1. As divorce lawyers, what do we do?

2. What type of assistance do our/your clients typically require?

3. How can you add value to our clients during divorce?

4. What are some of the common misnomers about divorce?

Financial Matters-• Organise the division of assets,

liabilities and financial resources- Property settlement

• Consider the division of income- Spousal Maintenance

Parenting Matters-• Organise the time children spend

between their parents

Divorce-• Formalise the end of the marriage

When it comes to financial matters, my clients are trying to-

Divide their assets/ income in a manner that provides them with some certainty for the future

And then there is the law!!

1. What do you have?2. How did you get it?3. What about the future?4. Is it ‘just and equitable’

A few Misnomers!

• It starts at 50/50, doesn’t it?

• Women always get more, don’t they?

• Superannuation won’t count, will it?

• Once you separate, it is ok- anything you make afterwards is yours, isn’t it?

• Generally in providing strategic advice as you always would

• As a financial educator

• In assisting separating couples to see past the division to being able to recreate their future

• In working with legal advisors and clients to prepare and consider different financial options for settlement and to test those options before events such as mediation

• To gather information, such as insurance, superannuation and other items in an asset pool

• As a support to your client

https://www.youtube.com/watch?v=YF_5NXVX3zk

What is Collaborative Practice?

A structured resolution process for separated couples where, with the assistance of an advisory team, they are encouraged to settle their differences through face to face meetings with a commitment from all involved that they will not go to Court.

How are Financial Planners involved?

1. Acting for an individual client during the process often in a role of ‘financial educator’

2. Advising both parties in the process on the financial options and outcomes

3. Assisting clients moving out of the process with their future financial management

• 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 the

husband had 3 case guardians appointed to make decisions on his behalf pursuant to a QCAT Order. The guardians consulted with me and with the wife, chose the collaborative process.

Goals and Interests of the Parties• Wife and Husband’s Litigation Guardians

had similar goals and interests, focused on continuing financial security.

• Wife had difficulty meeting her monthly expenses and she wished to be in a better position regarding this.

• Husband’s Litigation Guardians wanted to be able to continue to pay Husband’s considerable medical expenses out of the property settlement.

Property ValueHusband’s Cash at Bank – All Accounts $164,000Wife’s Cash at Bank – All Accounts $10,000Wife’s Superannuation $10,113Husband’s likely Tax Bill ($12,000)Possible Centrelink debts and Professional Claims ($7,000)Possible Debts to Colin ($15,000)TOTAL POOL $150,113

In addition the husband had superannuation and a UK Pension and was receiving income protection insurance of around $87k per annum

Decision was made to engage a Financial Planner as part of the process to-

• Provide information as to the budgets of each of the parties.

• Assist with obtaining information about the assets, liabilities, insurance and superannuation (as husband’s were in part overseas)

• Provide specific advice of the parties options with the husband’s income protection insurance and overseas superannuation/pension

The Financial Planner was able to-• Assist in calculating and identifying the

asset pool• Assist with financial education including

realistic budgeting• Obtain information regarding the

husband’s income protection payment and give the parties clear information about their options regarding this payment

• Total payment approximately $87,000 a year divided between parties

How are Financial Planners involved?

1. Acting for an individual client during the process often in a role of ‘financial educator’

2. Advising both parties in the process on the financial options and outcomes

3. Assisting clients moving out of the process with their future financial management

Thank You!