DIVORCE
The role of the Financial Planning in Divorce
The role of financial planning has been recognised as an important one by the Law Society, Resolution and SIFA whether the divorce is being dealt with by mediation, collaboration or litigation. Some of the functions of our role as independent financial advisers and planners might include:
- Reviewing financial information already gathered by the divorcing parties or their legal advisers.
- Discussing and ensuring that Clients have a full understanding of the risks associated with various aspects of any financial settlement.
- Assisting Clients in drawing up a realistic financial budget or in developing an income plan or long term cash flow analysis so they know how much they have to live on.
- Valuing endowment policies included in Form E. Valuations would usually be based on the surrender value quoted by the insurance company, but we will be able to ascertain whether an increased value could be obtained from selling the policy on the second-hand market.
- Advising on the tax aspects of different forms of current and future income and financial settlements.
- Explaining the implications of various settlement options.
- Advising as to potential mortgage borrowing capabilities for housing purposes.
- Considering the merits of assigning life policies such as endowments and investment bonds.
- Assessing ‘What if?’ comparisons of alternative financial strategies.
Protection of maintenance payments:
Divorcing spouses who are awarded maintenance will need to guard against the risk of the payer dying or becoming unable through illness or accident to maintain the payments. The necessary protection could be obtained through a life insurance or critical illness policy such as a family income benefit plan, covering the period during which payments have been made. We can assist with the placement and necessary Trust arrangements associated with such policies.
Please do get in touch if you would like to discuss any aspects of Financial Planning either prior to, or as part of the divorce process.
Useful links for children and young people in relation to divorce matters;
