Some years ago I was invited to join a chat between an IFA and a Regional Bank manager about financial products for the funding of Ancillary Relief disputes. It is this which is discussed in this post. (In Legal Aid terms Divorce is a Legal Help matter worth a fixed fee of £146 in most circumstances, Ancillary Relief, a Certificated matter involving litigation and higher fees)
I link to the story because it is an issue which LA firms will have to address as AR cases move out of scope in April next year – unless there is Domestic Abuse involved. The obvious benefit of such a change is that firms will be able to charge at realistic commercial rates. How many such cases will be progressed under such litigation funding products remains to be seen – as do the funding arrangements the Co-op will employ on previously Legally Aided cases.
The funding, by a small fixed fee, of Divorce proceedings may also appeal on the horizon, perhaps with local Conveyancing-like price wars. If the latter does take place we can be certain that there will be very little of the “profit from Divorce” that Rachel asks about.
