/// 12/20/2010
Divorce is a financial transaction that will require the splitting of marital assets such as automobiles, homes, businesses, investment funds savings accounts and more. The money required to ensure an equitable settlement, whether by mediation or litigation can be exceptionally expensive, dwindling account balances before a settlement is even reached. While the parties involved in divorce may expect the settlement to outweigh the divorce costs, it does not necessarily mean each party will be able to afford full representation. Often funds are tied up in assets, such as real estate, that cannot be easily liquidated. Or funds may not be accessible to one spouse where the other title to a bank or investment account may be held solely in the name of the other spouse. Or, a spouse may request, and a court may grant, an order freezing funds and assets to prevent the waste or disappearance of marital assets during the divorce process. In these situations one spouse, usually the homemaker or dependent spouse may be frozen out the financial means necessarily to meet her spouse on equal ground and achieve a fair financial settlement. When situations such as this occur, the end product can be disappointing and unfair. The divorce attorneys of Gailor, Wallis and Hunt understand that divorce is a complex business transaction, and are well aware of the time and money that goes into the divorce process. With this understanding, they present a newly emerging concept of divorce funding. According to an article recently published by The New York Times, titled Taking Sides in a Divorce, Chasing Profit,” the number of companies investing in divorce is small…but other businesses are gearing up.”
Divorce funding, or providing the finances to a spouse necessary to make certain a more level playing field and a fair settlement, is proving to be both profitable for the companies putting up the funds, as well as those enlisting their assistance. The emergence of divorce funding is a continuation of the trending towards investing in the lawsuits of others, according to the article. The text points out that, “banks, hedge funds and boutique firms like Balance Point [a divorce funding firm] now have a total of $1 billion invested in lawsuits at any given time,” an estimate given by industry experts.
Balance Point is one of the first U.S. firms to work solely with divorces. Founded by an attorney with money acquired through her own divorce, Balance Point ensures the dependent spouse who is not in possession of funds or assets necessary to defend his or her interests can retain and pay competent lawyers and experts to win his or her fair share of the marital assets. According to Founder Stacey Napp, “Everybody knows somebody where at the end of the day, the divorce was not equitable…We want to help those people, the underdog, to make sure they get their fair share.”
According to the article, Balance Point’s main demographic consists of women without jobs who are raising the children. The women’s husbands typically run their own business, thus making it difficult to obtain financial information. These women are at a disadvantage in the divorce, as the husbands typically retain control over the family finances, rendering the wives helpless unable to fund the cost of the divorce attorneys, accountant’s, experts and court costs that the process requires.. As one woman who enlisted the services of Balance Point explained her choice to enlist the services of a divorce funder, “I don’t view it as a loan; I view it as an investment in my future. They are helping me to get what is rightfully mine.”
The Raleigh, North Carolina divorce attorneys of Gailor, Wallis and Hunt present this information in hopes that it may provide consideration for obtaining funding for the divorce process, or at least expand the view of possibilities when it comes to paying for litigation. Divorce is an inherently emotional and tumultuous process and can also prove to be financially turbulent as well. The attorneys at Gailor, Wallis and Hunt are noted for the prosecution and defense of complex business oriented divorce cases and financial transactions including business valuations as well as difficult custody and other marital disputes. As one of North Carolina’s most accomplished domestic relations family law firms, lawyers at GWH are knowledgeable and experienced in all matters of family law, including alimony and asset distribution.
To contact the North Carolina divorce lawyers of Gailor, Wallis and Hunt, call them at 866-362-7586.
Gailor, Wallis & Hunt, PLLC
Divorce is Tough – So Are We
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