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Lawry
Lawry, Solicitor
Category: Family Law
Satisfied Customers: 380
Experience:  Expert
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Can I apply for a loan while financial proceedings are

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Can I apply for a loan while financial proceedings are ongoing and put that on the form e as liabilities

Hi,

My name is ***** ***** I will try and help you today.

There is a duty of full and frank disclosure during financial proceedings, so as long as you disclose the information on your Form E there should be no problem.

What is the purpose of the loan?

If one spouse has incurred a debt and has had the sole benefit of the debt, then the court may regard this as one that the individual spouse should be responsible for, as part of any financial settlement.

Customer: replied 13 days ago.
the purpose of the loan is to pay for representation and advice on respect of the financial proceedings.
Customer: replied 13 days ago.
Also as I have had to borrow money from friends and family to help me fund various court cases can I disclose this on form e as I have these debts which I need to pay back to them

Thank you for that.

Funding legal costs through credit is quite common in divorce cases.

If you use credit to pay for divorce proceedings it is shown as a “need” and is taken into account when dividing the matrimonial assets.

Options for loans include:

    • A loan from family or friends. The terms of this “soft loan” should be written into a record of agreement to ensure that it is taken into account in divorce negotiations or a court case
    • A commercial loan, from a regulated lender, such as a personal loan or credit card
    • Specialist lenders who advance money by taking assets such as expensive motor vehicles, paintings or jewellery as security.

Yes these can be disclosed.

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