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Divorce finance

by | Jul 15, 2017 | Divorce, Firm News

Most divorces cost an arm and a leg if there is any assets to divide. That is why modernly divorce need to handled in a different approach if people are going to be able to continue getting a divorce and to make it work.

As the divorce process begins, it’s not uncommon for the spouse with the financial power during the marriage to declare war against their former partner by cutting off credit cards, hiding assets and hiring the most litigious attorney. However, one major impediment to the one party impeding the others financial resources is something called an atros which once the petition is filed prevents either party from cutting the other party off from financial support.  Those who can’t bear the cost of the battle, agree to a sub-par settlement, all because he or she can’t afford the steadily mounting bills or can’t take the stress of protracted litigation with someone who can afford to litigate a case to death.

Divorces do not have be litigious or expensive if either party decides to mediate and avoid court expenses.  very few cases head to trial where all the experts come out to testify.  Most cases just settle outside of court so any anticipated expenses are only the ones that figh it out. Complex divorces can be shockingly expensive. Attorneys can cost many hundreds of dollars per hour and require substantial retainers up front, and then you have to add on fees for divorce financial advisors, forensic accountants, vocational and valuation experts, and other professionals whose expertise you may require.

A business niche has emerged to provide financing for those without the immediate means to fund the legal battle. This levels the playing field significantly against the well-known tactic of wealthy husbands or wives dragging on divorce proceedings and costs ad infinitum until their spouse runs out of money and are forced to concede. With independent financing, these individuals can pursue settlements they might not otherwise have been able to attain. However, one does have to remember whatever you finance can be considered in the divorce as an asset or debt and someone has to pay the debt off.

Often times, one spouse gives up a career to take care of the household and the children while fostering her spouse’s career. If a divorce occurs, she often has little or no money of her own.  However, the wife often can get attorney fees under the family code in California if she has no money and often the Courts will grant the Wife or husband their request.

In essence, firms that finance divorce use divorce as an investment opportunity, and yes, they expect it to pay off. Theoretically, if you have the funds to support an expert professional divorce team, you’ll reach a favorable settlement –one that’s much better than you would have received without the funding –and the financiers will end up with a good return on their money. Although nothing can eliminate all of the financial burdens of divorce, it may alleviate some of the stress of the financial aspects of divorce. I welcome this type of business into the mix.