What is a divorce loan?

When you file for divorce in Texas, you may be entitled to a portion of your former spouse’s assets. Some people even walk away from a divorce with more money than they had when they got married. But before the divorce is finalized, you’ll have to figure out how to pay for the legal fees, attorney bills, court fees and everything else that comes along with the process.

What is a divorce loan?

Typically, most people pay for their divorce out of pocket. But an increasing number of people take out a “divorce loan” to pay for their upcoming attorney fees and other expenses. A divorce loan is a personal loan that covers most of the costs of the divorce with the understanding that the individual might be able to pay it back when they receive their share of the marital assets.

Some people receive enough assets in the divorce that they’re able to pay off the loan right away and move on with their lives. However, it’s important to note that you don’t know exactly how much you’ll receive in the divorce. If you don’t walk away with enough money to pay off the loan, you could be paying off your debts for the next several years. A divorce loan is a personal responsibility just like student loans and credit card debt. If you already have large amounts of debt on your record, you might want to look at other ways of financing your divorce.

Do you have to hire an attorney when you get divorced?

You want to look out for yourself during your divorce, which may require a professional’s assistance. A family law attorney may help make sure that you get the assets you’re entitled to and negotiate a fair child custody settlement with your spouse.