Should You Consider Divorce Funding?
Involuntary isolation has been going on throughout the country as people are asked to shelter in place to slow the spread of the coronavirus. This means that families are spending pretty much all their free time together. While this is great for working parents who had spent little time with their children in the past, it can be quite annoying having to spend all your waking hours with your spouse.
For the most part, the quarantine situation has been a predictor of what retirement will look like. You may not be used to spending so much time together with your spouse. Can you really stand your husband or wife? On top of dealing with the stress of the coronavirus pandemic, do you really want to spend the rest of your life with this person?
You may even be considering divorce so you can ride out your isolation in peace. This is what has been happening in China as quarantine ends. However, as you may know, now is not the right time to undo your marriage. Courts are pretty much closed. Not only that, but money is an issue for many Americans.
Divorce isn’t cheap. While divorce is averaging around $12,900, it can be even more costly, depending on the factors involved. If you have lost your job or have seen reduced income in your household, what are your options?
You can get loans for cars, houses and even divorces. Divorce funding is now a thing. This option allows you to borrow money from a private lender so you can pay for attorney’s fees, appraisers, forensic accountants and other divorce-related costs. Because this form of funding is used as a loan against your final divorce settlement, eligibility is based on your expected settlement proceeds—not your income or credit score.
Pros and Cons of Divorce Funding
Like anything, there are good and bad points to consider. A benefit of divorce funding is that you have the money to consider a lawyer from the get-go. You don’t have to try to save money and then bring in a lawyer later. It can also serve as a financial safety net, allowing you to maintain your standard of living during the divorce.
There are some downsides as well. Divorce funding is expensive due to the high interest rates. It may be cheaper to find other options. Also, using this funding can affect your retirement plans if you are older. It may take a while to repay the loan if you end up with less money than you borrow.
Seek Legal Help
When it comes to divorce, money is often a factor. Divorces are not cheap, and in the current crisis, many couples are just sick of each other and want to end their marriage as quickly as possible. This is hard when there is little money available.
Divorce funding can be costly, but there are other options to consider. Discuss your situation with Fort Lauderdale divorce attorney Edward J. Jennings, P.A. We have more than three decades of experience dealing with divorce issues. Schedule a consultation by calling 954-764-4330 or filling out the online form.