Whilst instructing a solicitor to deal with your family law issues can alleviate a lot of stress, it can also create anxiety surrounding how you will pay for such advice, especially if the case becomes protracted. Arguably, paying for legal fees as you go offers the best of both worlds. But how does it work? This article explains pay-as-you-go as a divorce funding option.
Whilst instructing a solicitor to deal with your family law issues can alleviate a lot of stress, it can also create anxiety surrounding how you will pay for such advice, especially if the case becomes protracted. Arguably, paying for legal fees as you go offers the best of both worlds. But how does it work? This article explains pay-as-you-go as a divorce funding option.
If you have a family law issue and you feel you need legal advice, contact specialist family solicitor Mark Heptinstall of Slater Heelis Solicitors. He is recognised as a ‘Leading Individual’ in The Legal 500 and ranked in Chambers UK, and is described as having “the amazing ability to bring calm into troubled waters”.
How are solicitors involved in a pay as you go scenario?
If you are representing yourself, you may want legal advice about a particular issue or need a specific form completed and want to ensure it is accurate. Sometimes a solicitor’s involvement may be limited only to the preparation of certain documents, or, in other cases, you may want to take advantage of the solicitor’s legal knowledge as to the merits of your case. Essentially, when solicitors are instructed on a pay-as-you-go basis, you are given a tailored approach based on your individuals circumstances as and when you need it.
How does pay-as-you-go legal advice work?
Pay-as-you-go family law services allow you to pay for legal advice as you need it, rather than paying for an agreed amount of work upfront. You might pay per meeting or for specific tasks, such as letter writing or photocopying, and typically receive an invoice following completion of each task. Depending on the firm in question and your agreement with them, you can pay on the day, set up a standing order, or, less likely, pay when your case is finished.
Pay-as-you-go may be a good option if you want to have the flexibility to choose when you need legal advice, and don’t want to pay for work you don’t necessarily need. Here are some examples of where pay-as-you-go solicitors can help:
- Advise you on the law and best practice procedure
- Assist in drafting documents such as divorce applications, witness statements, and other documents
- Advise you about representing yourself at court (when you are acting as a litigant in person)
- Represent you at court or assist you in finding a barrister
- Advise on any specific issues that arise during your case, such as statements from the other side or expert reports
What are the benefits of pay-as-you-go legal advice?
Pay-as-you-go legal advice can have significant benefits. These are:
- The process is simple, effective, and flexible
- There are considerable cost savings compared to full representation
- You retain control and ownership of your case
- Enables you to afford legal advice throughout your case without the worry of unmanageable bills or losing your legal advice when you need it most
- You do the things that you don’t need a solicitor for, such as dealing with general correspondence
- You can avoid costs “surprises” by paying as you go rather than receiving a large bill at the end of the case
Can I pay for my divorce in instalments?
Most solicitors know that having flexible payment options in place is essential in the provision of legal services. Whenever we need to make a major purchase, for example, it’s great to be able to spread these costs over a longer, more affordable, period. Doing so minimises the impact the purchase has on someone’s immediate financial situation, gives them the opportunity to plan ahead, and makes goods and services more accessible.
If you are worrying about paying for your legal fees, this makes an already difficult process harder. Therefore, most firms will offer clients the opportunity to pay for fixed-fee packages via manageable monthly instalments.
This is not necessarily the same things as pay-as-you-go, but offers an alternative for someone who is less confident dealing with the majority of their case by themselves. When you contact your solicitor of choice to arrange your first appointment, ask what payment options they can offer.
Can payment be made after the case is concluded?
Some law firms will let clients pay their legal fees when their divorce or dissolution is final, and they’ve reached a financial settlement. This type of funding is called a “Sears Tooth agreement” after the law firm that first offered it. Not all firms offer this option, and of those that do, might not offer it to all clients, especially in more financially modest cases or where the outcome is less certain.
If the family home has to be sold as part of your financial settlement, your solicitor might let you pay the legal bill from the proceeds of sale. You would be required to sign an “irrevocable mandate” which instructs the solicitor selling the house to pay any outstanding legal fees to your solicitor. You will then be given the balance of the monies.
Are there any other alternatives for funding family litigation?
You might be able to apply for a litigation loan which is designed to pay for the costs of the divorce. However, very few firms offer these, nevertheless it is worth asking your solicitor if it is something they do. The loan provider will assess the prospects of your case and the likely level of settlement. If the lending criteria are met, they will release the funds directly to your solicitor to cover legal fees as and when they become due.
The advantage over a traditional loan is that you have a pre-agreed maximum loan, and you will only borrow what you need as your legal costs rise. When your divorce is finalised, the money to pay the loan will be taken directly from your financial settlement, the balance is then released to you.
If you are thinking of exploring this funding route, you should find out:
- If there are any set up fees
- How much interest you will pay and at what rate
- Whether the lender requires any security to be given, such as part of the family home
- Whether you can pay off the loan early without having to pay an early repayment charge
You should think carefully before borrowing money to fund a divorce and it is important not to take out a high-cost loan. This could be hard to repay when you’re already facing higher costs because of your separation.
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