Unfortunately, a marriage can break down, and major considerations are:
- Understanding the present financial position and what the options are
- Understanding the objectives to help plan appropriately for the future lifestyle
Recently we had to deal with such a situation. Having dealt with the clients for several years we knew the current financial situation, and the cashflow modelling we had done showed a healthy financial future – all laid out to meet their desired lifestyle and life goals.
The divorce, whilst an unpleasant situation, was the best outcome for both parties, but of course had major financial implications.
Being able to model the various outcomes, based on a range of asset splits, showing the parties that both would have enough capital and income, allowed an informed discussion. One party had a higher requirement for capital, as they were earning more, whilst the other had a higher requirement for income to maintain their desired lifestyle. We were able to review which assets each party would benefit from holding, analyse the probability of not running out of money, and provide peace of mind at a very stressful and uncertain time.
Presenting this to both parties, and their Solicitors, facilitated an agreed division of assets, in a non-acrimonious way. This allowed an agreement to be reached quickly, and saved time and money.