How divorce can affect retirement

It is important not to assume that solicitors understand clearly what the advisers' role is. Advisers need solicitors, and their clients, to understand the value that professional financial expertise can provide, particularly when brought in right from the start.

As part of our recent webinar, Professor Debora Price, Professor of Social Gerontology at the University of Manchester, indicated that solicitors often get told by their clients to ignore the pension completely in a settlement, as the emotional cost of battling over it is too high.

In the long run, however, this can have huge financial implications, particularly for women, and advisers have a role to play in making sure the scales are balanced and that both people in a divorcing couple get the best shot at a fair outcome.

When dealing with divorce, advisers should work together with solicitors to achieve the best for their clients.

The best way to establish good working relationships is to talk to each other. Roundtables, seminars, and networking events, even if they have to be carried out virtually, are a great way to spark conversations with solicitors and encourage conversations which focus on knowledge exchange, rather than selling services.

I was pleased to see that Amyr Rocha-Lima, Partner, Holland Hahn & Wills LLP, recently created seminars in Kingston upon Thames, where he is based, specifically around pensions and divorce.

Thirty-five solicitors turned up to learn and share knowledge, while hearing how divorce can be helped with good financial planning. This may well, in time, lead to more mediation and less litigation, and generally ensure clients are better served during a split.

A trusted partner

Overall, my conclusion is simple. Financial advisers can be a great help to couples, particularly if they are treated as a trusted partner. 

We cannot underestimate the strain caused by divorce, but effective financial planning, tackling the burn out and working closely with a network of solicitors can support both parties to make the right decisions and allow them to embrace their fresh start on an equal footing.

Sara McLeish is chief executive of Legal and General Financial Advice