The newest cynical investment scheme: The Divorce fund

Could this be the most cynical investment idea ever hatched? Novitas has launched a Divorce Litigation fund which aims to "cover the rising costs of divorce" in an environment where traditional bank lending is still hard to come by.

The idea is that the fund offers a valuable alternative lending source for people struggling to find the cash for legal fees and other costs associated with divorce. For those with a spare £20,000 to meet the minimum investment level, the fund promises an annual return of 8% to investors.  Novitas says the number of divorces in the UK is on the rise, with 120,000 in 2010, a 5% increase on the previous year. The total size of the divorce lending market in the UK is an estimated £100m a year, while the cost of legal fees in London especially are huge – Novitas estimates £40,000 per side co...