Cut off and cash strapped in a divorce proceeding? Has your ‘soon to be’ ex-spouse cut you off, making it next to impossible to cover your legal fees or other obligations? Divorce loans to the rescue. A recently founded, New York based company operating in several states offers loans to spouses undergoing a divorce that are designed to cover their legal fees and living expenses until the tide turns.
Many of their clients are women, who are ‘out on a limb’ financially until the divorce is finalized. Taking a divorce loan gives clients access to money quickly so they avoid falling behind while trying to work through a divorce. The founder of the company claims he spends much of his time on the phone with distraught women, cut off financially by their husbands during divorce proceeedings – he champions their cause, believing them to be a part of an ‘unprotected class’.
The interest loans are not cheap – they are designed for someone with a net worth of at least 600K to be worthwhile. The company’s minimum loan is $50,000, and its average loan is around $250,000. Although divorce funding is a relatively new area of financing, it appears to be gaining steam.
Source: Boston Business Journal, “Cheating Millionaire Husband Cut You Off During Divorce? There’s a Loan for That.”, by Greg Ryan, July 8, 2015.
