Find out how divorce loans or family law loans can help provide peace of mind during challenging times.
September 20, 2021
Going through a divorce is a heartbreaking experience for everyone involved. The emotional load weighs especially heavily on partners, their children and their extended families. Adding the cost of legal fees and other divorce-related expenses to the mix makes the prospect of separating almost unbearable.
Divorce loans, or family law loans, provide financial relief for individuals going through a dissolution of their marriage. There are several ways a divorce loan can provide much-needed support during the divorce process.
Get the funds you need quickly
Divorce lawyers typically don’t work on a contingency fee basis and require a monetary retainer and bill on a monthly basis. If you can’t pay, the lawyer won’t take your case. One of the biggest challenges for partners divorcing can be accessing money to pay legal fees and other expenses right away. It’s often not possible to liquidate assets or withdraw investment or savings funds quickly or at all.
A divorce loan or family law loan will provide you with funds now - essentially acting as an advance on your divorce settlement. You can use these funds (which you will eventually receive from assets such as the sale of your family home) to pay for legal fees, temporary housing or personal expenses.
Repay the loans once your divorce is settled
Another benefit of divorce loans is that you often aren’t required to repay the loan until your divorce is settled and you’ve received your funds - no matter how long it takes. You can also repay the entire loan on resolution or set up payment plans at any point before your divorce is finalized.
Additionally, these loans don’t require a credit check and won’t impact your personal credit score. Most divorce loans are also offered without proof of income.
Structure your loan to suit your needs
Whether you need a large sum of cash upfront, staged monthly payments or a line of credit, a divorce loan can be tailored to meet your needs. Staged loans can help cover recurring monthly costs through a fixed monthly payment, giving peace of mind to individuals as a regular source of funds.
Use the loans at your discretion
There is often no limit on loan amounts, and the approved amount you qualify for is generally based on an estimate of your eventual financial entitlement. Once you receive the loan, you are free to spend the money you will receive on whatever you like, whether it’s for legal fees, paying off existing financial commitments or personal expenses.
Re-apply for another loan
If you require additional funds after your initial divorce loan, there is usually an option to re-apply for another loan. This feature provides a sense of protection if you didn’t initially borrow enough money to see you through to the completion of your divorce proceedings.
Divorce cases can be emotionally draining, involved and expensive. Taking out a divorce loan provides you with financial peace of mind and allows you to negotiate the proceedings from a stronger position.
BridgePoint Financial is one of the only divorce and family loan lenders in Canada. With low rates and no hidden fees, we’re also proud to be Canada’s most trusted provider of family law financing. We offer a quick, easy and stress-free application process and can have funds to you in as little as 24 hours once your application is approved. Get in touch with a member of our team today to learn more about our divorce loan services.All Blog Posts