Advisors too often deprive couples divorcing in their 60s the expert advice they need to disentangle finances, says one industry specialist, pointing to a looming crisis for the industry and, perhaps, the economy.
Advisors too often deprive couples divorcing in their 60s the expert advice they need to disentangle finances, says one industry specialist, pointing to a looming crisis for the industry and, perhaps, the economy.
“Things like understanding pensions, RRSPs, CPP benefits, insurance plans, health benefits, establishing credit and closing joint bank accounts – I have had conversations with the divorcees I work with and there are many areas that are often overlooked … even the advisors they’ve had in the past,” said Heather Holjevac, a senior wealth advisor with TriDelta Financial.
Couples who shared an advisor during their marriage may not want to use the same person during, and indeed leading up to, the divorce, she points out.
Holjevac’s comments come after UK firm Westminster Wealth Management launched a service last week to add financial planning services specifically focused on helping clients rebuild after divorce.
The new team will work with clients directly or through a lawyer on pre-divorce options for free during the initial consultation with advisors.
The firm is launching an online financial settlement calculator called the Bailey Lung Divorce Calculator, which can be used by lawyers to help calculate what their client needs from a divorce.
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The services comes of particular importance and highlights a growing need for advisors to specialize in divorce planning or better tailor their services to handle splits between clients.
Holjevac case study:
A young woman who left her boyfriend after taking a job in New York at a law firm. The pair tried a long-distance relationship that later fell apart after a year in New York.
She moved on, met a man named Jeff and got pregnant soon after. Unfortunately, the young woman died three months post-birth after a tumour was found in her ovary.
Because the woman lived in the U.S., it took longer to settle her estate, according to Holjevac. The woman’s mother, one day, receives a $75,000 U.S. as part of a life insurance policy but instead of half the funds going towards Jeff and her grandchild, the money instead went to her ex-boyfriend.
“This story should serve as a reminder for all of us to be more diligent in keeping our will current and also the all-important beneficiary designations updated, particularly after major life events such as marriage, divorce, death and births,” she said.
“Things like understanding pensions, RRSPs, CPP benefits, insurance plans, health benefits, establishing credit and closing joint bank accounts – I have had conversations with the divorcees I work with and there are many areas that are often overlooked … even the advisors they’ve had in the past,” said Heather Holjevac, a senior wealth advisor with TriDelta Financial.
Couples who shared an advisor during their marriage may not want to use the same person during, and indeed leading up to, the divorce, she points out.
Holjevac’s comments come after UK firm Westminster Wealth Management launched a service last week to add financial planning services specifically focused on helping clients rebuild after divorce.
The new team will work with clients directly or through a lawyer on pre-divorce options for free during the initial consultation with advisors.
The firm is launching an online financial settlement calculator called the Bailey Lung Divorce Calculator, which can be used by lawyers to help calculate what their client needs from a divorce.
#pb#
The services comes of particular importance and highlights a growing need for advisors to specialize in divorce planning or better tailor their services to handle splits between clients.
Holjevac case study:
A young woman who left her boyfriend after taking a job in New York at a law firm. The pair tried a long-distance relationship that later fell apart after a year in New York.
She moved on, met a man named Jeff and got pregnant soon after. Unfortunately, the young woman died three months post-birth after a tumour was found in her ovary.
Because the woman lived in the U.S., it took longer to settle her estate, according to Holjevac. The woman’s mother, one day, receives a $75,000 U.S. as part of a life insurance policy but instead of half the funds going towards Jeff and her grandchild, the money instead went to her ex-boyfriend.
“This story should serve as a reminder for all of us to be more diligent in keeping our will current and also the all-important beneficiary designations updated, particularly after major life events such as marriage, divorce, death and births,” she said.
