In our latest round of social research done on the effects of COVID, we found that almost 40% of all Australians are facing relationship strain over money - and history would tell us that many of those relationship problems will end in divorce.
Divorce is one of those terrible times for people where there is severe emotional upheaval, combined with often life changing financial situations. When it comes to dividing assets there is no doubt that very good financial advice needs to be sought by both parties.
While I know some advisers who specialise in divorce, I think many advisers will find that it is a segment of their client base that will grow - as people seek to change their circumstances in 2021 and beyond. How to be there for your clients emotionally as well as strategically will be a big job for advisers who often find their clients split affairs means one of the partners walks away from the ongoing advice relationships due to conflicts, or the inability to share key services post-divorce or relationship breakdown.
To be ready for the relationship breakdowns to come post-COVID, advisers can think about these three things:
While more Australians definitely need advice, those that are already getting it are the most likely to be knocking on their adviser’s door in 2021 and beyond for help in being part of the relationship breakdown solution - and it will require more than financial advice. It will require emotional intelligence, a shoulder to lean on and a guided experience through one of life’s most difficult situations.
Knowing so many of you in the advice space, I have no doubt these people are in good hands. It is just another issue to think about on top of everything else.
It is worth watching Nina’s story and how she handled her divorce settlement - and she openly admits if she had advice before she made decisions, she would have gone a different way.
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While we all know people need advice, until it is more unaffordable advi....