12 Mar Are divorce funding firms an option for California couples?
Divorce cases can be emotionally and psychologically traumatic for many estranged couples, and they can become a major financial calamity as well. Many estranged couples who were married for a long time and own most of their property jointly may find it increasingly difficult to negotiate an amicable divorce settlement.
Oftentimes an estranged spouse who does not have an independent source of income or assets finds it difficult to raise the cash needed to begin divorce proceedings. Some financial firms have begun offering divorcing spouses funding based on projected settlement amounts. This kind of funding opportunity can be critical for the spouse who does not work outside the home. If the income-earning spouse controlling the assets tries to hide assets by not disclosing them as required, the financial issues experienced by the other spouse often become dire.
Statistically, more women choose to stay at home to care for children and the house while male counterparts continue to work and control the family finances. Divorce proceedings often make these financial inequities a major point of contention. The matters relating to spousal support or alimony, property division or even child support may be determined solely by a judge who reviews the court documents submitted by lawyers.
Many law firms have now begun taking divorce cases with this kind of funding. Many professional lawyers will work on a case and take their legal fees after a divorce settlement is reached. Many firms charge interest which adds more expense to final cost of the divorce and reduces the final settlement amount for the spouse. However, this kind of funding may be the only way for many spouses to obtain the funding to divorce, especially those who need legal help due to the complexities of the divorce case.
Source: New York Times, “Divorce funding firms help spouses expecting big payouts,” Feb. 27, 2015