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Comment by jrockway | Hacker News Reader

Actually, litigation and selling illiquid assets destroy capital. The divorce angle of the article is just to add some outrage to an otherwise ordinary situation. Sell your business when nobody wants it, and you don't make much money. Sell your business when it's super-hot and awesome, you make a lot of money. It's called a "market".

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To be fair, divorce is the most likely reason the average person will have for winding up in expensive litigation and people are more likely to pursue it to the point of ruin because of the emotions involved.

Also bear in mind the fact that husbands can frequently be held accountable for their spouse's legal fees and you have a situation which creates a perverse incentive for litigation to continue.

My parents got divorced, and both had a bit of money and assets. They each hired a lawyer, split the assets, and that was that.

I think people are basing their decisions with respect to marriage and divorce on what they hear on TV (or social drama sites), rather than actual data. Oh well, HN readers are people too...

Also, the story this article is about would have ended the same way if he needed to sell the company to pay off some other arbitrary debt; margin call on a bad investment, the mortgage on his underwater home, anything. Divorce isn't relevant to the "life lesson". (Which is, "if you have to do something right now, you're not going to get a good price". I think I'll call it the "Best Buy" effect.)

I agree with you, it is when people want to hurt each other that they end up with nothing, spending it all to keep the other side in court until they are broke or give up.

Did you read the article? The reason he had to sell his portion of the business for a pittance was because the buyer knew he was desperate for cash which was caused by the divorce.

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