JustFund, a Sydney-based start-up specializing in financing divorce-related legal fees, has successfully secured a $200 million debt warehouse facility from MA Financial. This funding aims to support individuals facing financial challenges during divorce proceedings, particularly those unable to afford up-front legal fees.
Founded in 2022 by former lawyers Jack O’Donnell and Andy O’Connor, JustFund has already approved over $175 million in credit for more than 2,000 clients. The start-up targets individuals who do not qualify for traditional personal loans or whose assets are tied up in property or frozen during the divorce process. Notably, nearly two-thirds of JustFund’s clients have reported experiencing financial control or domestic violence.
Addressing Financial Barriers in Divorce
Craig Carroll, executive chairman of JustFund, emphasized that divorce is a widespread issue affecting Australians from all walks of life. “Separation affects Australians from all walks of life, including those who appear financially comfortable on paper, but those assets are tied up in property or frozen by virtue of the legal process,” he stated.
Rather than evaluating clients based on income or credit scores, JustFund employs in-house family lawyers to assess each case. This approach allows them to offer credit lines based on the anticipated property settlement. Clients repay the loan, along with associated fees and interest, once their settlements are finalized.
JustFund charges an interest rate of 9.85 percent on the drawn amount, alongside an assessment fee beginning at $560 for credit lines up to $15,000. Additionally, there is a monthly fee of $49 to cover the costs of consultations with in-house lawyers.
Recent Funding Milestones
In November 2023, JustFund also secured a $75 million senior debt facility from a private credit provider, along with $11 million in mezzanine funding from various family offices. Carroll noted that this new funding is crucial as the company has outgrown its prior debt facilities, stating, “Debt is essentially the lifeblood that allows us to provide a solution to clients.”
The recent $200 million debt facility was arranged through MA Financial’s $2.5 billion MA Priority Income Fund. Guy Kaufman, executive director of MA Financial’s global credit solutions team, highlighted the appeal of JustFund’s unique loan structure. “The nature of the underlying loans is very unique, and that’s why the platform is growing really well,” Kaufman explained, noting that individual loans are typically small, usually under $100,000.
As JustFund continues to grow, it remains committed to providing essential support to individuals navigating the complexities of divorce, addressing both financial and emotional challenges along the way.
