Growth in business for financing divorce

There has been a significant growth in the amount of money lent to one or other of divorcing couples in order to fund their legal fees. That is according to an article in this week’s Economist.

The article quotes the example of the British company, Novitas Loans, which says it is currently lending to 1,500 people in the process of divorcing. The loans are extended at a rate of 18 per cent interest. Novitas says that, without the loans, they would not be able to pursue their legal action.

Demand for loans of this type has increased substantially following the UK government’s decision to restrict legal aid in divorce cases, according Nigel Shepherd of Resolution, an association of family lawyers.

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