Divorce can be very expensive and many people become very anxious about how to finance the process. Thankfully, there are various ways to fund your divorce and this article will look at a few of them.
Earnings and savings
If you have adequate savings or your income exceeds your expenditure, then earnings and savings are the simplest means by which to fund the costs of your divorce solicitor.
Kindness from friends and family
Financial help from those close to you may seem ideal because the loan is usually more flexible and doesn’t have high interest rates for example. However, when the court calculates your disposable assets, it may consider any outstanding debts to friends or family as money that does not need to be repaid urgently or not at all. This can put you in an awkward position, as the money owed to your loved ones may be included in the matrimonial pot, making it difficult for you to pay them back. It is therefore advisable to make a formal loan agreement between yourself and the family member/friend lending you money, which states an agreed interest rate and a repayment deadline. Even this may not convince the court that it’s a serious loan though.
Incur temporary liabilities
This might mean extending an overdraft or making some credit card applications for example. This option is only viable if you are completely confident of receiving a stake from the division of assets during your divorce. Excellent rates are available on some credit cards however these rates can rise sharply after a specified period.
Alternatively you may consider a personal loan.
Sell off personal assets or remortgage properties
We advise extreme caution in this area. If assets are registered in your name alone then it may be possible to sell them partly or entirely. It is absolutely essential that you seek legal advice from specialist divorce solicitors before doing this though because the court may consider any asset transactions as attempts to hide assets or remove them from the matrimonial pot. If they suspect you of this, you could be harshly reprimanded.
Take out a divorce litigation loan
Litigation loan lenders will firstly assess the prospects of your case and they will only agree to the loan if they are certain that you will win a sufficiently high sum to cover the loan repayments. If they are confident that this is the case, they will pay your solicitor directly whenever legal charges are due. It should be noted that fairly stringent conditions may be attached.
Seek maintenance payments from the other side
If you are so low on funds that your access to proper legal representation is jeopardised, you could apply to the court for a maintenance pending divorce suit. The court can order that your ex-partner pays maintenance payments to cover the costs of your legal fees until your divorce is finalised (the same applies to civil partnership dissolution). Such fees will be accounted for in your settlement.