The 6 Best Divorce Loan Providers in Canada

By Arthur Dubois | Published on 20 Sep 2023

Man holding puzzle piece with house and family.

Going through a divorce can be an emotionally and financially draining experience. As you navigate the divorce process, you may find yourself in need of financial assistance to cover legal fees, living expenses, or other unexpected costs that arise along the way. In such situations, a divorce loan can provide a much-needed lifeline. In this article, we will discuss the top 6 divorce loan providers in Canada and guide you through the process of choosing the best one for your needs.

What is a Divorce Loan? 

A divorce loan is a specialized financial instrument specifically designed to assist individuals in covering the myriad expenses associated with the divorce process. These costs often encompass legal fees, attorney charges, court expenses, and other ancillary costs like mediation services. Generally speaking, divorce loans can be classified into two primary categories: unsecured personal loans and family law or settlement loans. Each type comes with its own set of terms, benefits, and considerations.

Unsecured Personal Loans for Divorce

The first category, unsecured personal loans, are frequently offered by online lending platforms as well as traditional financial institutions like banks. These loans are termed “unsecured” because they do not necessitate the borrower to pledge any form of collateral, such as real estate or a vehicle, to secure the loan. Given the lack of collateral, these loans often come with relatively high-interest rates to compensate the lender for the additional risk involved.

In terms of repayment, these are typically structured as installment loans. The borrower is required to make scheduled payments over a predetermined period, which can vary from as short as six months to as long as five years. Loan amounts for this category can range widely based on the borrower’s financial profile and needs, but they commonly start from a few thousand dollars and can go up to $50,000 or more.

Divorce Settlement Loans

The second category of divorce loans, often referred to as divorce settlement loans (or even family law loans), are provided by specialized legal lenders. These loans are specifically designed for individuals who can credibly demonstrate to the lender that they anticipate receiving a financial settlement from their divorce proceedings. Unlike unsecured personal loans, these family law loans offer a unique set of advantages.

One significant advantage is the absence of a requirement for regular installment payments during the course of the divorce process. Repayment is generally due as a lump sum, along with accrued interest, upon the finalization of the divorce settlement. Additionally, these specialized loans often offer the possibility of higher loan amounts than what one might qualify for with traditional personal loans. Specialized legal lenders have the expertise to assess the likely outcome of a divorce case, enabling them to offer larger loan amounts even to borrowers with lower incomes, as they consider the anticipated settlement as a form of assurance for repayment.

How to Choose a Divorce Loan Provider

When considering different divorce loan providers, it’s important to evaluate them based on several key criteria. These criteria will help you determine which provider offers the best terms, service, and overall value for your specific situation.

One of the most critical factors to consider when choosing a divorce loan provider is the interest rate and loan terms they offer. Compare the rates and terms of different providers to find one that offers competitive rates and flexible repayment options that fit within your budget.

Interest rates can vary significantly between providers, so it’s important to do your research and find the best rates available. Lower interest rates can save you a significant amount of money over the life of the loan.

Moreover, if you have other avenues for financial support like a Home Equity Line of Credit (HELOC) or any other low-interest loan that you can comfortably repay, it may be wise to consider these alternatives. The aim is to select the most suitable loan that aligns not just with your immediate needs but also with your long-term financial stability.

The 3 Best Providers of Unsecured Personal Loans for Divorce

When seeking unsecured personal loans for divorce-related expenses, you’ll find a wide variety of options. Yet, not all lenders offer the same quality of service or terms. We’ve narrowed down a curated list of the top three providers offering personal loans that can be used by those going through a divorce.


Fairstone is an ideal solution for Canadians undergoing divorce and requiring extra financial support. Operating across all provinces in Canada, they offer unsecured personal loans ranging from $500 to $25,000, with a hassle-free online application process that can result in funds deposited in as little as 24 hours. Fairstone’s standout features include flexible repayment options, no application fees, and no pre-payment penalties, making them a dependable choice during challenging times like divorce when quick and convenient access to additional funds is crucial.

Magical Credit

Magical Credit emerges as an invaluable resource for Canadians navigating divorce and requiring extra financial support, offering personal loans ranging from $1,500 to $20,000. Their comprehensive coverage spans every Canadian province, except for Manitoba, Quebec, and Saskatchewan, ensuring widespread accessibility. What sets Magical Credit apart is their swift approval process, typically providing a decision within 24 hours, alleviating the financial uncertainties of divorce. Once approved, funds are promptly deposited directly into your bank account, offering immediate relief during a challenging period. With their efficiency and nationwide reach, Magical Credit is a trusted ally for Canadians seeking financial stability amid divorce.

Spring Financial

Spring Financial stands as a reliable choice for Canadians undergoing divorce and in need of additional funds. They offer a versatile range of personal loans, spanning from $500 to $35,000, with competitive interest rates starting at 9.99%. Catering to residents of Ontario, Alberta, and British Columbia, Spring Financial demonstrates a localized understanding of the unique financial challenges faced in these regions. Their commitment to assisting individuals during this challenging life transition sets them apart, providing a lifeline of stability amidst the turbulence of divorce.

