In many high-asset divorces, the process of ending a marriage and dividing marital property can seem to drag on indefinitely. Some Virginia spouses become despondent during the property division portion of their divorce, and begin to feel overwhelmed by the process in general. This can especially be true for spouses who face a partner who wishes to make the experience as unpleasant as possible, and who is willing to prolong the process in order to wear down the other party. Reaching an equitable division of assets can be difficult in these scenarios.
The matter becomes even further complicated when one spouse does not have access to marital assets and encounters a cash flow crunch while the divorce is still in progress. In such cases, the ability of that party to pursue their legal rights can become stunted. Litigation can be expensive, as can other divorce needs such as forensic accounting, financial planning and asset valuation services.
Fortunately, a relatively unknown type of lending can step in to fill a financial void during a Virginia divorce. There are companies that specialize in litigation loans, and many cater to spouses who are involved in a high-asset divorce. The borrowed funds can be used to cover legal fees, living expenses or other needs. The balance is paid upon the finalization of the divorce, or through the sale of marital assets.
While this is not a solution for every Virginia spouse, it can be an important resource for some. Borrowing to finance one's litigation needs can result in an improved equitable division of assets once the dust has settled, and is well worth the cost in many cases. As with any sizeable financial matter, having a wide range of choices improves the chances of success, and litigation lending is best viewed as one more potential resource to consider when the need arises.
Source: New York Post, "New York's divorce 'fixer' helps soon-to-be ex-wives fight for big settlements," Julia Marsh, July 8, 2013