MY DIVORCE | MY WEALTH - PART 1: Funding A Divorce
Funding A Divorce Case
It is not uncommon, particularly in cases with high-net-worth individuals, for one party in the marriage to hold most of the wealth.
This can leave the financially weaker party in a place whereby they desperately need legal representation but cannot afford to fund it.
How to Fund Family Court Proceedings
There are lots of options available in those circumstances. For example, if Court proceedings have been issued, the financially weaker party could apply to the Court for a Legal Services Payment Order – which is an order that one party should pay the other party a sum of money for the purpose of funding their legal representation.
However, to make such an order the court must be satisfied that without the payment the applicant would not reasonably be able to obtain appropriate legal representation for the proceedings. So, the applicant would need to show that they are not reasonably able to secure a loan to pay for the services. In those circumstances, it is usual to show evidence that a loan has been refused by at least 2 commercial lenders.
The Financially Weaker Party
What if they are not in proceedings, and can’t afford to repay a loan to a commercial lender?
If they find themselves in such a position but expect to receive a significant lump sum at the conclusion of the matter, then you could consider approaching a lender who specialises in short-term loans loans for family law proceedings.
We know of different lenders who will be able to discuss the services they offer in more detail to fund divorce. It should be noted that the application will be subject to each lender’s specific criteria, and your own set of circumstances, and interest is usually applied, as with most loans. We recommend financial advice is sought from Financial Conduct Authority (FCA) authorised providers only, under FCA regulations.
Matthew Harcourt-Poole, Family Associate Solicitor
Lawson West Solicitors, Leicester
If you would like more information about the funding options available, then please contact us to speak to one our team of dedicated family solicitors. We're here to help. Contact Us
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