Advisers crucial in divorce planning
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.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
