Frequently, family lawyers will refer their client to an IFA once a divorce settlement has been finalised; the sooner the client is referred, the better it is for everyone involved.
There are a number of areas our advisers can assist a family lawyer with in a divorce settlement. Listed below are a few of those areas where we can work alongside the lawyer.
Gathering and assessing financial information
A financial adviser can assist in gathering all relevant financial information required, as this is a natural part of the advice process they would carry out with their own clients. Areas they would cover are:
- Income & Expenditure – what will the impact of the divorce have?
- Savings and Investments – are they joint and therefore need to be split?
- Pension holdings – do they need to be split or transferred?
- Protection cover – are they joint and therefore need replacing?
- Mortgage – is it in joint names and need to be assessed?
- Assets – what is their value and do they need to be split?
Cash Flow Forecasting
It is important for the client to know as soon as possible the financial impact the divorce settlement will have on them. The IFA will be able to put a forecast in place to project what this could look like.
Who keeps the house, the pension, or other assets? The IFA – based on the financial information they have gathered – will be able to offer advice and options based on the client’s goals, priorities and objectives.
Dealing with financial products
Whatever needs to be done with pensions, protection products, savings and investments, mortgages or other assets – as part of the divorce settlement – the IFA will be able to advise on the best way to proceed and then can carry out the work which needs to be done to make the changes happen.
Dealing properly with a client’s financial situation as a result of a divorce is crucial as it can have a major impact on their lifestyle both now and in the future. It is vital they understand all the legal and financial options presented to them, and are able to make informed decisions as soon as possible.
If you would like to find out how Money Advice & Planning can assist with divorce settlements or any other financial issues for any clients, please visit us at www.mapfinances.co.uk and use the contact form. Alternatively, call your local MAP adviser at a time which suits you.
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