Dec 16, 2010

Funding Your (High-End) Divorce

If you're in the process of getting divorced and you're in need of cash to finance your case, your living expenses or both, you can now sell the rights to a portion of your future settlement for a fee--if that settlement is likely to be significant, that is. 

Companies like Balance Point Divorce Funding offer a divorcing spouse the ability to get a cash advance against a likely future settlement, after the company researches just how likely the settlement is, how much money there is, and even whether your spouse is hiding assets. From the company's web site, it looks like the marital assets must total more than $2 million in order to get funding, so it's certainly not an option open to everyone. And in many cases, the money doesn't go into your bank account for you to spend as you wish--instead, the funder pays your divorce service providers (lawyers, accountants, and the like) directly, with a cash allowance to you if you need living expenses. 

This isn't a new concept--companies have been funding other types of lawsuits for years using the same model, though the practice appears to be on the rise