Sears Tooth Agreement

Before agreeing to a sears tooth agreement, a careful discussion is required with your legal advisor. You will need to carefully confirm your predicted settlement amount and document evidence of this.

You will therefore need to note down the assets and finances which will be considered during your divorce settlement. Valuation will need to be placed and obtained for the assets in question. An assessment can then be made of the assets and settlement which you are likely to secure in a financial settlement, including the parties’ income and wider financial resources.

Once you have a valuation on your likely settlement you will need to consider which of the assets are liquid and easily realisable. This figure will need to cover the potential costs associated with your financial settlements and the related risks.

Family lawyers are unlikely to enter into a sears tooth agreement if the expected settlement funds do not arise, as there are payment risks for them and they may not recover full payment for their services.

Once the costs and the terms of the sears tooth agreement has been agreed, the deed of retainer and assignment needs to be drafted to secure the legal fees. Independent legal advice will then be needed, and the deed must be witnessed. Once the deed of retainer and assignment is signed and witnessed it will need to be submitted to the court. Once the deed is accepted by the court it becomes a legally binding contract. The signed deed will also need to be sent to your partner or their representatives.

A sears tooth agreement is not the only funding option available to a separating spouse. In divorce and other family disputes, a separating wife who is unable to meet her legal costs has many options available, some of which are:

• Borrowing money from family and friends – The benefit of this option is that these people may not charge you interest. However, will they be able to provide you with the large sums of funds needed to cover your legal costs? Sometimes borrowing money from friends and family may cause a drift in relationship if moneys cannot be returned in a timely manner.
• Bank loans or credit cards- this is often a common solution to financial issues. A partner who is unable to meet ends can often rely on bank loans and credit cards. This again can be a quick fix to financial issues when funding your divorce matter. However, the disadvantage of this funding is that it attracts interest. You may end up paying large amounts of interest to cover your loan.
• Legal services order payment – This option is whereby you make an application to the court under section 22ZA of the Matrimonial Causes Act 1973 to request your higher-income spouse to make payments for your legal fees, although there may be costs orders if the application fails.
• Maintenance Pending Suit – This applies where a spouse financially depends on the other spouse. An application is made to the court for the financially stronger spouse to pay for maintenance. Quite often such payments can be used to fund legal costs.
• litigation loans – Specialist lenders now offer this type of funding for people going through divorce, and it can be a less risky alternative to a Sears Tooth Agreement because it allows clients to access money for legal fees without placing the same financial burden on the law firm. Again this payment will be deducted from the divorce settlement. However this sort of funding attracts a strict criteria as the lender will need to be certain that you will succeed and will obtain a settlement form which payment can be made.

Sears Tooth agreement may not be accepted by all family lawyers. The reason for this is the significant risks it creates for both the client and the legal representative. As well as paying for your representatives costs, you will also need to pay for legal disbursements. In divorce financial matters, arising from the end of a marriage, these can range from the barrister’s fees, court application fees to fees of surveyors and forensic investigators. All this could amount to a significant legal bill.

Family Lawyers need to carefully assess the individual circumstances of the case. A sears tooth agreement is usually only entered into if your legal representatives believe your prospects of success are great. They will consider the value of the financial assets and finances at stake and predict what you are likely to receive. Based on this they will be able to consider whether what you are entitled to could be used to pay their fees. The agreement must also be fair to both parties and workable in light of the expected settlement. You should consult a family lawyer on whether this funding arrangement is suitable in your circumstances.

At Kabir Family Law we currently do not offer sears tooth agreements. However, we are able to consider other alternative funding options which may be best suited to your needs.