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Patrick Mulcare
Director, Head of Family Law
01295 204153
pmulcare@se-law.co.uk

Financial advice on divorce

by Patrick Mulcare | Feb 07, 2017 |
Financial Advisor

Why should I meet with an Independent Financial Advisor if I’m getting divorced?


During divorce proceedings, when tensions can run high and budgets become stretched, engaging the services of a Specialist Financial Advisor can seem like an additional burden.

The role of a lawyer in dealing with divorce, or separation, is to guide a client through the legal maze of forms and procedures in, hopefully, as amicable, cost-effective and rapid way as possible.

That said, lawyers are simply not in a position to provide the sort of specialist financial advice that separating parties may require.

For example, realising capital from a pension, or pensions, may require such advice, as may exploring borrowing capacity, income needs and more.  Whatever the level of assets, the assistance of an Independent Financial Advisor (IFA) can help to unlock the next financial steps to be taken.

How can an Independent Financial Advisor help me through divorce?


Typically an IFA will first discuss your circumstances and get to know your specific requirements.  This is not with the intention of selling a product or bringing any pressure to bear, but rather simply to understand how they can help, and establish a relationship that may last for years to come and should be founded on trust, valued advice and a wealth of information designed to empower the individual concerned.

An IFA can save, or earn, for their client more than they will charge them. Whilst that cost benefit may not always be immediately apparent, family lawyers should be well placed to recommend the services of an IFA at key points in divorce or separation, not only if matters become contested and go to Court, but also in direct negotiations or Mediation, for example.  

What are the main reasons for consulting an Independent Financial Advisor on divorce?


One question that separating couples often ask is “how much do I need for the future?”.  That question can often best be answered by an IFA who will analyse income and outgoings, together with accommodation needs, making a model that can help with long-term financial planning.

Having reviewed an individual’s existing financial arrangements and analysed their future needs, an IFA can feed that information back to a specialist family lawyer, whose negotiating position when dealing with assets on divorce can only be improved by a clear sense of their client’s essential and ideal requirements.

What if I already have a financial advisor?


The best time to involve an IFA is, like involving a family lawyer, as early as possible. The sooner a couple knows the parameters for dealing with their finances, the better able they will be to reach an informed and lasting agreement for the benefit of all concerned.  

Some people getting divorced may already have a financial advisor and, so long as that advice is independent and aimed towards resolving issues arising from the divorce, that can be a great help.

What is the added value of an Independent Financial Advisor accredited by Resolution?

Family Law’s governing body, Resolution (formerly the Solicitors’ Family Law Association), accredits Independent Financial Advisors who pass their stringent exams and meet their standards as professional advisors. When seeking financial advice on separation or divorce, it is worth considering the added value that an IFA who is accredited by Resolution can bring to the table.


This article has been written by Steven Hennessy, a Resolution-accredited IFA, at Myers Davison Ginger, Aylesbury, Bucks, and Patrick Mulcare, a Resolution-accredited specialist family lawyer, at Spratt Endicott​.  For more information about any of the issues raised above, please contact either Steven on 01296 392999 or Patrick on 01295 204153.

Steven Hennessy            

  Steven Hennessy                                                Patrick Mulcare

 

*Disclaimer: While everything has been done to ensure the accuracy of the contents of this article, it is a general guide only. It is not comprehensive and does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.*

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