Divorce Loans Yes they are being unreasonable...

[Highlandheath]

If, like me, you have been sold a Litigation Loan or similar via your lawyers, relating to divorce, and were on a low income (your income, not your former husbands), if the loan was secured against your home as your only asset, and you subsequently lost your home or are at risk of losing it, there is a strong chance you have been mis-sold. These loans are now being discredited in the UK and the US. Complain to the Financial Ombudsman... The more of us who do, the more protection and regulation will be put in place.

What is the reason people thikn they do not understand the loan? Does this also apply to legal aid (which is also a loan often secured against a house) too?

Hi, Legal Aid is not something I know that much about, I'm afraid although there was DV sufficient to get a conviction I didn't qualify because I had a mortgage. You have a point, though, and people don't realise that Legal Aid is not "free money" or a "free loan" interest is charged and security is required, or at least some form of repayment plan. The Litigation Loan Sellers are a different thing, they sell these loans at 18% interest via family lawyers, as the only possible means of financing, no alternatives are offered, they are specifically targeting women who may have low income due to career breaks for motherhood, or part time employment, but who have a share in the family home - the sale of this is presented as a last resort, however. If the loans are not paid back on time - which given that divorce cases can rattle on for years, the average being 5, is pretty likely, you can't pay back until you have finished proceedings... they send in the lawyers, force a sale of the house at auction and bingo! On the street! Interestingly there are already alerts about these in the US, there is evidence that the presence of the litigation loan impacts on the direction of the case, so while it would be good practise for a divorce lawyer so secure for a mother in this position the family home during the children's minority, the litigation loan means the lawyer actually wants to have the house ordered for sale, to guarantee recouping the loan. Compare and contrast two, very similar, SW London Divorces, both with houses, and children, low earning, though employed mothers (main carers). One spent 50k, did not take out a litigation loan on a property worth at the time £1.5 million, mortgage free, secured the family home and a small amount of spousal maintenance. The other had a litigation loan on a property of slightly higher value, otherwise circumstances identical (wealthy high earning "self employed" husbands with trust interests overseas in both cases) the one with the litigation loan lost the house, had 540k legal fees (including 200k interest on the loan) and got a small amount of spousal maintenance.... I know of a number of cases like this, and many women feel so stupid they are scared to talk about it.....

Yanbu to raise awareness, I didn’t know that was a thing.

I took out a credit card with 3 years interest free to pay the bills for my divorce; and am still working over time to over pay it. Was worth it to stand up to a big bully but financially quite painful.

I was “lucky” to get legal aid for the initial stages due to low income and DV. It is a scandal how few people can access it though.