Loan to cover divorce costs

headress

Hello all, I have been separated for a few months and now want to proceed with a divorce. I have looked at a few law firms and want to go for a good one as my ex is emotionally abusive. I just can’t deal with him. I need about £20k, I am told. We own a house together and I work full time as a teacher. Has anyone got experience of applying for a loan for divorce fees? Do I go the personal loan route or get a specialist firm? My credit is okay so I may not be able to loan a lot. I used the MSE calculator but only got a Sainsbury’s loan at not a great rate. Any advice would be appreciated. TIA.

sourcrates

Hi,

I would advise caution here, taking out such a large loan for something that could potentially have costs escalating over and above what you may have budgeted for, it could become a money pit.

What is it you are looking to achive here, a simple divorce and a split of the house proceeds ? or are you looking at some kind of compensation ?

Do you have children ?

Because property is involved, its best to have a solicitor.

Is the 20k purely for legal costs ?

headress

Yes, I do have children. I ultimately just want to be free from him, especially financially. In order to no longer be linked and to pay off debts that he claims I have to pay, I need legal advice. I have spoken to a firm that says £20k is needed. Another firm (to be confirmed this week) quotes £2000. The second firm has come to my attention via the domestic abuse charity that is supporting me. The first firm was recommended by another teacher and is very highly rated. I just don’t want silly mistakes that will linger. The stress is overwhelming. I am hoping a good firm will be able to help him realise he needs to back off.

jonesMUFCforever

headress wrote: »

Yes, I do have children. I ultimately just want to be free from him, especially financially. In order to no longer be linked and to pay off debts that he claims I have to pay, I need legal advice. I have spoken to a firm that says £20k is needed. Another firm (to be confirmed this week) quotes £2000. The second firm has come to my attention via the domestic abuse charity that is supporting me. The first firm was recommended by another teacher and is very highly rated. I just don’t want silly mistakes that will linger. The stress is overwhelming. I am hoping a good firm will be able to help him realise he needs to back off.

Sorry to hear of your troubles.
Firstly is the mortgage in joint names?
If so then both of you will be jointly and severally liable for the amount owed - this means he can't say you pay half and I'll pay half - both of you will be liable until its repaid.

Secondly the other debts that he claims you must pay - can we ask what these are - are they secured in any way (on your property?) or unsecured - are they in your name his name or joint names. If they are in his name; legally he is liable to pay it all - it does not matter for what purpose that the money was used for. Any debts in your name obviously you will need to pay. Any joint see first paragraph above.

I too would be very wary of taking a large loan for this - do you qualify for legal aid at all?

[Deleted User]

£20K for a divorce seems extremely high?

jonesMUFCforever

venison wrote: »

£20K for a divorce seems extremely high?

Depends on the divorce - Barristers charge a grand (plus vat) a day!

headress

Thanks for your reply. The mortgage is in both our names. I have set up a direct debit to pay one mortgage and he can pay the second charge. The other debts are loans he took out, outstanding utility bills from when I was not working as well as when I was working. I was to pay all the childcare £803 out of my £1200 salary at the time but he did not pay some of his share of the bills and they are now debts. Yes, the debts should be shared but I simply cannot afford to pay them and the mortgage etc.

I am considering taking a loan from a credit union of £5000 - no guarantee I will be granted one.

headress

The firm actually quoted 20-40k. I am waiting to meet with another firm but leaning towards the expensive one because if their reputation.

Voyager2002

headress wrote: »

Thanks for your reply. The mortgage is in both our names. I have set up a direct debit to pay one mortgage and he can pay the second charge. The other debts are loans he took out, outstanding utility bills from when I was not working as well as when I was working. I was to pay all the childcare £803 out of my £1200 salary at the time but he did not pay some of his share of the bills and they are now debts. Yes, the debts should be shared but I simply cannot afford to pay them and the mortgage etc.

I am considering taking a loan from a credit union of £5000 - no guarantee I will be granted one.

Unless the utility bills (or rather the loans to pay them) are in your name, you have no liability to pay them.

Voyager2002

I suggest that you simply pay the expensive firm (Mishcon de Reya?) to send him a letter and see if that makes him back off a little.

Although we don't know how much equity you have in your house, it seems probable that legal costs could consume everything that you might gain from fighting (or more).

jonesMUFCforever

headress wrote: »

Thanks for your reply. The mortgage is in both our names. I have set up a direct debit to pay one mortgage and he can pay the second charge. The other debts are loans he took out, outstanding utility bills from when I was not working as well as when I was working. I was to pay all the childcare £803 out of my £1200 salary at the time but he did not pay some of his share of the bills and they are now debts. Yes, the debts should be shared but I simply cannot afford to pay them and the mortgage etc.

I am considering taking a loan from a credit union of £5000 - no guarantee I will be granted one.

You cannot rely on your first sentence.If the mortgage and secured loan are in joint names you are BOTH liable for the whole lot. For example you pay your mortgage everything is fine - however if he starts missing payments on the secured loan (if in joint names)they will chase you for it.
Much better either to get a clean financial break either you take over the whole mortgage debt or you think about selling up and moving elsewhere.
Other posts have advised you - if the utilities are in his name then he is liable to pay for them whether he lives there or not - if you have not done so get them put in your name from now on.