to be financially devastating.
In the midst of emotional turmoil, it’s easy to lose sight of practical matters that can have far-reaching consequences. We’re talking about the money.
Many spouses are dependant on the main breadwinner for day-to day-living expenses, let alone substantial legal fees. When the threat of litigation appears, cash-strapped spouses face the prospect of begging relatives and friends for
support, destroying their own RRSP and retirement lifestyle, or simply giving in to the better financed partner in the marriage.
That’s not fair.
That’s why Canadian Divorce Financing (CDF) offers an alternative: financing the funds you need to pursue legal action.
Don’t let your finances get in the way of a fair settlement.
At CDF, we arrange financing solely on the basis of your share of the assets owned by your household. We don’t look at your credit score or your income. You don’t make any payments until the divorce is finalized. Anyone with assets, such as a home, pensions, RRSPs, stocks and bonds, or other investments, can apply to CDF.
Here’s a typical scenario:
Jane is a stay-at-home Mom, looking after the children — so she has no income. But the matrimonial home and joint assets together amount to $250,000 worth of equity. She needs $40,000 to pay legal fees. CDF can arrange financing for Jane as a percentage of her fair share of the matrimonial assets and other joint assets.
Jane wins her settlement of $100,000. She pays back the loan and fees to CDF. Jane doesn’t need to borrow from friends or family — and she doesn’t need to raid her RRSP or ruin her retirement. The CDF financing package will cover the legal fees and much more.
no income or
inequality of income
matrimonial home +
other joint assets
for legal fees
Financing as a percentage
of the property value
How can the financing be used?
Most of the money will go towards legal fees. But, of course, you still have daily expenses and a mortgage to pay, especially where children are concerned. We can help with that, too. A portion of the financing can be paid out monthly to help with household bills, healthcare and other essential spending.
In addition, the financing can be used for specialist services such as private investigators, CDFA, forensic accountants, and child psychologists.
Reasons you need CDF lending
- Inequality in income
- Childcare costs
- Unemployed or underemployed at present
- You are a stay-at-home parent
- Your only access to money is from your retirement accounts
- You are turning to your parents or other family or friends to help you
- All your equity is in your home with both of you on title
- Your spouse is hiding money from the courts
- You need other specialists such as Private Investigators, Private Investigators - Private investigators play an important role in assisting individuals, law enforcement agencies and corporations. CDF will involve a PI to help find hidden assets related to Divorce settlements. Certified Divorce Financial Analysts Certified Divorce Financial Analyst - A member of the Institute for Divorce Financial Analysts who specializes in the financial issues surrounding divorce. The role of the CDFA includes acting as an advisor to one party's divorce lawyer, or as a mediator for both parties. , Forensic Accountants Forensic Accountants - Forensic accountants possess specialized accounting skills. They utilize investigative, auditing, and accounting skills to analyze an individual's financial statements while investigating fraud. , Child Psychologists Child Psychologists - these professionals are expert in dealing with issues that may arise where children are adversely affected by a divorce
- You need assistance with your living expenses
- You don’t want your business financing to be reduced
Advantages of CDF lending
- Ease of use - answer a few simple questions and we do the rest
- Leave all assets in place to reduce taxes
- No payments until the divorce is finalized
- Greatly reduced cost compared to withdrawing funds from personal investments, especially RRSPs
- Ability to borrow more if necessary
- In most situations no need for personal guarantees
- Your business finances need not be affected
- No income verification
If you have assets, such as a home, pensions, RRSPs, stocks and bonds, you will qualify.
Three steps to getting your CDF settlement financing
- Complete your details on our form, and authorize CDF to contact your lawyer.
- Your lawyer provides all relevant financial background and documents to CDF.
- Documents are sent to your lawyer for you to sign. Funds are sent to lawyer’s trust account and distributed to cover specialist costs, living expenses and legal fees.