If you are facing a divorce or separation and you or your spouse hold significant assets, it may be an advantage to work with a wealth manager when dealing with the financial aspects of your situation.
We take a look at the role of wealth managers in high-net-worth divorce and the benefits of having advice from a financial expert as well as an experienced divorce solicitor.
What is Wealth Management?
Wealth management is a financial service aimed at managing assets in the most effective way possible. Some of the considerations that are involved in managing wealth include:
- Tax efficiency
- Protecting assets and limiting risk in the way that is right for your situation
- Investing in the right areas to support your aims for the future
- Financial planning in respect of spending, saving and investing, taking into account likely future events such as educating children and retirement
- Estate planning allows wealth to be passed on to the next generation in the most efficient way when the time comes
What is a Wealth Manager?
A wealth manager’s role is to advise on protecting assets and ensure they are managed in the right way for your situation. For example, they will be able to recommend whether you should aim for a lower level of risk or a short-term investment to make the best use of your funds.
In negotiating a financial settlement on a high-net-worth divorce, they will be able to work with you to establish the best way of achieving stability and security for the future. Your solicitor will then be able to work on your behalf to put this into effect in your financial settlement.
When Should You Consider Speaking to a Wealth Manager?
If you or your spouse have substantial or complex assets, you could benefit from involving a wealth manager during financial negotiations on divorce.
It can be one of the most effective times to ask for advice and review your financial situation and it will help you secure the right assets for your situation and your long-term goals.
A wealth manager can assist during the evaluation of assets, advising on the value of pensions, the benefits of particular assets and the best way to deal with matters to minimise tax liabilities.
During the negotiation stage of a divorce, they will be able to advise on various options. For example, the amount of capital and income that might be available if you were to have the family home as part of your settlement or the potential value of a share in the pension pot. They will be able to suggest the best combination of assets, taking into account your likely needs in the future.
Once you receive a settlement, a wealth manager will be able to ensure that it is invested in the best way to achieve what you want. For example, you may want a higher level of income while raising children or be happy to reinvest income if you have lower income needs after they have flown the nest.
Your wealth manager will be able to advise you on managing your investments on an ongoing basis, making sure that your funds are working for you as effectively as possible over time.
Wealth managers can also advise on related issues such as securing a mortgage, to include the best type of mortgage for your situation, if you need to borrow funds.
Appointing a Wealth Manager
The role of a wealth manager in divorce can broadly be split into three stages:
- Financial Disclosure: advice on the balance of matrimonial assets, for example, how much is tied up in property or business and whether sufficient funds are held in pensions
- Negotiation: advice during the negotiation period to ensure that the financial agreement meets your requirements
- Settlement: advice on managing your assets once your financial settlement has been finalised
If you appoint a wealth manager fairly early in the divorce process, they will be able to consider your situation from the start, once full disclosure of assets has been made and valuations have been obtained.
Alternatively, you could ask for advice later on once a settlement has been proposed, to ensure that it makes the provision you need.
The First Meeting
Your first meeting is an opportunity for the wealth manager to explain to you the ways in which they can help you and ascertain what you would like from them.
Preparation
At this stage, you will not need to provide in-depth details regarding your assets. This is your opportunity to set out in broad terms what situation you are in, what types of assets are involved and how you envisage them helping you.
If you ask us to represent you in your divorce, we can advise you in advance of your first meeting with a wealth manager on any particular issues where it would be valuable to have their input. This will help them understand how they can assist and what areas will need to be dealt with.
Contact Our Family Law Solicitors
Our family law team have extensive experience in working with wealth managers during high-net-worth divorces to secure the best possible financial settlement for our clients.
To consult with one of our skilled family attorneys, feel free to contact us via email at info@witansolicitors.co.uk, or by completing our contact form. We will have a conversation about your circumstances and discuss how we can assist you. Our firm has offices located in Birmingham, Northampton, and London. For detailed insights into our services, please visit our webpage dedicated to explaining financial matters in divorce cases.
