Pensions and divorce

How to cope with financial change

After divorce, we helped a woman secure the rights to her former husband’s pension plan, which was granted to her as part of their divorce settlement.

“I am more than satisfied with the service I get for my pension portfolio and that it is regularly reviewed.”

Janice Bell – Investment Management client

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

Advice needed

The solicitor needed us to provide expert guidance on a home for the money so that the divorce could be finalised. The solicitor needed to be regularly updated so that the pension could fit within the overall divorce settlement.

Help needed

The client needed advice on how best to manage this money since she had previously taken limited involvement in the family financial affairs. She also needed to examine how the divorce and settlement would impact on her financial security and the future.

Adjusting risks

Her former husband had taken greater risks with his pensions than our client was willing to take. She wanted to manage her funds so that security was a priority.

Problems/Challenges

Advice needed

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 explained these various options her.

Calculated how much she needed

We showed her the amount needed to secure her desired future lifestyle. This gave her peace of mind that she had enough assets and income to fund her future needs.

Easy to understand position

Her plan meant she could easily understand her options. This allowed us to examine some scenarios and to explore ways that she could improve her position.

Investment plan

We created an investment plan to generate a tax-efficient future income whilst taking the least risk necessary to achieve this.

Outcomes and Impact

Separate finances

The client was able to feel secure in her financial future at a very difficult personal time. She was able to separate her finances from her former spouse and move on with her life.

Taking decisions

We helped her to make important decisions about her future income and her financial needs.

Secure investments

We helped her to arrange her investments so that she could achieve a secure retirement. All this was done with a focus on taking very low risk while maintaining her future lifestyle needs.

Continuing Support

Each year we revise her financial plan so that we can react to any changes and re-assess whether she remains on target to meet her long-term goal of security.

We also examine her investment portfolio and aim to keep it on track towards its goals while taking the least risk needed to do so.