Financial planning for pensions and divorce

There is significant overlap in the services and advice that lawyers and financial professionals provide; particularly when it comes to divorce and separation.

We work very closely with matrimonial and family lawyers like yourself in order to help your clients achieve the best possible outcomes during a divorce.

This guide has been written and designed to help provide you with a deep understanding of the technical and practical concepts that you may be grappling with on behalf of your clients.

It also articulates how we, as financial professionals, can help you understand:

 

  • The financial implications of divorce
  • The options for your clients’ pensions
  • The principles and implementation of pension sharing
  • Alternative dispute resolution methods
  • The role of the financial planning professional

Why Wealth & Tax?

Here at Wealth & Tax, specific individuals in our financial planning team are members of Resolution, an organisation of 6,500 professionals in England and Wales. 

Members believe in a constructive, non-confrontational approach to family law matters. Resolution also campaigns for improvements to the family justice

How we help lawyers and their clients

If you’re looking to take your service offering to the next level by connecting your clients with complementary professionals, we can help.

By providing your divorce and separation clients with an introduction to a financial planning firm such as Wealth & Tax, you can offer a holistic service that benefits all involved. Specifically, we can help you and your clients:

In relation to pensions
  • Reviewing financial information already gathered, to identify errors or omissions
  • Commenting on the nature and value of each party’s pension rights
  • Finding a ‘fair value’ for final salary schemes
  • Giving an indication of what split would be needed to achieve (for example) equality of income for the parties in retirement
  • Advising the client on which pensions should be retained and which shared to minimise leakage of value
  • Advising on the merits of giving away pension assets as opposed to other assets
  • Helping to find ways to share esoteric schemes (e.g., SIPPs holding commercial property)
  • Liaising with an Actuary on the preparation of a suitable response to queries requiring actuarial input
  • Considering the question of timing – for example, whether applying for pension sharing should be delayed until some point in the future when the pension credit benefits can become payable immediately
  • Considering the merits of internal and external transfers as sharing options for the transferee
  • Advising transferees on the selection of a pension wrapper to act as the receiving scheme for an external transfer
  • Advising transferors on the options for rebuilding their pension rights after divorce within the confines of the Annual Allowance rules
  • Advising clients in receipt of pension shares on setting up their own pension arrangements
  • Project managing the implementation of a pension sharing order within a public sector scheme.
In the wider context of financial planning
  • Providing clients with financial planning advice to ensure that the client embraces their new financial independence and is not daunted by the prospect of it
  • Explaining the implications of various settlement options
  • Assisting clients in drawing up a realistic financial budget or in developing an income plan or long-term cash flow analysis
  • Assisting clients with financial disclosure
  • Valuing endowment policies
  • Providing specialist guidance in relation to investment arrangements
  • Advising on the tax aspects of different forms of current and future income
  • Discussing and ensuring that clients have a full understanding of risk
  • Determining the cost of replacing items under an employee benefits package for the ex-spouse (e.g., life cover, critical illness cover, private medical insurance)
  • Advising as to potential borrowing capabilities and assisting with the funding of costs.

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YOUR INDEPENDENT FINANCIAL ADVISER

Whether you’re local to us (Milton Keynes, Leighton Buzzard, Northampton, Bedford, London) or farther afield, our expert team of financial planning specialists can provide the advice and support you need to take care of your money effectively.

Call us today on 01908 523740 or use the form to request a callback.

The sooner you start planning with us, the sooner you can be living your dreams.

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