The 3 Best Providers of Divorce Settlement Loans

​​The financial intricacies of divorce can be daunting, and selecting a reliable provider for a divorce settlement loan is a pivotal decision. To ease this process, we’ve identified the top three providers in Canada. These standout lenders offer optimal solutions tailored to meet your financial needs during a difficult period.

BridgePoint Financial

BridgePoint Financial, a trusted provider of divorce settlement loans for Canadians since 2002, has offered over $250 million in financial support to thousands of individuals. They provide a lifeline by offering advances on divorce settlements, helping cover legal fees, financial obligations, and personal expenses, enabling individuals to face divorce proceedings confidently. Notably, BridgePoint’s repayment policy is uniquely flexible, as repayment is only required upon settlement, regardless of the time it takes. What sets BridgePoint apart is their accessibility; they don’t perform credit checks or require proof of income, ensuring that their crucial support is available to all Canadians in every province during the challenging times of divorce.

Easy Legal Finance stands out as an excellent provider of divorce settlement loans for Canadians undergoing divorce proceedings. With a minimum loan amount of $5,000 and no maximum limit, they offer financial flexibility. What sets them apart is the versatility in fund utilization, enabling borrowers to cover lawyers’ fees, disbursements, and everyday expenses. Operating in Ontario and Alberta, they cater to a broad audience. Most notably, Easy Legal Finance requires no payments until the end of the three-year loan term or the conclusion of the divorce proceedings, demonstrating their commitment to easing the financial burden of divorcees and making them a dependable choice for those in need of additional funds during divorce.

Nudorra Capital

Nudorra Capital shines as a top provider of divorce settlement loans for Canadians across British Columbia, Alberta, Ontario, New Brunswick, PEI, Nova Scotia, and Newfoundland. Their standout feature is their commitment to clients, as they charge no upfront fees, only requiring repayment when the divorce is settled, thus alleviating financial stress during this challenging time. With a straightforward online application process, approval is swift, and funds can be received within 24 hours, offering vital financial support precisely when needed. Nudorra Capital’s dedication to easing the burden of divorce-related expenses makes them a reliable partner for Canadians seeking financial assistance during divorce proceedings.

How to Apply for a Unsecured Personal Loans for Divorce

The initial step to get divorce loan through an online lender is usually the completion of an online loan application. Most lenders have made this user-friendly, enabling you to complete the form within minutes. Once the application is submitted, it generally triggers a review by the lender’s loan officers or customer service representatives. They may reach out to you for further clarification or to obtain additional information needed to process your application.

Unlike divorce settlement loans, an unsecured personal loan requires a credit check. Lenders often assess your creditworthiness through your credit score and history. This is an essential component in determining both your eligibility for the loan and the interest rates that will be applied.

Once all the necessary documentation is in, you’ll get an answer from the lender. If you receive loan approval, the final step involves signing a loan agreement that outlines the terms and conditions, such as the loan amount, interest rate, and repayment schedule. Funds are then transferred to your account, enabling you to use them as you navigate through the complexities of divorce. Keep in mind that terms and conditions, as well as approval criteria, may differ from lender to lender. 

How to Apply for a Divorce Settlement Loan

Navigating the complexities of divorce is challenging enough without having to worry about the financial aspects. One way to ease this financial burden is through a divorce settlement loan. Here’s what to generally expect when applying for this specialized form of financing.

The process usually starts with an online application. Lenders aim to simplify this step to encourage a smooth start to the loan process. Once submitted, a client service representative will contact you to discuss your specific needs and gather any additional details required for loan approval. At this point, with your authorization, the lender will liaise with your lawyer to gather essential legal information.

An interesting facet of these loans is that many providers specializing in divorce settlement lending typically do not check your credit score. They are more focused on the details of your divorce case, such as the assets at stake and the potential for a settlement, as these factors offer a more accurate picture of the loan’s risk and feasibility.

Next, your lawyer will need to submit all necessary documents and information relating to your divorce. This could range from details about shared assets and debts to anticipated settlement figures, all of which influence the loan’s terms.

Once all the required information is compiled, a specialized loan adjudicator within the lending company takes over. They conduct an in-depth review, taking into account the legal documentation, the regulations that govern divorce in your jurisdiction, and other factors like their own expertise in family law and financial planning. This step ensures that the loan solution identified is aligned with your specific financial and legal circumstances.

Finally, upon loan approval, you and your attorney will sign the formal loan agreement. The funds will then be transferred either to your designated financial institution for personal expenses or directly to your attorney for legal fees.

The Bottom Line

In Canada, divorce loans offer critical financial support for those navigating the intricate and often costly process of divorce. While options range from unsecured personal loans with fixed repayment terms to specialized divorce settlement loans that focus on the likelihood of a divorce settlement rather than creditworthiness, choosing the right loan and lender is essential. The interest rates, terms, and overall suitability should guide your choice. Divorce loans can be invaluable financial tools when managed wisely, but they come with inherent risks; hence, it’s crucial to borrow only what you need and understand the repayment obligations to minimize any long-term financial impact.

Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications