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| Case Studies - Case Studies |
Summary:We advised a client on the rights to her spouse’s pensions on divorce and then built these assets into a comprehensive financial plan which enabled her to achieve her long-term goals. Background:The client was getting divorced from her husband and had sought advice from a family solicitor. As part of the divorce settlement, she was to receive a share of her husband’s sizeable pension schemes. The solicitor was unable to give advice on financial matters and so referred the client to us. Problems/Challenges:In these matters, the Law Society requires solicitors to refer their clients to an independent financial adviser. The solicitor needed us to find a home for the money so that the divorce could be finalised. To be able to provide a professional service to their client, the solicitor needed to be regularly updated at every point of the process so that the pension could fit within the overall divorce settlement. The client needed advice on how best to manage this money since she had previously taken limited involvement in the family financial affairs. Since her life was undergoing a major change, she also needed to examine how the divorce and settlement would impact on her financial security and the future. Our approach:The main driver was to find a home for the pension funds in a short time frame. We worked with the client to agree a strategy for the pension funds, produced research on the most appropriate pension solutions for her needs, and discussed these various options with the client. We managed the process so the client and solicitor had confidence that the pensions were to be transferred to the client’s name in a timely manner. Once this critical process was in motion we sat down with the client to produce a financial life plan. This allowed us to get to know her and work out a future direction for her finances. She set out her dreams to retire at age 60 and provide a lump sum for her children’s education. We produced her financial plan by gathering all the information we needed on her present income and outgoings, assets and liabilities. We then made assumptions as to how these would change over time based on a realistic assessment of her circumstances and how her goals would affect these areas. This enabled us to look into the future and work out whether she would remain on track to hit her goals. As part of this, we assessed her existing assets including her pensions and agreed a strategy to manage the risks of these investments in order to achieve long-term goals. Outcomes and Impact:The client was able to receive the pension money from her former spouse and completely separate her finances from his pensions. This process was handled efficiently and with minimum involvement from the client. We were able to give her confidence in her future financial stability and that she would be able to afford to retire with the lifestyle she required whilst still providing for her children. Continuing Support:Each year we schedule two reviews with the client. The first is to re-evaluate her financial situation and revise her financial plan so that we can take into account any changes to her circumstances and re-assess whether she remains on target to meet her long-term goals. The second meeting reviews her investment portfolio and aims to keep her on track towards her goals while taking the least risk needed to do so. Further information: |
