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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.shutterstock_82765654

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.

 

 

 

Meet Your Dedicated San Diego Family Attorneys
Family Attorney John N. Griffith, CFLS
Family Attorney John N. Griffith, CFLS

Family Attorney, John N. Griffith, CFLS

John Griffith has practiced exclusively in the area of family law since 2009. John is a Certified Family Law Specialist certified as an expert in the area of family law by the California Board of Legal Specialization.

858-345-1720
john@gylfamilylaw.com

Family Attorney, Catie E. Young, ESQ.
Family Attorney, Catie E. Young, ESQ.

Family Attorney, Catie E. Young, ESQ.

San Diego family lawyer Catie Young has a wide range of litigation experience. She has worked in civil litigation. She has successfully represented clients in many areas of family law including child support, child custody, divorce and domestic violence. She has a unique approach to each child custody case, so clients of Griffith, Young & Lass tend to gravitate toward her in these cases.

858-345-1720
catie@gylfamilylaw.com

Family Attorney Amy J. Lass, Esq.
Family Attorney Amy J. Lass, Esq.

Family Attorney, Amy J. Lass, Esq.

Amy Lass was born in New York and raised in San Diego, California. Amy graduated from Cal Poly, San Luis Obispo in 2003 with a B.S. in Economics with a concentration in Enterprise Accounting and went on to earn her law degree from Thomas Jefferson School of Law and graduated cum laude in 2006. Amy takes a practical and cost considerate approach to the process while striving to balance the emotional needs and objectives of her clients.

858-345-1720
amy@gylfamilylaw.com

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