How I Help People Going Through A Divorce
Divorce is becoming increasingly common. COVID and the consequent lockdowns are partly to blame according to the BBC. The impact on a person’s life will vary greatly from one situation to the next. However, for the majority, it is a time of great financial upheaval. Therefore, the services of a professional financial planner can be useful.
Often, when under great emotional stress, we act impulsively or out of character. People choose to bury their heads in the sand. Perhaps telling themselves they will deal with the financial consequences later. Two such cases which crossed my desk last year were Jasmine and Greg (not their real names).
Jasmine contacted me as she needed help with her finances. Her husband had always dealt with financial matters but since their divorce last year she had been trying to manage things on her own. Then she had got stuck. She was running out of money and could not understand why. Over a series of meetings, we were able to understand her spending patterns, identify habits she wanted to break and things she wanted to achieve in the future. She now has a strategy for managing her money more effectively. She told me she feels more confident in managing her finances and has started her financial education with a book I recommended to her.
Another case was Greg. He had lost a significant chunk of his assets after 15 years of marriage. Now in his mid-forties, he needed to repair the financial damage caused by his expensive divorce. He had never been much of a risk taker. However, despite his better judgment, he was looking for get rich quick schemes to recover financially as soon as possible. Greg approached me to ask my opinion of the schemes he was considering. Working with Greg, I was able to show him a lower risk, more certain way of building up his wealth again so that he can live a full and active retirement.
For most people, divorce is a stressful and emotional time. It is also a time when difficult financial decisions need to be made. These decisions have long-lasting effects. In the mid-1990s, I provided presentations to UK solicitors on the financial planning aspects of divorce, particularly around the allocation of pension benefits. Much has changed in the last 25 years. New academic research has been published and laws evolve. What has not changed is the importance of getting the right advice at this pivotal time. If you would like more information on how I can help you or someone you know, please contact me for a confidential discussion.