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Ensure fair and efficient asset division with expert guidance from a financial adviser

We discuss how the input of a professional financial adviser can positively impact financial remedy proceedings as part of the divorce process...


 

All may be fair in love and war, but divorce is a different matter. When a couple faces separation, the issue of financial fairness often becomes a point of hyperfocus.


A financial adviser can therefore play an invaluable role in what becomes a crucial time in a client’s life: their financial remedy proceedings.

 

What are financial remedy proceedings? This term refers to a process during which financial disputes between divorcing couples are settled in court, in the case that no resolution is reached during mediation.

 

The proceedings can be protracted, taking as long as one year to 18 months, as financial assets are divided between parties.

 

In two out of five divorces (40%), people think that they did not receive a fair and equal divorce financially, with one party being favoured. Despite this, just 7% of people engage a financial adviser as part of the divorce process. (Source: Legal & General, 2024)

 

Why work with a professional financial adviser?

 

A professional financial adviser can bring expertise and objectivity to the financial aspects of proceedings, helping parties to navigate a very challenging time and ultimately reach a fair and equitable resolution.

 

In the approach to financial remedy proceedings, advisers undertake a thorough evaluation of all assets, bringing informed valuation to every financial vehicle, from pensions and investments to properties and businesses. They can also be a tremendous ally in assisting their clients to prepare for life post-divorce, providing peace of mind and reassurance regarding future financial health and wellbeing.

 

LIBF-Chartered financial adviser Jenny Loftus comments:

"The interplay between finances and emotions are more pronounced during the divorce process than in virtually any other personal life event. And because stakes feel quite high, making financial decisions can become significantly more challenging. As a financial adviser, my job is to bring clarity, break down complex financial passages into easily understood material, help my client to envision their financial circumstances post-divorce and, finally, support them throughout this transition.”

 

Financial advisers prove beneficial in multiple ways, from the early stages of separation to long after the divorce has been finalised.

 

We’ve listed eight potential benefits, as follows:

 

1.     Asset Evaluation. Financial advisers provide a full financial picture, valuing all assets involved. Because assets are wide-ranging (such as cash, collectibles, properties, investments, pensions and businesses) and valuations complex, they ensure that assets are accurately accounted for during the proceedings.


2.     Understanding Financial Documents. Financial remedy proceedings often involve complicated financial documents. In conjunction with a solicitor, a financial adviser can help interpret these documents, ensuring that the individual fully understands their financial situation and rights.


3.     Tax Implications. Divorce settlements can have significant tax implications. Financial advisers can help individuals understand these implications and develop strategies to minimise taxes on their assets and income.


4.     Mediation Support. If the divorce proceedings involve mediation, financial advisers can provide support to individuals during the mediation process. They can help their clients articulate their financial needs and interests effectively.


5.     Negotiation Support. During negotiations, financial advisers can provide valuable support and advice. They can help individuals understand the financial implications of various settlement options and negotiate for a fair division of assets.


6.     Expert Testimony. In some cases, financial advisers may provide expert testimony in court. They can explain complex financial matters in a clear and understandable way, helping the court make informed decisions about asset division.


7.     Financial Planning. Advisers can help develop a comprehensive financial plan for their post-divorce life. This plan may include budgeting, managing debt, saving for retirement, Inheritance tax planning, thinking about their protection needs and planning for any dependents.


8.     Future Financial Security. Financial advisers can assist in creating a plan for long-term financial security. This may involve setting financial goals, investing assets wisely, and ensuring that adequate provisions are made for retirement and for any dependents.

 

 

Summary

 

When future financial security and wellbeing are of concern, direct access to informed financial analysis and recommendations brings a host of advantages.

 

If you have been advised by a solicitor to seek professional financial advice in the run-up to your financial remedy proceedings and would like to discuss your individual circumstances with a member of our team, please do not hesitate to contact us. We are here to help.


Please call 0161 764 9944 or email contact@financialopts.co.uk for further information.


Tax treatment varies according to individual circumstances and is subject to change. Divorce settlements are not Regulated by the Financial Conduct Authority.



Expert financial advice and support
Financial Adviser Jenny Loftus

Meet the Expert


Financial adviser Jenny Loftus possesses more than 17 years' experience in financial planning and strategic wealth management. She acts as a key point of contact for high-net-worth clients as she spearheads our Family Office service.


Jenny attained the Level 4 Diploma and Certificate in Mortgage and Advice Practice in 2018. A member of our Board since 2021, she achieved Chartered status in 2023.




 

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