Funding a family law case. How can I pay the legal fees?Ā
Funding a family law case can be challenging, especially if you are facing financial difficulties. However, there are several options you can explore to help cover these costs. These are some of the most popular options:
Litigation Loans / Third-Party Litigation Funding
In the UK family courts, a litigation loan is a way for people to get financial help to pay for the costs of a legal case, such as a divorce, a dispute concerning children, or seeking a financial settlement. These loans are often provided by companies that specialise in funding legal cases.
- What it is: Litigation loans (or third-party funding) involve a funder providing money to help fund your legal costs. This could be an option if you cannot afford the fees, but are confident in winning your case.
- Eligibility: There are generally no specific eligibility requirements, but the funding company will assess your case and determine whether to provide the funding. They usually only offer funding for cases they believe have a high chance of success and where there are assets which the loan can be secured against.
- How it works: The third-party funder lends you money to cover your legal fees, and if you win the case, you repay the loan plus interest. If you lose, you typically donāt need to repay the loan.
- Risks: This option can be expensive, with high-interest rates and fees. Be sure to understand the terms before agreeing.
Payment Plans
- What it is: Some solicitors offer payment plans that allow you to spread out the cost of their fees over time. This can make the financial burden more manageable. At Slee Blackwell we offer this option to our clients. We will always work with you to ensure your legal costs are manageable and fit your financial situation. Read about āFamily Law on Demandā, our cost-effective funding option in divorce & family law.
- Eligibility: You donāt need to meet specific criteria for this option, but you will need to discuss your financial situation with your solicitor to see if this arrangement is suitable.
- How to apply: Contact us directly for a chat.
Loans from Friends and Family
- What it is: If you’re struggling to pay your legal fees, you might consider asking friends or family for a loan.
- Eligibility: No formal eligibility requirements, but this depends on your personal relationships and whether others are willing and able to lend you money.
- How it works: You would generally agree to repay them either once your case is settled or after a certain period of time. Itās a good idea to put the terms in writing to avoid misunderstandings.
- Risks: Borrowing from friends or family can strain relationships, so itās important to be clear about repayment terms and expectations.
Personal Loans or Credit Cards
- What it is: You can take out a personal loan from a bank or lender, or use a credit card, to cover your legal costs.
- Eligibility: You need to meet the lenderās requirements, which may include having a good credit score or proof of income.
- How it works: You borrow money from a financial institution and repay it in instalments, typically with interest. Credit cards often have higher interest rates, so personal loans can be a better option if you have good credit.
- Risks: Borrowing money to cover legal costs can lead to debt, especially if youāre unable to repay it on time.
Court Fee Remission
- What it is: If you are going to court but canāt afford the court fees, you may be able to apply for a ‘court fee remission’. This means you might not have to pay the court fees at all or may only need to pay a reduced amount.
- Eligibility: To qualify, you need to show that youāre on a low income or receiving certain benefits (such as Universal Credit, Income Support, or Jobseekerās Allowance).
- How to apply: You can apply online through the HM Courts & Tribunals Service website.
- NOTE: This is in respect of court fees only. Not your lawyerās fees.Ā
Legal Aid
- What it is: Legal aid is government funding that helps pay for legal services for people who cannot afford them. It is available for certain types of family law cases, such as domestic abuse or child protection matters.
- Eligibility: To qualify for legal aid, you must meet certain financial criteria (based on income and savings) and your case must meet specific legal criteria (for example, proving there is a risk of harm to you or your children).
- How to apply: We do not offer legal aid at Slee Blackwell. If you wish to be assessed for legal aid then please refer to a law firm that provides this service.
Conclusion
Funding a family law case can be challenging, but as you can see, there are a number of options available, depending on your financial situation and the nature of your case. You can explore these options with our family law team. It’s important to carefully consider the costs and risks involved with each option, so speak to your lawyer about the best way to fund your case.