4 compelling reasons why divorce solicitors need to work with a financial expert

Find out 4 ways divorce solicitors could benefit from working closely with a financial expert. Together, you could better support the unique needs of your clients

Managing the legalities and finances of divorce can be complex, especially for wealthy individuals who may have extensive assets to divide.

However, while most people use a solicitor to navigate the legal aspects of divorce, research by Legal & General (15 July 2024), has revealed that only 7% of adults in the UK take professional financial advice during a separation.

A financial expert could help your divorcing clients considerably, not only with the division of assets during their divorce but also with long-term planning following the final settlement.

Indeed, divorce solicitors and financial experts offer different and complementary skill sets and may not naturally cross paths. But forming a close relationship could allow the divorce process to run more smoothly and ensure that each client receives the expert, bespoke support they need.

As a divorce expert with a partner business in regulated financial planning, I can help your clients by removing financial uncertainty and supporting them to establish what they need from a settlement. This understanding is a crucial foundation for negotiations about a suitable financial outcome.

What’s more, I can provide key education to you as a legal professional, empowering you with the knowledge you need to support your clients further.

Read on to discover four further compelling reasons to work with a financial expert as a solicitor supporting divorcing clients.

1. To remove uncertainty by reviewing and valuing shared assets

If your clients are uncertain about their shared finances, this could make them anxious about starting the process of separation. Indeed, FTAdviser (2 January 2024), has reported that financial concerns delay almost 20% of divorces.

So, a key starting point for your clients or prospective clients is to gain an understanding of what they own and how much these assets are worth.

This might not be straightforward, especially if your clients have a number of high-value assets. What’s more, some of your clients, especially if they are women, may not have been heavily involved in their shared finances during their marriage. As a result, reviewing and valuing assets might feel overwhelming.

A financial expert can help your clients avoid the pitfall of under- or over-estimating assets, which could lead to an unfair settlement. They can ensure that all shared assets are accurately valued by the relevant experts, such as financial accountants and business valuers. As a result, you will be able to begin working with your client with the confidence that you have all the necessary information to hand from the start.

2. To help your clients understand their current and future financial needs

Gaining a clear overview of shared assets is an important first step towards a fair financial settlement. But your clients also need to fully understand their current and future financial needs before they can make an informed decision.

A financial expert with a regulated business can conduct a detailed analysis of your clients’ current income, expenses, assets, and liabilities to help them understand their immediate needs. This might include establishing how much income they need to maintain their standard of living and remain in the family home, for example.

Additionally, a financial expert can use cashflow modelling to provide a clear picture of your clients’ future needs, such as their prospective retirement income, inheritance plans, and later-life care needs.

By creating a detailed list of financial short-, medium-, and long-term needs and goals, an expert can help your clients clarify what they want to achieve from their settlement to ensure their future financial security and that of any dependants.

Working together, we can build your clients’ confidence and knowledge around their finances and ensure that you have the insight you need to move negotiations forward.

3. To support efficient communication about different settlement options

The range of potential settlement options could be overwhelming to your divorcing clients, who may be nervous about choosing the “right” option.

Indeed, your clients might find it difficult to envision the potential long-term implications of different outcomes.

A financial expert can help by using cashflow modelling to show your clients what potential settlement scenarios look like and how well each one meets their needs. Together, we will be able to identify any shortfalls and create a financial plan for addressing these.

I have years of experience supporting divorcing clients and understand that this can be a challenging time. By working with me throughout the divorce process, your clients will receive all the information they need – explained in simple, jargon-free terms – to feel confident in making key decisions about their financial future.

As a result, you could benefit from improved communication with your clients, who may be better placed to explain their needs and assess the options available to them.

4. Ongoing support that helps both you and your clients feel empowered

As a financial expert, I can support your clients at every stage of the divorce process.

What’s more, I can boost your financial knowledge, enabling you to more accurately identify where your clients could benefit from bespoke advice.

Forming this network of support ensures that you and your clients understand the available options every step of the way.

By working together, financial experts and divorce solicitors can help reduce the complexities of reaching a financial settlement, making the whole process more streamlined and efficient for everyone involved.

Get in touch

If you’d like to learn more about how we could work together to support your divorcing clients, please email me at lottie@truefinancialdesign.co.uk or call 07824 554288.

I am happy to discuss cases with solicitors first, before you refer your clients to me, or you can contact me by email and CC your client accordingly. I am happy to accommodate whatever mode of communication works best for you and your clients.

Please note

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

The Financial Conduct Authority does not regulate tax planning, estate planning, or cashflow modelling.