Funding the Path to a Fair Settlement in High-Value Divorce Proceedings

A client came to us through a partner law firm needing divorce funding for a final hearing in financial remedy proceedings. The hearing was listed for ten days.

A significant disparity in assets between the parties left our client unable to meet the costs of the divorce proceeding to a final hearing without external support.

Challenge

The clients former partner had assets of approximately £65 million, much of it sitting in trust structures. Despite the scale of the matrimonial wealth involved, our client personally had very little in their own name, with no property and limited savings.

They had previously been declined for FDR funding ahead of an earlier stage in the proceedings. But once a ten-day final hearing was listed, the legal costs required to continue the case increased significantly and they approached us for support.

Solution

We provided a Family Law Legal Fee Loan covering £92,200 in outstanding fees and approximately £570,000 in projected costs through to the final hearing, giving them a total facility of around £660,000.

Security came from the former matrimonial home, a London property valued at £1.89 million, which was to transfer into our client’s sole name under the partner’s open offer. Our client’s limited assets did not impact their credibility to receive funding whatsoever. Along with the security of the matrimonial home, a life insurance policy was put in place for the duration of the loan term as part of a responsible lending structure.

Outcome

The former partner’s open offer stood at approximately £12 million, while discussions during the proceedings indicated a likely outcome closer to £15 million. Based on the expected settlement, the loan remained repayable across every scenario considered. With funding in place, the client was able to continue towards the final hearing with the support of their legal team, rather than feeling pressured to accept an offer they believed fell significantly short of a fair outcome.

This case reflects our commitment to ensuring that access to justice in high-value matrimonial proceedings is not determined by who controls the assets during litigation.

We work closely with leading family law firms across the UK to provide lending for clients in financial remedy proceedings, as well as Inheritance Tax, Inheritance Advance and other use cases.

Get in contact with our team today to discuss your requirements.

Client of Band 1 Solicitor Firm (Chambers & Partners)