Divorce is a stressful process and can be hard on the pocket. Nowadays, legal experts confirm that the financial costs involved in filing a divorce have gone up the reason why couples who plan to end their marriage for good should have enough funds.
The legal aspect of the process alone can already cost you a fortune. Divorce lawyers today charge hundreds of dollars on an hourly basis and this is exclusive of the retainers fee they require up front. The other costs couples have to take into consideration are the fees they need to pay financial advisors, forensic accountants as well as vocational and valuation professionals.
“In most circumstances, it’s the husband or the main income earners of the family who can afford to file a divorce,” said Pasadena Divorce Lawyer Ted Khalaf. “The wives then, notably those who are financially dependent, are at a disadvantage.”
What now if you don’t have enough savings to proceed with your divorce? Where can you get help?
Fortunately, there are now companies specializing in divorce funding. They help women with no budget to fund their legal case and settlements. Some of these firms are the Balance Point Divorce Funding which is being supported by Asta Funding, Inc. and Novitas US which used to be the National Divorce Capital, Inc.
Many of these companies funding divorcing spouses are still new having been in the business for less than a decade. They get clients from well known divorce lawyers who are helping their own clients find funding resources for their expenses.
Novitas is based in Britain but has set up a branch in the U.S. The company helps spouses without marital funds and then collects its fee after settlement.
What the company does is make non-recourse advances at a rate of one percent to 1.5 percent per month or equivalent to 12 to 18 percent in a year. This advance can no longer be recovered by the lender in the event that there’s no payout during settlement.
In case of a payout after settlement, Novitas is repaid based on an agreed schedule.
BBL Churchill Divorce Finance
The BBL Churchill Divorce Finance, on the other hand, has a different rule. They provide loans to spouses fighting a divorce battle but if no settlement is reached, the borrower is still required to pay back the money with interest.
This company also assesses a borrower’s eligibility based on the expected payout during settlement. The loan must also be repaid in full when settlement is reached hence, no repayments are needed on the loan before that period.
BBL Churchill provides loans starting at a minimum of $50,000. The money can be used for legal fees, advisors or experts’ fees and other living expenses.
Balance Point Divorce Funding
Balance Point offers funding for spouses but for only those with combined assets worth at least $2 million. The loan can be used to pay for various fees required during the divorce process.
Unlike other similar companies, Balance Point does not impose a fixed percentage of the expected payout. Rather, it provides funds based on an assessment of what is needed to prevail in a spouse’s claims.