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Should You Get A Divorce Loan?

DivorceLoan

Divorces are stressful in many ways. Money is one of the most common stressors. After all, the average divorce costs roughly $15,000.

Anxiety is common when money is involved. Many people even forego getting a divorce because they don’t think they can afford one. But who wants to stick around in a dead-end marriage?

That’s why divorce loans are available and they’re gaining in popularity. However, there are some things you should know about these loans to determine if they are right for you.

What is a Divorce Loan?

There is actually no such thing as a divorce loan. It’s a personal loan that you use for divorce expenses. So any type of personal loan would do. You can use it for anything you want and you don’t have to tell the lender. Many people use it to pay for lawyers, tax advisers, forensic accountants, court fees, and counseling.

However, the lender may or may not approve you for one. It will depend on your credit score, income, and other risk factors. If you are approved, you will need to pay back the loan with interest. Interest rates are typically lower for personal loans than for the rates for credit cards.

Benefits of a Divorce Loan 

A divorce loan gives you freedom. It can give you the extra cash you need to pay a lawyer for your divorce. It can also help pay down debts, which will ultimately help your credit score. This can be helpful for buying a car or home post divorce.

Considerations

While you might feel like securing a loan is your best option in the wake of a divorce, you need to think about your future. Remember that you will need to repay the loan, so try to get a clear picture of your income and assets. You may have to move or get a new job now that you have a new monthly payment to consider. Given that you are in the middle of a divorce, your lender may be well aware that your financial situation is in flux, so it’s possible you may not be approved for a divorce loan anyway.

It may be better to ask friends and family members for an interest-free loan. Also, using your credit card may be an option. While the interest rates may be high, some have interest-free promotions. Setting up a payment plan with your lawyer is another thing to consider. Many attorneys work with clients who have financial difficulties.

Contact a Maryland Family Law Attorney Today

Divorces are expensive. Sometimes people delay them due to a lack of money. That’s a situation when a divorce loan can be helpful.

A Columbia family lawyer from The Law Offices of Todd K. Mohink, P.A. can help you understand your finances going into a divorce so you can make good decisions. Schedule a free consultation today by calling (410) 774-5987 or filling out the online form.

Sources:

msn.com/en-us/money/personalfinance/should-you-say-i-do-to-a-divorce-loan/ss-AAVmNSx

stilt.com/blog/2019/06/divorce-loans/

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