Could a Divorce Funding Company Help You Get What is Owed?
Picture it: you and your spouse start a company, make it highly profitable and become millionaires when you sell it. Then your marriage goes south and you leave.
When the fog clears, you realize that although you lived in beautiful homes, drove luxury cars, wore expensive jewelry and vacationed in far-off destinations when you were married, now you have no access to your cars, homes, bank accounts or credit cards. What are you supposed to do?
Spouses in this situation who expect large divorce settlements are beginning to turn to divorce funding companies who front the money for the legal expenses and receive payment once a settlement is reached, according to a recent New York Times article.
These companies fund divorce expenses such as:
- Attorney’s Fees
- Forensic Accountants’ Fees
- Asset Investigators’ Fees
- Fraud Investigators’ Fees
- Reasonable Living Allowances
“Spouses with a great deal of assets can sometimes find themselves in a real bind when going through a divorce,” says Encinitas divorce lawyer John Griffith. “It’s more common than you might think to have a great deal of assets, but no cash. And cash is what it takes to fund a divorce and adequately pursue your rightful share of those assets.”
Companies such as Novitas U.S., Balance Point Divorce Funding and BBL Churchill, have emerged to help spouses who find themselves in this difficult situation. These companies claim to level the playing field for the spouse who is cash-strapped. Without financial assistance, the cash-strapped spouse might be persuaded to reach a settlement for less than they are entitled to.
“These divorce funding companies aren’t for your average divorce,” Griffith says. “These are for divorce cases where millions of dollars in assets are at stake.”
For example, Balance Point Funding works with spouses with combined marital assets of a minimum of $2 million, its website states. BBL Churchill offers loans starting at $50,000, which can be used for legal fees, expert costs and living expenses.
Some companies get paid only if you win your settlement. Others require repayment regardless. Repayment for the companies typically is based upon a percentage of your settlement.
If you’re cash-strapped and in a divorce in which a great deal of assets are involved, call us for a complimentary consultation. We can review your case and give you an idea of the costs that will be involved in representing you. This can help gauge what to seek in the form of a loan from a divorce financing company.