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Pensions and divorce case study

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Dan Woodruff
Dan Woodruff

Case study on how we advised a client on the rights to her spouse’s pensions on divorce and then built these assets into a comprehensive financial plan which enabled her to achieve her long-term goals.

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allowed us to get to know her and work out a future Case Study direction for her finances. She set out her dreams to retire at age 60 and provide a lump sum for her children’s Pensions and education. We produced her financial plan by gathering all the Divorce information we needed on her present income and outgoings, assets and liabilities. We then made assumptions as to how these would change over time Summary: based on a realistic assessment of her circumstances and how her goals would affect these areas. This enabled us We advised a client on the rights to her spouse’s to look into the future and work out whether she would pensions on divorce and then built these assets into a remain on track to hit her goals. comprehensive financial plan which enabled her to achieve her long-term goals. As part of this, we assessed her existing assets including her pensions and agreed a strategy to manage the risks Background: of these investments in order to achieve long-term goals. The client was getting divorced from her husband and had sought advice from a family solicitor. As part of the Outcomes and Impact: divorce settlement, she was to receive a share of her The client was able to receive the pension money from husband’s sizeable pension schemes. The solicitor her former spouse and completely separate her finances was unable to give advice on financial matters and so from his pensions. This process was handled efficiently referred the client to us. and with minimum involvement from the client. Problems/Challenges: We were able to give her confidence in her future financial stability and that she would be able to afford to retire with In these matters, the Law Society requires solicitors to the lifestyle she required whilst still providing for her refer their clients to an independent financial adviser. children. The solicitor needed us to find a home for the money so that the divorce could be finalised. To be able to provide a professional service to their client, the Continuing Support: solicitor needed to be regularly updated at every point Each year we schedule two reviews with the client. The of the process so that the pension could fit within the first is to re-evaluate her financial situation and revise her overall divorce settlement. financial plan so that we can take into account any changes to her circumstances and re-assess whether she The client needed advice on how best to manage this remains on target to meet her long-term goals. money since she had previously taken limited involvement in the family financial affairs. Since her life The second meeting reviews her investment portfolio and was undergoing a major change, she also needed to aims to keep her on track towards her goals while taking examine how the divorce and settlement would impact the least risk needed to do so. on her financial security and the future. Please contact us Our approach: The main driver was to find a home for the pension for further details: funds in a short time frame. We worked with the client to agree a strategy for the pension funds, produced research on the most appropriate pension solutions for Woodruff Financial Planning her needs, and discussed these various options with The Colchester Centre, Hawkins Road, the client. Colchester, Essex CO2 8JX. Email: advice@woodruff-fp.co.uk We managed the process so the client and solicitor had Fax: 01206 266885 confidence that the pensions were to be transferred to the client’s name in a timely manner. Tel: 01206 266882 Once this critical process was in motion we sat down www.woodruff-fp.co.uk with the client to produce a financial life plan. This Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is for information only, and does not constitute financial advice. This document is aimed at United Kingdom residents only. © Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent.

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Pensions and divorce case study

  • 1. allowed us to get to know her and work out a future Case Study direction for her finances. She set out her dreams to retire at age 60 and provide a lump sum for her children’s Pensions and education. We produced her financial plan by gathering all the Divorce information we needed on her present income and outgoings, assets and liabilities. We then made assumptions as to how these would change over time Summary: based on a realistic assessment of her circumstances and how her goals would affect these areas. This enabled us We advised a client on the rights to her spouse’s to look into the future and work out whether she would pensions on divorce and then built these assets into a remain on track to hit her goals. comprehensive financial plan which enabled her to achieve her long-term goals. As part of this, we assessed her existing assets including her pensions and agreed a strategy to manage the risks Background: of these investments in order to achieve long-term goals. The client was getting divorced from her husband and had sought advice from a family solicitor. As part of the Outcomes and Impact: divorce settlement, she was to receive a share of her The client was able to receive the pension money from husband’s sizeable pension schemes. The solicitor her former spouse and completely separate her finances was unable to give advice on financial matters and so from his pensions. This process was handled efficiently referred the client to us. and with minimum involvement from the client. Problems/Challenges: We were able to give her confidence in her future financial stability and that she would be able to afford to retire with In these matters, the Law Society requires solicitors to the lifestyle she required whilst still providing for her refer their clients to an independent financial adviser. children. The solicitor needed us to find a home for the money so that the divorce could be finalised. To be able to provide a professional service to their client, the Continuing Support: solicitor needed to be regularly updated at every point Each year we schedule two reviews with the client. The of the process so that the pension could fit within the first is to re-evaluate her financial situation and revise her overall divorce settlement. financial plan so that we can take into account any changes to her circumstances and re-assess whether she The client needed advice on how best to manage this remains on target to meet her long-term goals. money since she had previously taken limited involvement in the family financial affairs. Since her life The second meeting reviews her investment portfolio and was undergoing a major change, she also needed to aims to keep her on track towards her goals while taking examine how the divorce and settlement would impact the least risk needed to do so. on her financial security and the future. Please contact us Our approach: The main driver was to find a home for the pension for further details: funds in a short time frame. We worked with the client to agree a strategy for the pension funds, produced research on the most appropriate pension solutions for Woodruff Financial Planning her needs, and discussed these various options with The Colchester Centre, Hawkins Road, the client. Colchester, Essex CO2 8JX. Email: advice@woodruff-fp.co.uk We managed the process so the client and solicitor had Fax: 01206 266885 confidence that the pensions were to be transferred to the client’s name in a timely manner. Tel: 01206 266882 Once this critical process was in motion we sat down www.woodruff-fp.co.uk with the client to produce a financial life plan. This Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is for information only, and does not constitute financial advice. This document is aimed at United Kingdom residents only. © Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent.