Can You Get A Divorce Loan, And Should You?
Everyone, from party guests to standup comedians, likes to gripe about how divorce wrecked their finances, and some unhappily married people confide in their friends that the only reason they are still married is that they can’t afford to get divorced. Trying to have the cheapest possible divorce is not a good solution; it usually backfires, and then you end up spending even more than you would have if you had hired a divorce lawyer before you filed for divorce. People borrow money to pay for all kinds of things that will only give them a temporary escape from their problems, such as a vacation to take their minds off of a failing marriage or a master’s program to wait out a sluggish job market, but doesn’t it make more sense to borrow money that will actually help you accomplish your divorce? Even if borrowing is the only solution in the short term, a Palm Beach County divorce lawyer can help you achieve a divorce settlement that will enable you to start your post-divorce life in a strong financial position.
How a Divorce Loan Can Help
Taking out a personal loan to pay for a divorce is more common than you might expect, in virtually every tax bracket. If you and your spouse have agreed that an uncontested divorce is the only financially feasible option, then taking out a personal loan might be the simplest way to get it done. You might have to live on a shoestring budget to pay it back, living with your parents and filling all your free time with paid gigs, but at least it will get you out of your marriage to your cheating, financially irresponsible spouse.
People who appear financially well off sometimes take out personal loans for their divorces, too. This most often happens when one spouse controls the money in the marriage. In this regard, a divorce loan can be the first step to freeing yourself from financial abuse. Lenders usually base the interest rates on the divorce settlement the borrower can expect to get.
What Can Go Wrong With a Divorce Loan?
In general, it is unwise to borrow more money when you are already in debt. The interest rates on personal loans can be as high as one third of the value of the loan, especially for borrowers who have little credit history or who already owe a large amount on existing debts. If you have a family member who can afford to give you a cash gift, this is less financially risky; cash gifts of up to $15,000 per year are tax-free. Likewise, you might be able to request that your spouse pay your attorney’s fees in the divorce case, especially if your spouse’s income is much higher than yours.
Contact Us Today for Help
A Boca Raton divorce lawyer can help you get out of a bad marriage, even if you cannot afford expensive divorce litigation. Contact Schwartz | White for help today.