$5 million in funding approved to date and 92 firms accredited
Nearly $5 million in funding has flowed into Aotearoa New Zealand family law matters over
the past year as law firms increasingly turn to third-party funding to manage cashflow risk
and improve access to legal services.
Social lender JustFund provides lines of credit for legal fees in separation cases and has
approved almost $5 million in funding to date since launching last year, with a median loan
size is $35,000 and the largest recorded at $350,000.
Lauren Milne, Director of Family Law at JustFund in New Zealand, says the model is
beginning to change how firms approach both client intake and fee recovery.
“Too often, cases stall or firms absorb costs because clients can’t fund matters through to
resolution,” says Milne.
Eligibility is assessed against a client’s expected property settlement, with repayment
aligned to the outcome of the matter.
“For firms, it reduces the need to carry unpaid fees, offer extended payment plans, or write
down work already completed. It’s fundamentally about converting billable work into secured
revenue,” says Milne.
“Our first year of local operations highlights the shift in how family law matters are structured
and paid for, with funding being introduced earlier in the process rather than as a last resort.”
During the past 12 months, JustFund has built a network of 92 accredited partner firms
across New Zealand, with 19 firms added in the latest quarter. Its loan book has grown 36
per cent over the quarter too.
All clients must be referred through an accredited firm, with invoices paid within 24 hours of
approval.
Milne says: “When funding is in place early, lawyers can focus on progressing the matter
rather than managing payment risk.
“We are seeing firms incorporate funding as part of their standard client onboarding, not as
an exception, which this is impacting how they scope matters and progress in practice.”
While third-party funding is well established in commercial litigation, its use in family law has
been more limited. JustFund is New Zealand’s only dedicated family law finance provider.
Borrower data from JustFund suggests the issue spans a wide range of clients. In its first
year, the company funded individuals with incomes ranging from no current income through
to $660,000 per annum, indicating liquidity rather than earnings is often the constraint.
New Zealand recorded 7,887 divorces in 2025, up five per cent on the previous year,
underscoring the volume of matters requiring legal support.
Milne says the early data points to funding becoming a more established part of the family
law landscape.
“As more firms adopt structured funding, it is shifting expectations around how matters are
paid for. Clients are able to proceed with greater confidence, and firms have more certainty
over cashflow from the outset.”
