Butterfield Private Bank is launching a new product designed to assist clients with a loan that covers complex and potentially expensive div...

Butterfield Private Bank is launching a new product designed to assist clients with a loan that covers complex and potentially expensive divorce proceedings. The product includes the payment of legal fees and living expenses during divorce proceedings, to a ceiling of £150,000 ($260,000). The Butterfield Divorce Loan is designed to help by funding costs at a time when the partners have other things on their mind and solicitors may, in any case, be seeking to freeze assets. The loan is secured on the individual’s share of the matrimonial home or on the share of the divorce settlement. Loans can be from as little as £50,000 to now as much as £150,000. No capital repayments are normally required for the duration of the loan. When the divorce is settled the loan should be repaid. The loan is available on a "draw-down" basis so that individuals only pay interest on the money that they need. Interest is usually between a set margin above UK base rate of between 2 and 5 per cent. Paul Turtle, managing director, Butterfield Private Bank, said in a statement: “Divorce can involve both partners in expensive legal bills and yet the expenses of life will continue as before. The Butterfield Divorce Loan can help by funding these costs at a time when the parties involved have other priorities to consider. “We have offered divorce loans to clients for a while and we have recently seen a significant increase in clients’ funding requirements. We hope our loans will help people at what is often a very difficult time.”