Can I Pay For My Divorce Afterwards? | Coles Miller

Getting Divorced But Struggling Financially?

Most people understand and accept that ending your marriage or dissolving your civil partnership will mean some financial changes in the future.

But how do you cope with the immediate cost of getting divorced? How do you pay for a solicitor and court fees if you have little or no money in savings?

How do you cover the cost of submitting all the paperwork involved? (Letter of Notification, Divorce Petition, Notice of Proceedings, Acknowledgement of Service and so on…)

Do You Have Cashflow Problems?

The costs associated with getting divorced can be an issue even for supposedly wealthy people.

You may be ‘house rich but cash poor’, regardless of whether or not you are the main breadwinner. You may not have much ready cash in your own name – no matter how large and luxurious your family home may be. 

But this should not make you feel powerless. It should not stop you from regaining control of your life, your finances and your future. It should not prevent you from seeing your children or stop you from receiving a fair financial settlement. 

How To Pay For Your Divorce After It Is Settled

Before getting divorced, you can apply for a short-term family litigation loan. These loans can be used to fund a wide range of legal proceedings, including:

How Much Do Divorce Loans Cost?

As with all financial products, it pays to shop around and do your research.

Even a quick comparison of a just few providers shows that – based on a 12-month loan – the representative APR can range from 15.20% to 27.30%.

There is also an administration fee. This is usually 1.0% but some providers charge 1.5%. Some providers charge a minimum administration fee of £500.

There would also be an independent legal advice fee. These fees range from £200-£300+VAT.

What If I Can’t Get Funding?

If you can’t afford a divorce solicitor, you may have to represent yourself in the family court as a litigant in person.

It can be very stressful – and very costly in the long term. You may get less access to your children; you may not be able to secure a fair financial settlement – especially if your former partner is represented by an experienced family law solicitor and you are not.

Sadly, more people are having to represent themselves in court because they cannot afford to instruct a solicitor. The family courts are already overstretched and this is making the situation even more difficult.

If you represent yourself in court, your divorce could take longer and be more stressful. And it may not end there. Without legal experience, you could leave a loophole that could allow your former partner to challenge the settlement in years to come.

Divorce loans are a solution to the problem. They enable more people to gain expert legal representation at a critical time. And they enable cases to proceed more quickly.

How Do I Apply For A Divorce Loan?

Ask your Coles Miller divorce solicitor about funding options. They can apply for the loan on your behalf. Some lenders will provide a decision in principle within 24 hours.

When your family litigation loan is approved, the lender will send you the documents for your electronic signature.

Once you have signed and returned the documents, the funding will be made available to you (usually within one working day). Your solicitor can then request drawdowns on your behalf. You will be asked to electronically approve these drawdowns.

When your proceedings have ended, the loan is repaid from the settlement. There are no monthly repayments. You can view your outstanding balance at any time by using the lender’s online portal.

Important Notes

You should choose a lender that is authorised and regulated by the Financial Conduct Authority.

Coles Miller Solicitors is a law firm, not a finance broker. For financial advice, we recommend that you contact your independent financial adviser.

Further Reading

Get Expert Legal Advice On Divorce And Dissolution

Ending your relationship? Contact Coles Miller Associate Senior Family Lawyer Lindsey Arnold for expert legal advice on divorce, civil partnership dissolution, separation, children matters, resolving finances and change of name.

This content was originally published here.

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