Navigating Divorce – from a Family Law & Financial Planning Perspective

When clients are navigating separation or divorce, the legal process is clearly an integral part of the journey to ensure that both parties achieve an outcome which is appropriate for both sides. This process can be daunting for clients in so many areas. Alongside the emotional impact of this process, there are often significant financial decisions to be made, which are often crucial to a client’s long-term financial security and future lifestyle.

This is where a Family Lawyer working collaboratively with a Financial Planner can add considerable value for a client, both during and/or once a legal resolution has been agreed.
While a Family Lawyer focuses on achieving a fair legal settlement, a Financial Planner helps clients understand what those outcomes mean in practical financial terms for their future. By working together, we can ensure that decisions made during the legal process align with the client’s long term financial wellbeing. This is especially important where the client may not have had experience of dealing with family finances during the marriage, and this is a new area they need to navigate.

During the divorce process, from a Financial Planning perspective the financial planner can assist with:

• Understanding cashflow needs – helping clients organise and understand their income & expenditure now and for the future by drawing up a budget to assist in the negotiations on potential spousal maintenance discussions. This is frequently where people have little or no clarity during negotiations and failure to have a clear indication of what current and future income needs are likely to be may impact a settlement.
• Understanding the financial landscape – helping clients organise and understand their assets & liabilities, savings, investments & pensions to ensure they have clarity during negotiations.
• Pensions – often one of the most valuable assets in a marriage, yet they can also be difficult to comprehend. A financial planner can help clients understand a pension sharing order and assist with implementing the transfer into their name.
For the family lawyer’s perspective, having a financial planner involved at an early stage of the negotiations will assist in a collaborative approach to ensure that the client’s needs are considered and met within any settlement discussions. The financial planner will also be able to consider the impact of any proposal put forward and provide clear guidance on what is likely to be required to assist the counter negotiations. The clear guidance and planning places the client on a clear path in which they can objectively understand the impact of any offers on their needs now and in the future.

Once a divorce agreement has been reached, clients often need guidance on how to structure their finances moving forward, whether that involves investing, budgeting for a new household, retirement planning or protecting their future financial security. This is where the financial planner can assist to make the best of any settlement.
For many clients, divorce represents a significant turning point. Having both legal and financial expertise working together provides reassurance that decisions are not only legally sound, but also financially sustainable for the years ahead.

A collaborative approach between a Family Lawyer and Financial Planner helps clients move forward with greater clarity, confidence and stability. Ensuring that advice is taken from both experts at an early stage of the proceedings is beneficial to a client in their negotiations, and beyond.

For more information please contact -
Emma Rothstein – Partner and Head of Family department - Pearson Hards LLP at erothstein@pearsonhards.co.uk or 0208 949 9500
Lisa Lloyd-Franks - Financial Planner – Bespoke Advice at lisalloyd-franks@bespoke-advice.com or 07966 172540

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