Following a major overhaul of divorce financing in 2012 where legal aid was removed from most matrimonial proceedings including divorce, courts across England and Wales have seen a year-on-year growth of litigants in person.
This attempt to reduce costs inevitably leads to the process becoming far more emotive stressful and often way more protracted than it needs. Litigants in person trying to deal with the matter this way often fail to appreciate the complexities of negation, the relative strengths of their ex-partner, who maybe professionally represented, and the need to manage their own expectations of what is fair and reasonable.
In the current climate, the starting point for negotiations between parties is a fair 50 50 split of the marital assets at the time of separation. There are many factors which can shift the balance in one direction or another but very often the family law tribunal looking at the situation will start at the 50% clean split.
Going into any divorce financial negotiations with unrealistic expectations of what you perceive are “your needs going forward” or punishing the ex for what you believe was his bad behaviour will not have any great impact on the way the court begin their considerations of your needs and wants.
So where does that leave people who want to seek help and assistance with what is a major event in anyone’s life. Finances may have been turned off for the once dependant partner and they feel they have nowhere to turn.
Insurance companies have seen a potential gap in the market and see an opportunity to sell products to worried or desperate divorcing spouses. This might at first glance seem great and the fact the loan does not need to be repaid until the settlement is reached and concluded is amazing because only interest is paid during the currency of the proceedings.
The insurance policies giving this form of cover to one of the parties gives them security and peace of mind from the controlling ex or even the ex who has more financial security to pay his advisors.
But at what cost?
That is where problems can arise because the loan and interest does have to be repaid and a loan with interest costs you money.
Whilst insurance companies can see the benefit to clients of giving equality against a controlling and coercive ex as a major selling point the downside is always the insurance company is in the market to make profit from the arrangement.
So, whilst the loan might cover say £50k of legal expenses. This can be extended. And whilst not in every case, a lawyer who knows there is £50k of costs cover and possibly more if extended will take their clients instructions on a whole host of matters which could seem important but are almost always ancillary to what is in issue. Using up the full level of cover which you must eventually pay back.
So inadvertently although covered by a policy the client could end up paying more than what was needed to resolve the issues between the parties.
So, the growing trend of matrimonial divorce insurance does have a place in the market it is evolving all the time.
This is where the model of Fair Results Limited has come from.
Contact Peter, Chris, or Sarah to obtain information how are fixed fee costs work. Told to you at the start. You will know what your fees will be covering all your up-front costs. You pay nothing on account. You can be confident every phone or email to update you is not eating into your fee budget to resolve what at first impression seems an impossible position to get through without compromising your realistic aims.
By telling your ex at the start you have secured your fees makes them realise bullying you into a less favourable settlement by dragging out the process forcing you to burn money simply will not work. The settlement the court wants of fairness and equality will be achieved swiftly and you can get on with your life. The no nonsense approach of Fair Results driving the matter forward focussing on the important is the way forward in divorce funding. Yes, you will have to pay for our services and yes you know exactly what it will cost you and when but that is it – not keep paying money up front worrying when you will need to find more to try to achieve half of what is rightfully yours.
