YOU DECIDED YOU WANT TO FILE …NOW WHAT?
HOW TO AFFORD TO DIVORCE YOUR SPOUSE
Divorce is expensive. While there is of course an emotional toll, there is also a heavy financial toll of which many clients are not prepared. This is a problem not only for clients, but also the attorneys and experts representing them. Even under the best circumstance divorce is difficult and costly.
WHAT ARE OPTIONS FOR FUNDING A DIVORCE:
In a perfect world both spouses have money set aside in case of a divorce, though in reality people save for weddings, not divorces. While it would be wonderful if both spouses got along and could agree on how assets should be divided, unfortunately this is not always the case. It is important for client to know about options they have to fund their divorce.
APPLICATION TO THE COURT
As an alterative to saving, the moneyed spouse could be ordered by the court to pay both sides’ legal fees and expert cost, but even getting through to motion practices can be expensive and time consuming. Not to mention, there are no guarantees the client will be awarded fees. Further, many judges defer to the end of the trial before awarding fees.
CREDIT CARDS
Putting the cost of a divorce on a credit card is another option, but for many the credit card limit would not meet the cost of the legal fees. Additionally, payments have to be made which may not be possible for some clients. Low credit scores may prevent a spouse from being eligible for a credit card after the divorce.
HOME MORTGAGE
Clients sometimes look to a bank to refinance the marital home to help pay for their divorce. A judge may order litigants to pull equity from a house in order to pay for interim support and legal fees until a divorce is final. Home equity loans can take many months to get approval, and the loss of a home can threaten custody battles. On the other hand, lenders may not approve clients during a divorce and causing a variety of roadblocks to a divorce. Sometimes, couples going through a divorce don’t know where to turn.
DIVORCE FUNDING
For many couples one spouse has easier access to their combined wealth. Often times the moneyed spouse will cut off access to funds from the non-moneyed spouse entirely, a court will freeze assets, or assets are not liquid. Divorce funding provides a cash advance of the client’s potential settlement for legal fees, expert cost and living expenses. It “levels the playing field,” enabling litigants to afford their attorney and expert fees, while maintaining their standard of living. Repayments are not made until a settlement is reached and cases can be funded in as little as two weeks. Divorce funding provides access to this essential capital.
Clients may not have the liquidity to engage in divorce proceedings and simultaneously afford living expenses, such as mortgage payments, school tuition and other personal costs during the proceedings. These expenses are sometimes used as leverage by the moneyed spouse, forcing clients to agree to an inequitable settlement. With the liquidity of divorce funding no one is forced into a settlement less than they deserve.
To find more about divorce funding and how it can help you or your client. check out www.newchaptercapital.com or call 212-404-7807.
