Can I finance my divorce?
The cost of divorce can be astronomical, particularly in a highly contested, high conflict situation. Between attorneys for all the parties, financial professionals, forensic accounts and forensic psychologists (to name a few), before you know it, that pot you were hoping to divide has dwindled significantly.
In a perfect world, both parties would agree, an attorney would draft an agreement, file it with the courts and everyone would go their own way. The reality is far more disconcerting. Often, the monied spouse refuses to give the non-monied spouse any interim cash, not even to hire an attorney. In some cases, one party is getting ready to divorce and doesn’t want the other to know. Whatever your situation, you’re going to need to pay for your divorce.
When funding seems impossible
I don’t advocate going into debt for any reason, however, sometimes it’s the only choice. Be very cognizant of interest and fees which are inevitably going to be very high. There are several different ways to finance your divorce:
1. Credit cards. Attorneys take credit cards.
2. Credit card loans. Your credit card company likely offers some loan options.
3. Divorce financing. There are a few companies that have cropped up that specialize in financing divorces. New Chapter Capital is one example. They will help you based on what your anticipated settlement might be.
4. Borrow on non-traditional assets. Did you know you can borrow against artwork or classic cars? Borro.com provides financing against luxury assets.
5. Sell your engagement ring. Worthy.com will put your ring up for auction eliminating the middle person.
6. Borrow from family or friends with a Promissory note. If you have this option available, be sure to get a Promissory note lest your spouse decide you have an alternate source of income to be imputed to you!
Going into to debt is never a great option, however, if it’s your only choice, make sure you do your best to keep your payments low, pay your bills on time and pay off your loan AS SOON as you can.