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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?

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