How to Finance a Divorce
Updated
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When it's time to write a new chapter in life, a personal loan can help you pay for a divorce. Here, we'll talk about how much divorce costs, how the best personal loans work, and other options for covering the costs.
The average cost of divorce ranges from $7,000 to $15,000, depending on where you live and whether the divorce is contested or uncontested. The total cost depends, in part, by who represents you in court.
Divorce lawyers charge $100 to $400 per hour, depending on how complex your case is. Most divorce attorneys charge by the hour or work on retainer. A retainer is a fee you pay upfront before any casework begins.
One option for covering the cost of a divorce is a personal loan. You can use it for divorce-related costs and pay it off in monthly payments. And if you're getting back on your financial feet, you'll appreciate that you can customize monthly payments to fit your budget.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Apply Now for Discover Personal Loan
Powered by Credible 
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
8.99% - 19.49%**
|
$2,000 - $30,000
|
740
|
|
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
6.70% - 35.99%³
|
$1,000 - $50,000¹
|
300
|
A personal loan is money you borrow from a lender and repay with interest. Personal loans are typically paid in equal monthly installments. These loans can be used for almost any purpose, including divorce. When we refer to a "divorce loan," we're talking about a personal loan that is used to pay for a divorce.
If you're considering a personal loan to pay for divorce, here are a few good points in their favor.
There are some possible downsides to personal loans, too.
Ideally, if you decide to take out a personal loan to pay for your divorce, you'll score the lowest possible interest rate. Getting a low rate depends on factors like these.
Borrowers with higher credit scores typically qualify for loans at better rates. If your score is lower than you would like, you may consider borrowing the money from a lender that allows cosigners and asking someone you're close to to cosign the loan. When you bring on a cosigner, the lender considers their creditworthiness, and if that person has a high credit score, you benefit by paying a lower interest rate on the loan.
Lenders want to know that you're bringing in enough money each month to repay the loan. If you can't provide proof of employment and income, you are likely to have a tough time getting through loan approval. However, your employment history may give a lender enough confidence in your ability to repay that you're offered a lower rate.
With a fixed-rate loan, you can be sure of what your monthly payment will be because the interest rate never changes, you'll always have the same monthly payment and the same interest rate. Variable rates, on the other hand, can increase and decrease over time.
The personal loan interest rate on variable-rate loans usually starts lower than that of a fixed-rate loan, making a variable-rate loan look more attractive. However, if rates increase, you could find yourself with a loan you can't easily afford.
If you take out a secured personal loan, you put an asset of value, such as your home or car, up as collateral. While most personal loans are unsecured, finding a lender that offers secured loans may be beneficial. Since the lender knows it can repossess the collateral if you miss payments, there's less risk and you're likely to land a lower interest rate.
If you borrow money over a longer period of time, there's more risk to the lender and you may be required to pay a higher interest rate. Shorter-term loans sometimes come at a lower rate.
Generally, it's best to borrow the smallest amount possible when you get a loan. You'll pay interest on the amount you borrow. The more you borrow, the more interest you'll pay.
Different lenders have different minimum required credit scores. Before going through the hassle of applying, check your score. The higher the score, the lower the interest rate you're likely to be offered. You can often check your credit score through your bank or a credit card in your name.
If your credit score is low, now is the time to decide whether you know someone who has a high score and would be willing to cosign the loan.
To get a loan that works for you, compare multiple lenders. There are plenty of reputable online loans available, as well as loans from brick-and-mortar institutions. Shopping around is an important step, as each lender has its own lending criteria and each sets its own interest rates and fees.
Once you decide which lenders best fits your needs, go through the prequalification process with at least three of them. Most lenders will ask you to provide basic information, such as:
When a lender tells you that you've prequalified for a loan, it means the lender believes you're a good candidate and are likely to make it through the loan approval process. Once you've heard back from all lenders, compare their offers and decide which one you'd like to go with.
The only real difference between a full loan application and the application you fill out to prequalify for a loan is the amount of information you'll need to provide. For example, you'll be asked to provide proof of income and a list of monthly debts
Once your application makes its way through underwriting, the lender will let you know that it's been approved. At this point, all you need to do is read the loan contract carefully and ask for clarification if there's anything you don't understand. Finally, you'll sign the contract and wait for loan proceeds to hit your bank account.
As you consider the pros and cons of using a personal loan to pay for divorce, you also need to consider your alternatives. Here are a few other options to fund your divorce.
This can be tricky if you and your spouse have joint access to a savings account. But if you can access spare funds and pay your lawyer from available cash, you can avoid the loan application process and paying interest. The downside, though, is that this savings won't be available to set up your new life after divorce.
Not all lawyers allow you to charge your legal fees, but some do. If you charge your legal fees, you may have to pay a higher interest rate than you would with a personal loan -- and your credit limit may not be high enough to fully cover divorce costs.
The upside is, you can borrow money as you need it and don't have to take a big loan at once -- and could potentially request a credit line increase if it turns out you need more money. If you can get a card with a 0% promotional APR, you could avoid paying interest on the money you borrow for your divorce if you can pay back what you owe within the promotional period.
If you have family members willing to lend you money, you can also avoid applying for a loan and paying interest. Unfortunately, this could make your family relationships uncomfortable, especially if you can't pay back the loan right away. And your family members may feel like they get to weigh in on decisions you make during your divorce if they lend you money.
Some divorce attorneys offer payment plans that allow you to split up the cost of legal representation. You'll likely have to put down an initial retainer, but some attorneys may allow you to pay additional costs in monthly installments.
As you can see, in many cases, a personal loan is often a better choice than other options -- but it will depend on your situation.
Whatever approach you choose, try to keep borrowing costs as low as possible by looking for ways to cut costs during divorce. You can often save money on divorce if you're able to negotiate on some issues outside of court through mediation.
And be sure to shop around for the most affordable financing possible because you don't want to start your new single life with a bunch of costly debt hanging over your head.
A divorce loan isn't a real type of loan, however, you can obtain a personal loan and use it to pay for divorce-related expenses.
According to Lawful.com, the average cost of a divorce attorney ranges from $100 to $400 per hour, although the amount charged varies significantly, depending upon where the divorce takes place and whether it's contested or uncontested.
You may be able to petition the court to make your spouse pay for attorney fees if they earn significantly more than you do, depending on your state's laws. However, you'll probably have to come up with some money upfront to hire an attorney to represent you as you make your request.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Citi® Personal Loan Disclosure
**Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time. You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Existing Citi deposit and credit card customers who have been a Citi customer for less than 12 months are not eligible for a Citi® Personal Loan.
If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.
Rates as of 06-03-2025. Your APR may be as low as 8.99% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, a loan term of 24 or 36 months, and includes a 0.5% APR discount for enrollment in automatic payments at the time of loan origination. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
Existing Citigold and Citi Priority customers will receive an additional 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.
To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.
Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non-Citi account when using direct deposit. Or, you can select to receive a check by mail in approximately 5 business days.
Personal loans are made available by Citibank, N.A., Equal Housing lender
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Citi® Personal Loan Disclosure
**Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time. You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Existing Citi deposit and credit card customers who have been a Citi customer for less than 12 months are not eligible for a Citi® Personal Loan.
If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.
Rates as of 06-03-2025. Your APR may be as low as 8.99% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, a loan term of 24 or 36 months, and includes a 0.5% APR discount for enrollment in automatic payments at the time of loan origination. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
Existing Citigold and Citi Priority customers will receive an additional 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.
To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.
Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non-Citi account when using direct deposit. Or, you can select to receive a check by mail in approximately 5 business days.
Personal loans are made available by Citibank, N.A., Equal Housing lender