What can a legal fee loan be used for?

When your clients borrow money as a legal loan, they've got flexibility in how they use the funds – but they can’t use them for just anything.

Accessing high-quality legal advice

If your clients don’t have income to cover the cost of their family law matter, or their money is tied up in a property settlement, a legal loan helps cover the cost of getting the advice they need, when they need it. 

Existing legal debts 

Because marriage breakdowns can be complicated, your clients may already have legal debts to handle. Legal loans can be used to pay outstanding fees, as well as for future legal costs. 

Matters handled outside of court

There’s no need to head to a courtroom to access funds through a legal loan. If your clients are hoping to avoid litigation, legal loans can also be used for non-confrontational alternative dispute resolution (ADR) like mediation, arbitration and pre-action procedures. 

Assorted fees 

A legal loan also isn't just for legal fees – it can be used to cover a variety of costs associated with the legal process. These can include third-party costs like valuers and accountants valuing the asset pool, complicated structures and asset protection schemes.

Limited personal reasons

Your clients might also be able to access a small amount of the overall loan for personal reasons. What are legal loans used for in everyday life? Your clients can use them to:

  • Improve their house prior to putting it on the market to increase the sale price
  • Repay family members who have loaned them money
  • Pay for advice on their new circumstances, such as from a financial planner
  • Pay off a high-cost debt, such as a credit card or tax bill
  • Tide them over while you’re waiting on a property settlement, helping them avoid interim applications and partial property orders

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