Divorce Loans

At Family Law Consultants we appreciate that the cost of a divorce can be expensive especially at a time when money is usually tight.

It can be particularly hard if you’re not the main earner and have joint assets that you can’t access to pay legal fees. You don’t want to be at a disadvantage in your legal representation just because you don’t have those funds. Thankfully there are solutions. Litigation funding is a loan provided by specialist lenders to fund legal proceedings based on the expected settlement. It can provide access to justice, and at Family Law Consultants we are on the panel of one of the leading litigation loan providers, Novitas Loans.

Please note that we are not recommending Novitas Loans (there are other providers available on the market) nor are we recommending that you take out a litigation loan. You must carry out your own research and decide what is best for you.

Alternative funding options are available, such as asking the other side to pay the legal costs voluntarily, however very often they refuse. In such circumstances, you can apply for a court order demanding the other side pay the fees, but before you go down this route you will need to apply for litigation funding to show the court that you’ve explored all options.

In any event there are advantages to litigation funding. Applying for a court order to get the other side to fund your case is costly and there is no guarantee that you will win. With litigation funding, a trustworthy third party provides you with added protection and it offers a helpful method of payment which you have control over. The loan is repayable in full from the settlement funds at the end of the case.

What is the application process?

Your lawyer at Family Law Consultants will make an application on your behalf to Novitas setting out the details of your case. The Underwriters may request additional information to enable them to come to a decision. Novitas will take a Deed of Assignment over the proceeds of settlement of your case. They will not seek to place a legal charge on any property, but it is preferable if a property, usually the former matrimonial home, is likely to be sold. This will ensure that you will be in a position to repay the loan in full at the end of your case.

If your application is approved, you will receive loan documentation from Novitas, and you must seek independent legal advice to ensure you understand the loan requirements. If you decide to proceed, there is a mandatory minimum 14 day 'cooling off' period, during which you can change your mind. Following this, your lawyer can make the first drawdown from the loan facility, which you will approve. Any subsequent drawdowns can be requested by your lawyer which you will also approve and have full control over. Interest is only payable on the money drawn, and you do not have to service the loan for the duration. Once your litigation is concluded, the loan and interest will be repaid from your settlement.

Is the loan secure?

Novitas is part of the Close Brothers Group PLC, so you can count on the strength and backing of one of the UK's leading merchant banks and rest assured that the money is coming from a secure source.

Family Law Consultants has worked with Novitas for many years and consequently we feel that we are experienced in securing litigation funding for our clients with one of the most reliable funders in the market. This is a real benefit to you as it allows you to access legal representation and achieve the best possible settlement without the ongoing worry of having to find the funds to pay your legal fees.

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