There’s a relatively new breed of lender out there. Instead of mortgages and car loans, they offer loans to help a divorcing spouse fund their divorces, everything from attorney’s fees to expert fees, even your living expenses during your divorce.

In return, they collect a “cut” of your divorce settlement or court award.

A financial expert enthuses that divorce lenders view divorce as an “investment opportunity”.

The notion of being able to borrow now and, more or less, let the other spouse / settlement or award pay dearly later clearly has appeal value. Unfortunately though, this cottage industry is likely not a fit for the overwhelming majority of divorces.

Lenders of all stripes have loan underwriting criteria. And those generally are applied to well-documented assets and income.

That may tend to result in denials of financing to dependent spouses whose spouses operate closely held businesses. A case segment where the dependent spouse also faces more of a challenge when going to court seeking an order that their spouse pay their temporary attorney’s fees, expert fees, living expenses and case costs.

Professional divorce financing may be a great and fast option where the advantaged spouse’s assets and income are readily proved.

But it remains to be seen whether and how family court judges scrutinize the loan repayment terms – and treat them in the final settlement / award.

Read more in this Forbes article:Can’t Afford Your Divorce? New Firms Specialize In Divorce Funding