With recent cutbacks in the legal aid system, we've seen far too many tragic cases of injustice for those without ready cash to fight for their rights

Jeremy Freedman, Amalfi director

A London firm of solicitors and a private bank have joined to create a loan for women who are unable to divorce because of the costs involved.

The "divorce loan" being offered by Alternative Matrimonial and Litigation Funding Ideas (Amalfi) Ltd has been created in conjunction with private bank Leopold Joseph & Sons.

The scheme works like an overdraft - legal advice is added up during the case, until the cases is resolved and a settlement reached.

Finer detail

No funds are paid until the divorce case is settled, and the loan incurs interest at 7% above base rate.

In practice, for example, a woman living in a jointly-owned property worth �350,000 with a �100,000 mortgage and an annual income of �10,000 would pay about �15,000 in legal fees.

Jeremy Freedman, Amalfi director said that the service could help many women.

He said: "With recent cutbacks in the legal aid system, we've seen far too many tragic cases of injustice for those without ready cash to fight for their rights."

"Amalfi gives people, whether asset rich and cash poor, or with few independent financial resources, an equal chance at a fair outcome."

Equal share

The launch of the loan also coincides with the first anniversary of the White versus White divorce case, which made legal history.

The case opened up the possibility of equal share divorces long favoured in American courts.

Pamela White had originally been awarded �900,000 by the Court of Appeal, but a House of Lords ruling increased the contribution to reflect her input in the marriage and she had it uprated to �1.5m.

Lawyers have since remarked that divorces have become more acrimonious with couples fighting over the last few per cent, and eager to prove their contribution to the marriage.