BridgePoint's innovative and flexible financing solution provides crucial assistance when no other option exists
This article was produced in partnership with BridgePoint Finanical
Clients going through the separation and divorce process face many and varied challenges unique to their own situation — but BridgePoint Financial offers an innovative and flexible solution that can make a substantial difference across several circumstances.
What does BridgePoint bring to the table?
Providers of specialized funding since 2005, BridgePoint meets the unique needs of lawyers and their clients who are underserved by traditional lenders. Forging over 1500 law firm relationships, assisting in more than 50,000 cases with upwards of $450,000,000 funded, and offering 150 years of combined legal experience, BridgePoint is an established leader in the legal finance space.
Family Law Financing acts as an advance— structured for the client’s specific needs, whether it be a lump sum, line of credit, or a staged monthly amount — on a client’s entitlement, allowing them to access funds they will eventually receive but need now. Faced with legal fees, disbursement costs, and associated personal and living expenses, the access to funds that will ensure timely and fair resolution of the separation and divorce is essential.
BridgePoint’s solution, which does not require repayment or monthly servicing costs until the parties reach a resolution and funds are released, has proven time and time again to be a true life changer for clients.
Scenario One — Income inequality a significant challenge
One of the separating parties was unable to move out of her matrimonial home or retain a lawyer to commence the process despite domestic abuse being present as she was on disability and didn’t have access to enough money for a retainer. However, the couple had significant assets including two jointly owned properties and a few investment accounts.
Securing a lump sum loan of $10,000 from BridgePoint meant the party was able to move into her own apartment, retain a lawyer, and begin the separation and disclosure process. The lawyer assisted with the division of assets and the commencement of spousal support, enabling the ex-spouse to move forward with more independence.
Scenario Two — Living expenses v. legal fees
For one borrower, continuing to pay the expenses for the matrimonial home his ex-spouse still resided in left him with no extra funds to obtain his own place and continue paying his legal fees. His former spouse said she would buy out his interest in the property but was delaying the process.
Securing a $50,000 line of credit from BridgePoint allowed him to pay his outstanding legal account, provide further retainer fees as needed until resolution, and ultimately his lawyer was successful in obtaining a court order for the transfer of the home. Three years post-separation, he moved into his own place and commenced his new life.
Scenario Three — Funding beyond litigation
During an amicable separation, the parties decided on a collaborative process to resolve their jointly owned matrimonial home and numerous investment accounts. The lawyers retained offered a package price to handle the separation, but the former couple did not have the cash to pay upfront. They were able to secure a loan from BridgePoint as joint borrowers, proceed in a timely manner with the liquidation of assets, repaid the funds, and went their separate ways.
For another separating couple, a lengthy divorce process saw one ex-partner accumulate a significant amount of personal debt that she was unable to refinance the matrimonial home and buy out the other party. She received a lump sum loan of $40,000 which allowed her to pay off some of her debt, increase her credit rating, and secure a mortgage large enough not only to buy out her former spouse, but also to repay the BridgePoint loan in full.
Scenario Four — Funding on standby
Beyond specific scenarios, many firms introduce BridgePoint’s Family Law Financing to clients at the very beginning of the process. This approach provides clients with the opportunity to get financing in place, such as with a line of credit, that can be on standby should they need it — and guard against interrupting the process due to funding issues, a scenario that will cost them more in the end.
Preparation is power, and a tool that can be used to establish consistency on a client’s file and prevent them from scrambling for funding options further along in the process when faced with potentially sizable legal fees secures peace of mind for people already facing a daunting, lengthy, and emotional process.
Streamlining a resolution
Working with people who are going through a divorce is taxing on the lawyer and the client but there are ways to ease the process, relieving pressure and providing comprehensive support to get the client where they need to be. Managing the physical and emotional toll of divorce is difficult enough for clients; BridgePoint is available to alleviate some of the associated financial burden. For more information on Family Law Financing and how it can provide access to counsel and a positive outcome for your clients, contact BridgePoint for an introductory presentation.
