One of the first questions many people ask when considering divorce is: “How am I going to pay for legal advice?”.
Alongside concerns about your home, pensions, savings and financial security, the cost of legal representation can feel overwhelming.
The good news is that there are several funding options available. This article explores some of those options. You don’t necessarily need immediate access to cash to access expert legal advice, the right option will depend on your individual circumstances.
At TV Edwards we’ll discuss funding options with you at the outset so that you understand the likely costs involved and can make informed decisions from the beginning.
Commercial loans
Some clients choose to fund their legal fees through a commercial loan, such as a bank loan or credit facility. This can allow you to spread the cost of legal fees through affordable monthly repayments, helping you access legal advice without needing to pay the full cost upfront.
Litigation loans
Litigation loans are specifically designed to help people involved in legal proceedings who have wealth tied up in assets, but limited access to cash.
These specialist loans are typically repaid once your financial settlement has been concluded.
Before offering funding, lenders will usually assess:
- the likely value of your financial settlement;
- the strength of your case; and
- whether repayment is likely following the conclusion of proceedings
Interest is payable on these loans; independent financial advice should always be considered before committing to any loan.
Legal services payment orders (LSPO)
In some cases, the court can order one spouse to contribute towards the other spouse’s legal costs. A LSPO is generally considered a last resort where one party cannot reasonably fund their own representation.
When deciding whether to make an order, the court will consider factors including whether:
- you are unable to reasonably fund your own litigation
- you have been unable to obtain funding through a commercial or litigation loan; and
- your spouse has the financial eligibility to contribute towards your legal costs.
These applications are not granted automatically, and each case will depend on its own circumstances.
Which option is right for you?
Every client’s financial position is different, which means the most appropriate funding option will depend on your individual circumstances.
Concerns about legal costs should never prevent you from obtaining legal advice. Discussing funding options at the outset allows us to help you understand the likely costs involved, explore the options available, and find the most suitable approach for your situation.
