News & Resources

Why this matters now

Litigation funding in divorce is under growing scrutiny. The Civil Justice Council published its final report in June 2025 recommending regulation. The government announced in December 2025 its intention to legislate. The cases and investigations below show why reform is overdue — and what is at stake for the women affected.

largest documented debt from a single contested divorce case
£ 0 m+
of litigation funding applicants in family law are women
0 %
CJC final report recommends formal regulation of litigation funders
0
Unmasking Litigation Loans: Rosie Heys Exposes the Dark Side of Legal Funding

DWD co-founder Rosie Heys Rosie Heys, in a podcast on the predatory practices of litigation loan companies targeting vulnerable individuals. Rosie reveals how these companies exploit divorcing individuals by offering high-interest loans, often resulting in severe financial and emotional distress. Through real-life stories and statistics, Rosie exposes the impact on victims, including homelessness and mental health issues. The discussion further dives into the lack of regulation and oversight, urging listeners to take action and seek redress. Learn more about this critical issue and find out how to protect yourself and your loved ones from falling into these traps.

Read article
Exclusive: Solicitors probed over client loans to fund divorce cases

The Law Gazette’s landmark investigation revealed that more than a dozen clients claimed they were pressured into taking out high-interest Novitas loans by their solicitors, often with minimal affordability checks and inadequate independent advice. The SRA confirmed it was investigating multiple complaints.

Read article
Litigation funder stymied as divorcing couple drop proceedings

A case highlighting the structural tension between funders’ financial interests and clients’ ability to settle: when both parties chose to end proceedings, the funder’s prospects of recovering the loan and accumulated interest were left in doubt — raising questions about exit clause enforceability.

Read article
‘Irresponsible’ and ‘unfair’: Litigation funder Novitas Loans penalised after lending money to both parties in couple’s dispute

The Financial Ombudsman Service found that Novitas Loans had funded both sides of a property dispute simultaneously — creating a direct conflict of interest the company failed to manage or disclose. The FOS ruled the lending irresponsible and the arrangements unfair, ordering redress to the borrower.

Read article
Divorce is not a “blank cheque” for litigation, judge warns

A family court judge cautioned that the availability of litigation funding must not be allowed to transform divorce proceedings into open-ended, costs-insensitive disputes — directly challenging the commercial incentives that drive extended litigation for funders.

Read article
Level receives £20m venture capital backing to help finance family law disputes

UK litigation funder Level secured £20m from Guernsey-based 1818 Venture Capital to expand its family law lending portfolio — a deal that highlights the commercial appetite for this market and the scale of capital now flowing into divorce funding products.

Read article
FT: The litigation funding business model under scrutiny

The Financial Times examines the growth of the litigation funding market in family proceedings and the regulatory questions it raises — including the structural conflicts of interest that arise when solicitors have established referral relationships with funders.

Read article
‘I took out a loan to fund my divorce – I was left homeless and £300k in debt’

A first-person account documenting how a litigation loan taken out to fund divorce proceedings left a woman homeless and facing a debt exceeding £300,000 — illustrating the human cost of inadequate consumer protections in this sector.

Read article

Downloads

Advocacy documents for use with press contacts, MPs, and parliamentary researchers.

Press Release

PDF · Launch statement & background

Letter to MPs

PDF · Template advocacy letter

DWD on Novitas

PDF · DWD Information regarding Financial Ombudsman Decisions on Novitas

Resolution Report 2024

PDF · Background on Industry Report by "Resolution"

Young v. Young

PDF · Landmark Judgement Summary

Regulatory timeline

2013

LASPO removes legal aid from most divorce cases. Litigation funding market expands rapidly.

2022

Law Gazette investigation into Novitas. SRA confirms probes into solicitor conduct.

2024

CJC commissioned to review third-party litigation funding. Interim report published October 2024.

Jun 25

CJC Final Report recommends light-touch regulation, enhanced court oversight, and PACCAR reversal.

Dec 25

Government confirms intention to regulate LFAs and reverse PACCAR. Family law sector awaits draft legislation.

Seen something relevant?

If you have seen a news article, court judgment, or parliamentary question that should be listed here, please let us know.

Key terms