A recent case has highlighted the staggering legal costs that can arise in divorce proceedings.
In the recent case of SM v BS (Legal Services Payment Order), the wife claimed that she would need a significant amount of money to cover her legal costs. The judge ruled that without this financial support, the wife would not have been able to access proper legal representation. Thus, the court ordered the husband to pay more than £750,000 towards her legal fees covering:
£178,000 for her past legal costs
£500,000 for future financial remedy proceedings
£75,000 for disputes over the family home
However, the case also serves as a stark reminder that securing a Legal Services Payment Order (LSPO) is far from straightforward.
LSPOs are available in very limited cases, and the person applying must prove they have no other means to pay for legal representation, including:
Being unable to secure a personal loan or funding through a litigation loan provider
A lack of income/capital to pay for legal representation
Not qualifying for Legal Aid
Being unable to offer a registered charge against property
Their solicitor refusing a Sears Tooth Agreement (which allows legal fees to be deducted from the final financial settlement)
The intention is to provide equality of arms and prevent one party being left unrepresented amidst highly contentious litigation, ensuring that there is an even playing field.
Why do LSPOs matter?
Despite the difficulties that are likely to arise in obtaining a LSPO, they can prove to be a very valuable tool in ensuring that a party is not denied access to legal advice in circumstances whereby they would otherwise have no other ability to fund those costs, which would then leave a party in an incredibly vulnerable position.
Expert advice
If you're worried about how to fund your legal fees in a divorce, early advice is key. Our expert family law team can guide you through your options, ensuring you’re not left without legal representation.
Contact Stacey to discuss this further.