3 reasons why financial advice during a separation helps smooth the bumpy road

3 reasons why financial advice during a separation helps smooth the bumpy road

We have teamed with a friend and financial guru John Purl to highlight the advantages of working with a supported team environment during your divorce journey. In his role as senior wealth advisor, John knows more than ever that during life changing events, like separation, it is so important to have the benefit of financial empowerment and guidance to get you through. John has written a short article about what he thinks are the 3 main benefits of financial advice. We think it’s pretty spot on…

3 reasons why financial advice during a separation helps smooth the bumpy road…

Births, deaths and marriages, three life changing events that shape the direction and often purpose of a persons future. The birth of a child brings out the desire to protect and provide, to make sacrifice personally and financially for the growth and protection of the child. Deaths are highly emotional events when the loss of a loved one occurs. These events often result in deep soul searching and questions of ones own purpose, position and goals in life. Marriages are celebrations of the coming together and the union of a persons soul mate, the person that is to share the journey of life, career and fortune. However, some times this journey is not ever lasting due to various reasons. It may be financial stresses, it may be career taking priority over family, it may be a change in feelings towards that person.

This period of separation is often emotional due to the areas needing to be addressed to finalise the separation. I am not talking about finances specifically, but addressing areas such as:

  • Reasons for separation
  • The impact to children
  • Uncertainty of both individuals future (being single again)

From a financial position the most common scenario (but not always) is the presence of one main bread winner in the relationship which often raises questions and comments around entitlement and breakup of assets. Not only is it an uncomfortable conversation, but one that contains long last impacts to the lifestyle of each person moving forward.

Having a team around them that truly understands the importance of education, guidance and empowerment is crucial to ‘smoothing’ the often bumpy road of separation.

Education: Building a foundation knowledge of assets, liabilities and cashflow. Education around returns and risks of various assets to highlight that not every asset is created equal simply based on present day value. Increasing a person’s financial aptitude and awareness of their position.

Guidance: Guidance through this difficult time is important, not pushing the client into an outcome. Understand what is important to the client, where they want to be in 3, 5 and 10 years-time and guide them through education and engagement to achieve that outcome. Time is an important element in this process as it takes time to guide and navigate a client through a complex world which they may have not been exposed to previously. Perhaps not being the breadwinner or in control of household finances would mean the thought of now taking control of these tasks as being scary.  

Empowerment: When a client becomes educated, assisted and has clarity on goals and objectives, empower them to make decisions. Financial and ‘life’ decisions that have real impacts. Successfully making a call on a situation or decision is extremely rewarding and leaves the client feeling in control and successful.

Separation from a loved one is stressful and difficult process, but, a process made simpler and more rewarding when the correct team is engaged and the client is engaged and involved throughout the process.

This article was written by John Purl, Senior Advisor at Affinitas Capital

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