Highland Chief Says Wife Should Get Nothing In Divorce

Oct 25 2013 | 10:33am ET

Highland Capital Management founder James Dondero's bitter two-year divorce battle is coming to a head.

Dondero is asking a jury to give his wife nothing at the Dallas divorce trial, in spite of the pre-nuptial agreement that calls for Rebecca Dondero to receive up to $5 million.

In spite of tens of millions in earnings in recent years, Dondero has claimed that he is technically insolvent under Texas law due to pending lawsuits against Highland. He also yesterday argued that Rebecca violated their pre-nup when she asked for more than the $5 million specified.

Rebecca Dondero's lawyers, in a pre-trial hearing, called for the pre-nup to be voided. That action effectively voided the deal, Dondero's lawyers say. A decision is expected today.

Dondero has accused his wife of six years of having an affair, first with his now-former business partner, Patrick Daugherty. After he learned that Daugherty was innocent of the allegation, he told him that he had 20,000 e-mails proving that his wife was sleeping with another, unidentified man.

"Dondero explained to Daugherty how evil his wife was and why he was determined to pay her nothing in the divorce," Daugherty said in court papers. He later testified on Rebecca Dondero's behalf, telling the court that Dondero had asked him to lie.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.