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

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.