Asset Tracing

The investigative and legal process of locating, identifying, and establishing ownership of assets held by a judgment debtor or defendant, often across multiple entities, jurisdictions, and financial systems. Asset tracing in complex commercial disputes typically involves forensic accounting, corporate registry research, real estate records searches, financial intelligence tools, and in some cases formal disclosure proceedings before courts with jurisdiction over the debtor. For litigation funders, asset tracing capability — either through the claimant's counsel or through specialist investigation firms — is a critical due diligence component, particularly in cases involving foreign parties or defendants who have allegedly moved assets in anticipation of litigation. The cost of asset tracing is frequently included in funded budgets in post-judgment enforcement matters.

Funders commission or require asset tracing before committing significant capital to a case involving a foreign, closely held, or historically evasive defendant, because collectability diligence at intake is far cheaper than discovering post-judgment that the defendant has no reachable assets. The cost of asset tracing is typically built into the funded budget for post-judgment enforcement matters, reflecting the funder's expectation that collection, not just adjudication, will require active investigative work.