As couples navigate the complexities of divorce after many years of shared financial arrangements, questions often arise about whether to continue with a joint financial adviser or seek separate counsel. This issue is particularly relevant for individuals who previously relied on a single adviser primarily engaged through their spouse.
A recent discussion with Jenny Judd, a wealth manager at WIM Wealth Management, highlights that while financial advisers are trained to remain impartial and maintain confidentiality between separating parties, the dynamic can change significantly during a divorce. Advisers typically support couples through these transitions fairly, but the longstanding relationship held primarily with one spouse may create concerns about impartiality.
Trust between client and adviser is fundamental, especially during such a pivotal life change. Individuals going through divorce should feel comfortable discussing their financial situation, concerns, and goals openly. If trust appears compromised or if there is discomfort in communication, it may be advisable to consider establishing a professional relationship with a new adviser. Interviewing multiple firms allows individuals to assess differences in approach, personality, expertise, service levels, investment strategies, and fee structures.
In many cases, the original financial advisory firm may still be suitable, but it could be beneficial to assign different advisers within that firm to each party. This separation helps tailor financial plans that reflect the individual’s post-divorce goals, risk tolerance, income needs, and broader life plans, which naturally evolve after the end of a marriage. Such a fresh start can also help shed any assumptions or preconceptions formed by prior joint financial management, fostering clearer and more independent financial decision-making.
The ultimate division of assets will be governed by the legal divorce settlement. Following the settlement, advisers—whether new or existing—can collaborate to ensure an effective transition and management of assets.
Additionally, individuals should review how their finances are held across various account types, including pensions, individual savings accounts, and general investment portfolios. Thoughtful management of income withdrawals from these accounts, with attention to tax implications, is important. Cash flow modelling can be a useful tool to project sustainable income levels over the long term and support informed decisions about lifestyle funding.
The overarching priority for those undergoing divorce should be to achieve financial clarity and confidence, enabling a degree of control over their economic future during what can otherwise be a challenging period.