In this article, we provide an insight into Legal Services Payment Orders and answer some common questions.
What is a Legal Services Payment Order (LSPO)?
A LPSO is a court order made within divorce and/or financial remedy proceedings that requires one party to pay the other’s legal costs, with a view to achieving a “level playing field” in terms of legal representation.
Can I apply for a LSPO?
These orders are available to married couples or civil partners engaged in divorce or financial remedy proceedings.
Careful consideration must be given before making a LSPO application. Evidence that you have explored and exhausted alternative funding options for your legal costs must be provided when making the application, including:
- That you do not have sufficient assets or income to fund legal representation
- You are unable to obtain loans, such as litigation loans, credit cards and bank loans
- Your solicitor is not prepared to enter into an agreement providing for their fees to be paid at the conclusion of your case
- You are not eligible for legal aid
What does the Court take into account when considering an LSPO application?
There will be a hearing at which a Judge will consider whether it is appropriate to grant the LSPO application. Factors for a Judge to consider include:
- Both parties’ current income and ability to increase their earnings
- Conduct, in particular whether reasonable attempts have been made to resolve the issue outside of Court and/or the applying party has caused unnecessary cost or delay
- The financial needs and obligations of both parties, and in particular the financial effect of any LSPO on the paying party
If a LSPO is made, how do the payments work?
LSPO payments can include a one-off payment and/or payment by instalments to cover a particular duration or the entirety of the proceedings.
Payments under a LSPO are usually made directly to the applying party’s solicitor.
If I am unable to obtain a LSPO, what alternative funding options are available to me?
- You may be eligible for litigation loans, credit cards or bank loans
- You may be able to borrow money from friends and family
- Your spouse / civil partner may agree to cover your fees, and this could then be taken into account in any final financial settlement
- Some solicitors may agree to defer payment of their costs until the conclusion of your case
How can we help?
Our team of solicitors are experienced in dealing with and advising on LSPO applications. We can also direct you to alternative funding providers if need be.
Please do not hesitate to contact us, using the links below, to arrange an initial appointment to discuss your case further.
