Wednesday, April 19, 2017

Ways To Obtain Divorce Financing

By Barbara Brown


It generally does not cost a lot of money to obtain a marriage license from the county and state. You may be able to exchange marriage vows for very little cash out of pocket. As inexpensive as it is to get married, it tends to be costlier when you want to end your union. Hiring a lawyer or going to court could cost thousands of dollars. Even if your case is simple and straightforward, you still may need to know your options for divorce financing.

Your first option could be to put everything on a credit card. If you have a card with enough line of credit available, you could ask the lawyer to charge his or her costs to your account. You could then make payments bit by bit until the expenses are paid in full. Alternatively, if you are asking the court for your legal fees to be covered by your soon-to-be ex-spouse, you can include your card charges in that settlement request.

If your cards are maxed out or you do not want to run them up for your case, you might go to the bank and ask for a personal loan. The loan officer will look at your credit rating, however, and possibly turn you down if your rating is too low. That result would force you to consider other options.

Instead of a personal loan, you might try for an equity loan against your house. This lien does not require the high score. It could put your house at risk of foreclosure if you default on it, however.

Your home's equity also might be at your disposal. Many banks will not look so much at credit ratings as they do the equity in your house. They know they can always move to foreclose if you default on the loan. Still, a home equity line may be a valid way to raise the cash and put it toward your marital dissolution. This type of loan generally gets approved fast so you can get it in a relatively short amount of time.

When you do not have these strategies available to you, you might ask the law firm you wish to retain for a payment plan. Some attorneys will set up payment plans that let you make monthly payments toward your expenses. Others have you sign a contract allowing them to seize your tax refund to settle your account.

When the IRS issues your refund, it will mail it to your attorney instead direct depositing it in your bank account. Your lawyer would then give you the remainder of the refund after your expenses are settled with the firm. This strategy might work best for low-income clients or people who cannot save up or get the funds they need to file.

A marriage license may be cheap; however, a divorce can be costly and difficult to pay for upfront. Your best chances of finding financing may involve considering these tips. They could give you the money you need now and let you proceed with the case to end your marriage.




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