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In the event of a divorce becoming contested and rancorous, a non-earning spouse is at a significant disadvantage. An affluent party can pay for solicitors, expert witnesses and, as they can already afford to live comfortably, are under no pressure to settle.

Parties that have no funds available on the other hand will be left with no option but to settle for significantly less than they are reasonably entitled to or to represent themselves and risk being awarded even less. Equally disheartening for any individual that finds themselves in this situation is the fact that any standard creditor is unlikely to lend money – let alone the significant amounts required in such instances – to individuals without proven incomes or valuable assets that are not being disputed.

This, though, has created a gap in the market that others have sought to fill. Over the past five years, a number of creditors have begun to offer loans that are tailored to such individuals' circumstances. Divorce loans differ from standard loans in that the individual in receipt of credit does not need to begin repaying their loan until their divorce has been finalised. Some lenders will charge their clients interest on the loan whilst others instead take a percentage of any settlement their client is awarded.

Whilst it would seem that such loans are the ideal solution for spouses that find themselves in such situations they are not immune to criticism. Many have stated concerns regarding conflicts of interest, particularly when the lender requires the authority to make decisions concerning the settlement. In such instances, critics argue, a person could find themselves forced to agree to a settlement they do not find satisfactory. Additionally, others have argued that companies may attempt to breach confidentiality laws under such arrangements.

Others have pointed out that it is by no means uncommon for spouses – fuelled by discontentment – to expect unrealistic settlements. Critics argue that such individuals are more likely to aggressively pursue impracticable settlements if they are backed by a substantial loan.

So, what do you think? Are divorce loans the answer for non-earning spouses? Are they likely to prove to be a road to ruin? Let us know what you think by leaving a comment below.