A soft loan, often referred to as a friendly loan, is a loan provided by family or friends to support individuals during divorce proceedings. Unlike traditional loans, soft loans may have more lenient repayment terms and lower interest rates. 

Yes, soft loans from family and friends are common in divorce proceedings, as they offer financial support to individuals facing legal expenses during this challenging time. They can provide immediate assistance when individuals may not have access to traditional financing options. 

Soft loans can have a significant impact on divorce proceedings, as they may affect the division of assets, financial settlements, and overall financial arrangements between the parties involved. The court may consider these loans when determining each party’s financial position and obligations. 

The court considers various factors when evaluating soft loans from family and friends, including the loan’s terms, documentation, fairness, consistency with financial disclosure, and the relationship dynamics between the parties involved. 

Evidence of a soft loan may include written loan agreements, bank statements showing the transfer of funds, communications discussing the loan arrangement, or testimony from the lender or borrower confirming the loan’s existence and terms. 

The court considers soft loans from family and friends as part of the overall financial picture when determining financial settlements. While they are taken into account, the court evaluates their validity, fairness, and impact on the parties’ financial positions based on the evidence presented. Without such loan agreement in place, the court tends to view soft loans as never to be repaid in the future and so will not always take them into account when deciding a settlement. 

Yes, it’s advisable to seek independent legal advice before obtaining a soft loan. A solicitor can provide guidance on the loan’s implications, documentation requirements, and potential impact on the divorce outcome.