How KHK is Leveling the Playing Field in High-Conflict Divorce Cases
In divorce, a wealthy spouse may attempt to use their financial advantage to overwhelm the other party with a barrage of motions and legal proceedings, a tactic often called a “litigate-to-poverty” strategy. Fortunately, legal tools exist to prevent this from happening and ensure a fair fight for both parties.
A Recent Victory for Our Firm
KHK recently used this powerful tool to secure a significant victory for a client. We recently got a $24,000 initial fee award for a client who earns $70,000 a year, against his millionaire spouse who controls all the assets. This amount is subject to increase throughout this case. This fee award allowed our client to pay us to fight their case by charging her, ensuring he can now afford to pursue his case effectively. This outcome is a testament to our commitment to ensuring that every client, regardless of their financial situation, has the chance to get a fair result.
Unfortunately, this happens too often. One such case that tackled the issue of litigating till poverty is In re Marriage of Earlywine. In this case, a financially struggling wife was able to compel her husband’s lawyer to return fees that had already been paid. The husband’s family had loaned him $8,750 for legal fees, which he paid to his attorney as an advanced payment retainer. The central legal issue was the conflict between the “leveling of the playing field” provisions of the Illinois Marriage and Dissolution of Marriage Act (IMDMA) and the Illinois Professional Conduct Rule that permits advanced payment retainers. The Illinois Supreme Court ruled unanimously that public policy requires divorcing spouses to share the cost of a divorce to ensure equitable access to legal representation. The court found that because the husband had a cash loan that gave him an advantage over his wife, Section 501(c-1)(3) of the Act required them to share the funds for legal fees. This landmark decision highlights the court’s willingness to prevent one party from using financial power to gain an unfair advantage.
You can learn more from the Earlywine case here: https://www.isba.org/ibj/2013/11/lawpulse/divorcingspousesmustsharethecostofa.
A Powerful Remedy: Section 501(c-1) of the IMDMA
When a client faces an opponent who is using their superior financial position to prolong litigation, a knowledgeable attorney can use Section 501(c-1) of the IMDMA (750 ILCS 5/501(c-1)) as a powerful remedy. This provision, often referred to as “interim fees” or “interim attorney’s fees,” allows the court to order one party to pay for the other’s legal costs during the divorce proceedings. This is crucial when one spouse controls all the assets, leaving the other unable to afford legal representation.
By invoking this statute, a skilled lawyer can level the financial playing field and ensure that their client has the resources to fight for a just and equitable outcome. It allows the court to award fees based on the needs of one party and the ability to pay of the other, directly countering the “litigate-to-poverty” strategy. For more info on this, read here: https://law.justia.com/cases/illinois/supreme-court/2021/126192.html.
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