Divorce Lending. A New Industry?

Stacey Napp went through an 8 year divorce battle. The process of paying for her defense within the battle was funded through personal loans from her family and friends. She walked away from the battle achieving the settlement she wanted and a new business idea. She started Balance Point, a divorce lending company.

The company is about a year old and according to "Taking Sides in a Divorce, Chasing Profit" by Binyamin Appelbaum, is already funded from investors and has already lent out "$2 million to 10 women seeking divorces". This is a new company venturing within the world of legal lending. It has been able to receive support due to being based in Los Angeles, which has a lot of expensive divorce battles.
Her purpose: the lending provides the client with an even battleground as legal fees can become expensive forcing the client to not fight as long as the other (former) spouse. The audience are "people with marital assets between $2 million and $15 million" and those who wish to reach an end to the battle. For proft, Balance Point does not charge a fee but takes a percentage of the settlement.

I just love the way in which this company has been created. The use of experience as an appeal is personal and will seem endearing to prospective clients. According to Appelbaum, unequal legal representation in divorces is very common. It is not as if the company is feeding divorce but providing an obvious solution to a common problem. The means of profit through percentage of settlement as opposed to fees means clients are not stuck with a lot of fees and the company stands to profit much from high profiled divorces. The caveat will be clients who do not go forward with divorces, long divorces, and small settlements. The company has yet to make profit but Napp should be commended for turning a personal experience with a common problem into a business. Appelbaum's article left me wondering if legal lending is a new industry ready to emerge or a hidden one not given much attention.

note: I'm not trying to make a point about divorce but about the business.