News Private Client Law firms DWF signs divorce-funding deal with Co-operative bank By Margaret Taylor 6 January 2011 15:04 17 December 2015 15:36 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 6 January 2011 at 16:41 V disappointed in the Co-op for going down this route. To my mind, encouraging people to get divorced on the back of a personal loan does not sit comfortably with their stated ethical policies. Reply Link Anonymous 6 January 2011 at 20:33 Occupation: Unemployed Income: Job seekers allowance Assets: Half ex council house worth £130,000 Mortgage: £160,000 Reason for wanting loan: To make sure that she doesn’t get a penny Over to you at the Co-Op………………. Reply Link Rural bliss 6 January 2011 at 21:41 Poor old DWF must be desperate to indulge in this sort of bottom-fishing. Tacky doesn’t begin to describe it. Reply Link sylvia benson 6 January 2011 at 23:46 i concur Reply Link Still in pyjamas 7 January 2011 at 09:42 This is surely part of the Co-Op’s stated aim to enter the legal services market. DWF had better be careful about being used as a trojan horse. Once the Co-Op have their toes in the water they’ll use this experience to set up their own divorce business. High street lawyers should beware even of big branded ethical providers! Reply Link Dayglo Dave 7 January 2011 at 13:21 I wonder if come commentators are being too cynical. I’m not a divorce solicitor but I can see that some form of funding scheme would be attractive to a not-insignificant proportion of people who are getting divorced. When getting divorced one or both parties, for a variety of reasons, may be asset rich but cash poor and have difficulty paying legal fees. Does this scheme not address that problem? Reply Link Sceptic 7 January 2011 at 16:29 “When getting divorced one or both parties, for a variety of reasons, may be asset rich but cash poor and have difficulty paying legal fees. ” If there’s any decent cash on the horizon any legal firm will give the client credit and get paid at the end out of the loot that’s been recovered. Sears Tooth? This is a much better deal for both the lawyer and the client, as there are few constraints on spending to get a result. If the client’s in hock to the Co-op she’ll be moaning every time any money’s spent. Reply Link Mark Andrews 26 January 2011 at 15:26 There appears to be a lot of spin in this story. In the first instance this is a referral agreement. That means DWF are referring clients to the CoOp who will then assess them for an unsecured loan, just as they would any other. Thats not funding thats a standard repayable unsecured loan. As for solicitors extending credit on good case, that would be the right approach , it is however no longer the case. In a recent a recent case we were asked to help on a very large law firm had taken the ladies engagement ring as down payment. Solicitors firms rarely want to take all the risk on their own balance sheet . I have seen clients paying with credit cards, which is much worse than a funding or loan agreement. The reality is many people face a divorce with no money to pay. That gives their former partner a significant advantage into the negotiations that settle the divorce. As horrendous as it is former partners will happily use their financial might to squash the claim against them. Funding allows an equal footing and thus a fair hearing. It is not a perfect solution but it is in the absence of a desire by anyone else to help. Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.