Tax
Nov. 11, 2024
Navigating litigation funding requires a thorough and careful tax strategy
Litigation finance is a legitimate way for lawyers and plaintiffs to receive nonrecourse cash, but it's important to consider taxes when striking a deal or later when filing tax returns.
Lawyers and plaintiffs often need cash, and litigation finance serves a legitimate role in providing it. Litigation funders offer nonrecourse money, so if the case (or cases) go bust, the lawyer and plaintiff are not required to repay the funder's advance. Lawyers may seek funding, their clients may seek it, or each may participate. Some deals focus on a single case and some involve a portfolio of cases.
Many people wonder abo...
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