When it comes to divorce, managing the emotional and societal implications take precedence over financial matters. This often leads to skewed division of assets. However, having a trusted and level headed financial advisor by one’s side can help both partners achieve fair distribution. He can also act as an impartial intermediary between the parties and prevent the financial discussions from turning hostile.
Here are stories of financial advisors who have supported their clients during the difficult phase by providing support and astute financial advice.
Mona Bhutani, Milestone Portfolio Consultants, Delhi
I helped the couple restructure their estate plan and segregate assets equally.
One of my couple clients had been at loggerheads for some time. They tried to make things work for the sake of their children but to no avail. Unable to sort out their differences, they decided to part ways.
I had been the couple’s financial advisor for many years, so at the time of separation they trusted me to act as a fair intermediary. As both the partners had a steady job and had been investing regularly for many years, the first task was to identify and separate their individual assets. I followed a simple rule, whosoever had invested the amount would receive the asset.
I also advised the couple to equally divide their joint financial assets such as stocks, mutual fund investments and insurance policies basis their monetary value. In case of their physical assets, as the kids would be living with the wife, we transferred the house in the wife’s name while a plot of land purchased by the couple and their car was transferred to the husband.
I also redrafted their will and changed the nominations in each of their assets to ensure that there would be no complications later. Lastly, I advised the partners to change their financial passwords and separate their account in our database to ensure privacy going forward.
Suresh Sadagopan, Ladder7 Financial Advisories, Mumbai
I advised my client to opt for a onetime settlement and start afresh.
My client and his wife were incompatible. Despite temporarily separating and reconciling once, they realised that it was not going to work.
When the client approached me for advice I urged him to opt for a one-time settlement so as to give both partners a fresh start in life. The wife’s only demand was that the settlement be fair. Luckily, the two separated on amicable terms. As the child (a minor) would be living with the wife, I advised the client to share 65% of his assets with his wife and child to provide them with ample financial support till she resumed work. Since most of the assets of the couple were financial, their division proved to be easy. The wife moved back to India after the divorce. And the husband chose to invest for their child’s higher education over and above the agreed settlement.
Rajesh Hattangady, Thiink, Thane
I helped the couple look past their differences to understand that they were saving for a common goal.
I found myself in a tricky spot when a couple client chose to part ways and both the spouses decided to enlist my help in drawing up their revised financial plan and check whether the asset division was in their best interest. Due to legal constraints I had to do this under a cloud of secrecy that is both parties were unaware that I was their partner’s financial advisor.
Unfortunately, there was a lot of miscommunication during the divorce proceedings on matters of alimony, child custody and child support. This led to hostility and both husband and wife were distrustful of the other’s intent. As their intermediary, I had to make them realise that they wanted only two things and these were common goals – the financial and emotional wellbeing of their daughter and financial security for the wife (as she was a homemaker). I had to make them see that the bitterness was affecting their daughter. It took us over two years though to convince each spouse. What gives me immense joy today is that both of them are on talking terms again.
