Advisers crucial in divorce planning

divorce/financial-planning/financial-advisers/

16 October 2018
| By Mike |
image
image
expand image

Financial advisers need to get involved earlier in clients’ divorce proceedings, according to Cardena Private Wealth director, Iain Reid.

According to Reid, while obtaining sound legal advice is imperative in a divorce situation, it is also crucial to obtain financial advice to help decide as soon as possible what mix of assets will best secure your financial future.

“Obtaining financial advice early in the asset settlement negotiations is a smart move,” he said.

Reid said a financial adviser could help focus on setting up the newly-separated individual for the future and tackling the longer-term money issues – including preservation of wealth strategies, and meeting retirement and lifestyle aspirations.

He said it was also important to understand what happened after the financial settlement when each party had received their share of the asset pool.

“This is where some careful planning and good financial advice can help enormously by providing help in many areas including:

  • Budgeting and cash flow management and ensuring there is enough income to fund a desired lifestyle.
  • Assessing how best to structure the financial settlement to provide for longer term needs.
  • Advice on any share of a superannuation fund that may have been received on settlement.
  • Investment advice with a focus on capital preservation and generating inflation-adjusted returns so longer-term goals can be achieved.
  • Assessing whether setting up an education trust is worthwhile to fund the children’s school fees.
  • Help with updating estate plans and any personal risk insurances.

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND