A Dallas hedge-fund mogul trying to sidestep a $5m pre-nup pact payout to his ex-wife will find out as soon as this week if his claims of insolvency will work.
The New York Post reports that James Dondero, co-founder and president of the $18bn asset manager Highland Capital Management, claimed in court that despite allegedly earning more than $36m in 2010, several pending lawsuits against the firm have rendered him insolvent under the court’s accounting rules.
The bitter, two-year divorce battle - which has seen his one-time partner testify for the 33-year-old wife, Rebecca Dondero - went to trial Wednesday.
The battle has captured the attention of hedge-fund titans from coast to coast, not only because Dondero refused to settle short of a trial and risk embarrassing testimony in court - but because a casual conversation between him and Patrick Daugherty, the former partner, resulted in Dondero getting slammed at a hearing last year.
Daugherty testified for the wife that Dondero told him he planned to try and hide assets just to stiff Rebecca on the pre-nup.
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