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Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Always consult a licensed financial adviser before making any financial decision. Details, terms, and conditions of financial products can change. Confirm all information directly with the provider before proceeding.
Divorce is a financially challenging process, and for many Kiwis, the cost of separation, particularly legal fees, poses obstacles to moving on.
Financial lender JustFund estimates that the average cost of divorce in New Zealand can reach up to $30,000. For individuals caught between earning too much to qualify for legal aid but can’t afford a lawyer, the financial strain can delay or prevent them from leaving unhappy or harmful relationships. Further, the risk of settling without proper legal advice may result in an unfair financial outcome.
“Too many New Zealanders are stuck in limbo because they simply can’t afford to leave; or they settle for less than they deserve because they get worn down by the financial pressure,” says Lauren Milne, family law barrister and Director of Family Law (NZ) for JustFund.
“We want to ensure that access to justice isn’t a privilege — it’s a right. JustFund enables that right to be exercised by reducing the financial strain and empowering clients to pursue a fair settlement on their terms.“
A new option for legal fee financing in New Zealand
Australian-founded JustFund is a financial lender that recently launched in New Zealand. It provides lines of credit for family law fees and disbursements relating to separation and divorce.
What makes JustFund different from personal lenders is how it approves loans. Instead of focusing on borrowers’ income or credit scores, approval is based on the likely outcome of the relationship property settlement.
How JustFund lending works
According to JustFund, here’s how the process works:
- Borrowers apply for funding through their family lawyer.
- Approval is based on the expected property settlement, not income or credit history.
- If accepted, JustFund pays the borrower’s legal costs straight to the law firm.
- The borrower repays the loan once the legal matter is resolved.
- Loan amounts can be between NZD $5,000 and $1 million.
JustFund is one possible solution, but it’s important to understand all options before applying for a loan and seeking advice from a licensed financial adviser to understand the terms of lending, loan fees and interest rates. Because repayment is based on a property settlement, there’s the risk that it may not be enough to cover the full loan. Further, borrowers are responsible for repaying any shortfall, and JustFund loans may include fees and interest rates.
Supporting people from all backgrounds
Since its inception in Australia, JustFund has supported people from diverse backgrounds navigating financial barriers to legal support, including business executives, lawyers, doctors, teachers, nurses, parents and self-employed workers.
To learn more, visit JustFund.co.nz. It’s essential to fully understand the financial product’s terms and seek independent financial advice.
Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Always consult a licensed financial adviser before making any financial decision. Details, terms, and conditions of financial products can change. Confirm all information directly with the provider before proceeding.
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