Category : How to get a Divorce

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Get Divorced On Other People’s Money

money for divorceThe average cost of a divorce in America is estimated to cost between $15,000 and $30,000; the scary part of this estimate is that the figures represent the average cost of a divorce and not the cost range of a divorce. For people long-embroiled in a divorce battle, this figure may seem like but a pleasant memory in comparison to the figure they are currently facing.

It is no secret that divorces can be the nastiest experiences in the world, especially when robust finances are involved. But what about those spouses whose separate finances are less than robust? What chance do they stand in getting a fair shake in this expensive legal system? These are the very questions that birthed a new business sector called divorce financing.

People Will Finance Your Divorce?

In case you were wondering if you had missed something in the business world, divorce financing is not a business with a long history. In fact, divorce financing has only been around since 2009. Currently, there are two major players who are solely in the divorce financing market, BBL Churchill and Balance Point, and they each take a unique approach to divorce financing.

The Church of Divorce

BBL Churchill basically loans clients the money needed to cover all the legal expenses incurred during their divorce, and any necessary living expenses. After receiving a money retainer, BBL Churchill will loan divorcees anywhere from $2,000 to $1,000,000 if the divorcee meets the requirements.

To take out a loan with BBL Churchill, a divorcee must be represented by a qualified divorce attorney, have a joint net asset pool of $400,000 or more, and must have been married for at least 12 months to the divorcing spouse.

The BBL Churchill loans have a fixed interest rate for the term of the loan, and do not have to be paid back in monthly increments. The loan is repaid in its entirety by the divorce settlement.

Finding Balance in Divorce

Balance Point Divorce Funding invests in clients’ divorces, rather than loaning money to clients. The money from Balance Point is used for hiring attorneys, forensic accountants, and asset investigators, and for the client’s necessary living expenses. Balance Point usually invests about $200,000 in their client’s divorce.

To be funded by Balance Point, clients must have combined marital assets of $2 million or more, must not have marital assets affected by pre- or post-nuptial agreements, and be in need of $200,000 or more in funding.

If Balance Point decides to invest in a client, the invested money will be returned in full and more upon reaching an agreeable divorce settlement.

With the cost of living inching up each year, it’s no wonder divorce financing and other legal financing became a thriving new market. Just two years ago, legal financing companies were estimated to have $1 billion invested in clients’ legal actions. Divorce financing may just be the future of divorce in America; we only hope other divorce financing companies that crop up operate ethically.

If you were in a divorce with a spouse who out-earned you, and you needed money to get a fair settlement, would you hire a divorce financier?

Collaborative Divorce: Stuck Between Contested and Uncontested

78630844The availability of the collaborative divorce process is gaining steam as more states sign it into law. A less adversarial form of divorce, collaborative divorce still allows the couple to make all separation agreements without sitting, or heatedly standing, in a courtroom.

Although uncontested divorce is the most ideal case in which spouses can settle things peacefully on their own, a collaborative agreement involving two lawyers keeps the situation out of any court drama that often ensues during contested cases. Thankfully, a new collaborative divorce law was just passed in Washington, solidly making available a more peaceful divorce experience for all involved.

Terminology Lesson

Just so we’re all on the same page, here are definitions of most kinds of divorce:

Uncontested Divorce: A divorce in which the couple agrees on all allocations of marital property, child custody, child support, and/or alimony. Uncontested divorce essentially eliminats the need for lawyers or a judge in court. An uncontested divorce usually gives a no-fault grounds for divorce.

Contested Divorce: The opposite of uncontested, contested divorce means the couple cannot make a settlement agreement on their own due to disputes. Lawyers and a judge are needed to make the settlement for them. The process is longer and more expensive.

Mediated Divorce: A divorce where the couple hires a mediator, who is usually a divorce attorney trained in mediation, to help them settle allocations agreeably.

Collaborative Divorce: Similar to mediated divorce, except the couple hires two lawyers, one for each spouse, to help them come to an agreement and draft the divorce settlement.

Good News for Washington

Despite its effectiveness, the collaborative divorce option is only enacted in a few U.S. states. One state that just made it available and signed it into law is Washington, to the joy of many supporters.

Called the Uniform Collaborative Law Act, it enables couples to utilize mental health professionals and child specialists as well as lawyers to make the out-of-court option run even smoother. Child therapist Kristin Little remarks, “You’re helping people to be good parents through the divorce, so you’re actually preventing a lot of the damage that can occur during the divorce.”

Indeed, going through divorce is especially hard on children, who tend to be caught in the eye of the storm. “I have been doing family law litigation 25 years and court is no place for families,” says Washington based lawyer, Cynthia First. When disputes need to be resolved themselves, leaving them out of the court’s hands means less hassle and more peace.

Amicable Splitting

The best way to settle any conflict or disagreement is through reasonable compromise and speedy resolution. That kind of attitude and problem-solving leads to feelings of goodwill for the ex-spouse and life after divorce. Even though spouses often have serious disagreements over what will happen to their life’s possessions during divorce, they can find a way to temper them independently through options like collaborative divorce. The collaborative divorce process frees up more time and resources for the divorcee to focus on other things, like moving on.