legal Aid but also unable to fund family law legal fees.
