When a Florida marriage is falling apart, spouses often base their decision to file for divorce on a range of financial factors. Even wealthy spouses have to consider the financial aspects of a divorce, especially in cases in which one spouse has little control over the family finances. It is not uncommon for an angry spouse to limit the ability of the other partner to access marital funds, which can cause problems when attempting to end an unhappy marriage.
Many spouses who cannot afford to pay for legal services simply settle for less than they are entitled to under Florida law. This can result in a husband or wife walking away from a marriage with an unfair property division outcome than they would have gained had they been able to litigate the matter properly. Child support and alimony can also be doled out in an unjust manner, leaving one spouse at a serious financial disadvantage in the years to follow.
One little-known option available to spouses who are asset-rich but cash-poor is litigation lending. These are loans granted for the sole purpose of covering living expenses and legal costs while a divorce is underway. The short term loans are repaid once the divorce is final, using money gained during the property division portion of the divorce process.
While many Florida spouses shy away from the idea of taking on additional debt to pay for their divorce, the option is worth a closer look. In many cases, litigating for one’s rights can yield far greater returns than the cost of taking out a short term loan litigation loan. In the long run, spouses who would otherwise be unable to effectively fight for their rights in court could greatly benefit from this type of financial service.
Source: ABC News, “‘Fairy Godmother’ Levels Financial Playing Field in Divorces,” Linsey Davis, July 9, 2013