Closing the gap: How financial advice levels the playing field in divorce

As a solicitor, you’ve no doubt seen how divorce can expose or exacerbate power imbalances between couples.

If one person is financially savvy and the other isn’t, this could make it more difficult for you to achieve a fair outcome for your client.

In contrast, financial advice could level the playing field, ensuring a more satisfactory settlement for both parties. Read on to find out how this might benefit you and your divorcing clients.

Facilitate full financial disclosure

According to research published by IFA Magazine (22 May 2024), 1 in 4 UK adults admit to hiding assets and wealth from their partner. Moreover, 24% hid £10,000 or more, and men were twice as likely to conceal assets.

This could mean that your female clients may face a greater risk of losing out on wealth they are entitled to during a divorce.

As a financial expert who specialises in divorce, I have an extensive professional network including specialists who can help your clients obtain an accurate valuation of their shared assets.

This could facilitate full financial disclosure from both parties, giving your clients clarity on their financial position and ensuring that you have the necessary information to achieve a fair settlement.

Support efficient and productive negotiations

If there is a discrepancy between your clients’ financial knowledge and that of their ex-spouse or partner, this could lead to misunderstandings that lengthen and complicate negotiations.

On the other hand, working with a financial expert may help your clients understand their financial circumstances and make informed decisions.

For example, I can use cashflow modelling software to show your clients how different settlement scenarios could affect their future finances.

This knowledge and insight could support balanced negotiations and reduce the risk of conflict.

Not only is this likely to make negotiations less stressful for your clients, but it may also allow you to provide more efficient advice and guidance.

Enhance confidence and emotional resilience

Your clients may experience challenging emotions in the wake of a marriage breakdown, including concerns about their financial future.

This might be especially true for your female clients, if they have prioritised caring for their family over pursuing a career.

The 2024 NOW: Pensions gender pensions gap report (January 2024) reveals that the average woman will spend 10 years away from the workforce to raise a family or fulfil other caring responsibilities.

Such career breaks could have a significant effect on your female clients’ earning potential and retirement savings. This may lead to heightened anxiety about settlement negotiations.

I can build your clients’ confidence by explaining complex financial matters, such as pension sharing, and empower them to make decisions based on data rather than emotions. This could make the whole process of reaching a financial settlement more streamlined for everyone involved.

Read more: 3 ways a financial expert can empower your female clients after divorce

Reduce the risk of future disputes

Ensuring that your clients enter negotiations fully informed, confident, and prepared to engage calmly in discussions provides a strong foundation for a satisfactory outcome (for both parties).

If both sides leave the table feeling they have achieved a fair settlement, there is a much lower risk of future disputes arising.

As a result, they may benefit from a clean break – and avoid further expense and stress.

This positive outcome could help you to forge productive, long-term relationships with your clients.

Plan for post-divorce financial independence

A financial expert can provide valuable support to your clients before, during, and after divorce.

Following a separation, there is likely to be a period of financial adjustment. For example, transitioning to a single-income household or coping with changes in childcare costs.

I can help your clients review their budget and create a financial plan that meets their current needs and goals. Working together, we can provide the ongoing holistic support your clients need to cope with any significant life events.

Signposting your divorcing clients to a financial expert could benefit both of you

Some of your clients may worry that their ex-spouse or partner might see them as disloyal for seeking financial advice during their divorce.

If so, you might find it useful to share our blog with them – It’s not disloyal to seek financial advice during divorce. Here’s why.

This article explains how working with a financial expert could lead to a better outcome for both parties.

It may also help you provide a more efficient, streamlined service that supports positive and lasting client relationships.

Get in touch

If you’d like to know more about how we can work together to support your clients before, during, and after divorce, I’d love to hear from you.

Please contact me at lottie@truefinancialdesign.co.uk or call 0330 088 9138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.