Two women have come forward with accounts of accumulating over £1 million in debt following their divorces, attributing their financial distress to litigation loans recommended by their solicitors. Shelley Kavanagh and Rosie Heys are now campaigning for greater regulation of these financial products, which they argue disproportionately affect women navigating the legal system after marital breakdown.
Kavanagh, who was married to a stockbroker and lived in a £5.5 million mansion, found herself facing £360,000 in debt from a litigation loan after her divorce proceedings began in 2015. The loan, secured against the marital home with an 18% annual interest rate, was taken out on her solicitor's advice to cover legal costs. By the time the property was sold in 2021, six years after she filed for divorce, the debt had consumed almost all of her equity. Her husband also had a substantial litigation loan, bringing their combined loan debt from the house sale to over £800,000.
"The risks weren't explained to me, nor alternatives such as a bank loan or repayment plan suggested, presumably because lawyers can’t make money from them," Kavanagh stated. She believes her solicitor exploited her vulnerability, as the loan was paid directly into the law firm's bank account, effectively giving them unchecked authority over her spending on legal fees.
Kavanagh's situation led to her credit rating being destroyed, making it impossible to rent accommodation and forcing her to move in with her father. This separation from her three children, then aged 17, 15, and 12, caused significant distress. "I was bereft without my children and they without me," she recounted, adding that she contemplated suicide due to the separation and financial hardship.
Rosie Heys, who filed for divorce in 2014, also found herself in severe debt. Her initial £100,000 litigation loan, taken out on her lawyer's advice, ballooned to £950,000 by the time her marital home in Fulham was sold last year. The debt accrued at a rate of at least £600 per day. Heys reported that her solicitor received a payment from the lender for each loan sold and charged significant administrative fees.
"My solicitor instructed me not to talk to him or let him see the children... advised against mediation and was adamant that I needed a litigation loan, pursuing me with daily phone calls like a double-glazing salesmen," Heys said. She was advised she might lose her children if she did not comply. After changing solicitors, she was advised to take out another loan of £200,000. The cumulative interest, charges, and legal costs associated with her loans meant that by the time her house was sold for £1.35 million, her litigation loan debt had more than doubled.
Heys eventually secured a government debt moratorium, but faced attempts by the lender to have her removed from it, leading to a suicide attempt and psychiatric watch. A pro bono barrister eventually negotiated a settlement, reducing her debt to £750,000. She also had to buy out her husband's share of the remaining mortgage, raising funds from friends and family. "These litigation loans stole a decade of my life—the years from age 50 to 60 are a blank during which the only escape I could see was killing myself," Heys stated.
Following complaints, the Financial Ombudsman ordered Novitas, the lender used by both women (and later acquired by Close Brothers Group plc), to repay Heys £7,000 in interest for failing to provide statements and a further £50,000 in interest and charges for inadequate affordability checks. Novitas ceased lending to new customers in 2021.
The issue of litigation funding has grown in prominence since legal aid cuts. The Civil Justice Council published a report in June 2025 recommending regulation, and the government announced its intention to change the law around litigation funding agreements (LFAs) in December. Former MP Seema Kennedy, executive director of the campaign group Fair Civil Justice, emphasized the need for "Clear cost disclosures, proper affordability checks and effective regulatory oversight are urgently needed to stop access to justice becoming a route into financial ruin."
Kavanagh and Heys co-founded the campaign Divorce Without Debt after meeting online. Their combined debt from litigation loans amounted to £1.3 million. "My abiding feeling now is one of sheer rage that the lawyers who caused this have walked away with no consequences and a colossal increase in their wealth," Heys concluded.
Despite the financial and emotional toll, Kavanagh is rebuilding her life and her relationships with her children. She stated, "A part of me died during those years apart—I’ve never been the same person since."