Divorce Funding Has Arrived

Couples save for weddings, not divorces. As a result, many are cash-strapped and taken aback by the high costs of divorce. This places undue burden on attorneys, who must often choose between working on contingency or turning away clients. Fortunately, divorce attorneys can leverage divorce funding options, which allow receivables to be covered as they emerge.

As reported in Bloomberg, the average cost of a contested divorce ranges from $15-$30k. Of course some reach into the millions and last for many years. Many divorce attorneys end up bearing the brunt of these costs, or turning away clients who can’t afford the expense.

Litigation funding has permeated the Legal Services industry, and divorce law is no exception. Unlike traditional banks and finance companies which assess a prospective client’s eligibility based on assets, credit or income score, divorce funders base eligibility off of the expected settlement of the claim. As a result, funding becomes available for legal fees, expert costs and living expenses.

As with other consumer funding, divorce funding can enable clients to hire the best possible attorney – one whose billable hour might be outside the scope of the client’s normal budget. This optimizes the outcome in the client’s favor.

Divorce funding is a relatively new sector of the consumer legal funding space – having truly emerged in the last decade. And with the high cost of divorce, it’s likely here to stay.

Couples save for weddings, not divorces. As a result, many are cash-strapped and taken aback by the high costs of divorce. This places undue burden on attorneys, who must often choose between working on contingency or turning away clients. Fortunately, divorce attorneys can leverage divorce funding options, which allow receivables to be covered as they emerge.

As reported in Bloomberg, the average cost of a contested divorce ranges from $15-$30k. Of course some reach into the millions and last for many years. Many divorce attorneys end up bearing the brunt of these costs, or turning away clients who can’t afford the expense.

Litigation funding has permeated the Legal Services industry, and divorce law is no exception. Unlike traditional banks and finance companies which assess a prospective client’s eligibility based on assets, credit or income score, divorce funders base eligibility off of the expected settlement of the claim. As a result, funding becomes available for legal fees, expert costs and living expenses.

As with other consumer funding, divorce funding can enable clients to hire the best possible attorney – one whose billable hour might be outside the scope of the client’s normal budget. This optimizes the outcome in the client’s favor.

Divorce funding is a relatively new sector of the consumer legal funding space – having truly emerged in the last decade. And with the high cost of divorce, it’s likely here to stay.