When it comes to the division of assets and income on the breakdown of a marriage, lawyers are limited in the assistance we can provide clients. Financial Planners are an essential advisor for clients during separation both providing assistance with the division of assets but perhaps more importantly, providing guidance on how clients can rebuild for their future. In this presentation we consider the role of Financial Planners in a divorce with a focus on their role in Collaborative Practice.
Text of Financial Planning in the world of Family Law! The role of Financial Planners in Collaborative...
1. 1. As divorce lawyers, what do wedo?2. What type of assistance doour/your clients typicallyrequire?3. How can you add value to ourclients during divorce?4. What are some of the commonmisnomers about divorce?
2. Financial Matters- Organise the division of assets, liabilitiesand financial resources- Propertysettlement Consider the division of income- SpousalMaintenanceParenting Matters- Organise the time children spend betweentheir parentsDivorce- Formalise the end of the marriage 3. When it comes to financialmatters, my clients are trying to-Divide their assets/ income in amanner that provides them withsome certainty for the futureAnd then there is the law!! 4. 1. What do you have?2. How did you get it?3. What about the future?4. Is it just and equitable 5. A few Misnomers! It starts at 50/50, doesnt it? Women always get more, dont they? Superannuation wont count, will it? Once you separate, it is ok- anythingyou make afterwards is yours, isntit? 6. Generally in providing strategic advice asyou always would As a financial educator In assisting separating couples to see pastthe division to being able to recreate theirfuture In working with legal advisors and clients toprepare and consider different financialoptions for settlement and to test thoseoptions before events such as mediation To gather information, such as insurance,superannuation and other items in an assetpool As a support to your client 7. https://www.youtube.com/watch?v=YF_5NXVX3zk 8. What is CollaborativePractice?A structured resolution processfor separated couples where,with the assistance of anadvisory team, they areencouraged to settle theirdifferences through face to facemeetings with a commitmentfrom all involved that they willnot go to Court. 9. How are FinancialPlanners involved?1. Acting for an individual clientduring the process often in arole of financial educator2. Advising both parties in theprocess on the financialoptions and outcomes3. Assisting clients moving outof the process with theirfuture financial management 10. Husband aged 54 and Wife 44. They had been married for 19 years. There were 2 children 13 and 11. At the time of my involvement thehusband had 3 case guardiansappointed to make decisions on hisbehalf pursuant to a QCAT Order. Theguardians consulted with me and withthe wife, chose the collaborativeprocess. 11. Goals and Interests of the Parties Wife and Husbands Litigation Guardians hadsimilar goals and interests, focused oncontinuing financial security. Wife had difficulty meeting her monthlyexpenses and she wished to be in a betterposition regarding this. Husbands Litigation Guardians wanted to beable to continue to pay Husbands considerablemedical expenses out of the property settlement. 12. Property ValueHusbands Cash at Bank All Accounts $164,000Wifes Cash at Bank All Accounts $10,000Wifes Superannuation $10,113Husbands likely Tax Bill ($12,000)Possible Centrelink debts and Professional Claims ($7,000)Possible Debts to Colin ($15,000)TOTAL POOL $150,113In addition the husband had superannuation and a UK Pensionand was receiving income protection insurance of around $87kper annum 13. Decision was made to engage a FinancialPlanner as part of the process to- Provide information as to the budgets of each ofthe parties. Assist with obtaining information about theassets, liabilities, insurance and superannuation(as husbands were in part overseas) Provide specific advice of the parties optionswith the husbands income protection insuranceand overseas superannuation/pension 14. The Financial Planner was able to- Assist in calculating and identifying the assetpool Assist with financial education including realisticbudgeting Obtain information regarding the husbandsincome protection payment and give the partiesclear information about their options regardingthis payment Total payment approximately $87,000 a yeardivided between parties 15. How are FinancialPlanners involved?1. Acting for an individual clientduring the process often in arole of financial educator2. Advising both parties in theprocess on the financialoptions and outcomes3. Assisting clients moving outof the process with theirfuture financial management 16. Thank You!