Divorce can be both a stressful and costly experience.
Someone going through a divorce will always recognise that they need to pay solicitor fees. However, they may feel less comfortable paying for financial advice. This may be because sometimes the financial adviser only gets involved at the end of the process and by then the client has had enough of the whole ordeal and wants to move on.
For anyone in that situation I want to relate a true client experience.
My client has finalised her divorce and received a pension sharing order against her ex-husband’s SIPP (Self Invested Personal Pension)
The pension sharing order had been prepared many months earlier and indicated the percentage share she would receive.
The pension sharing order had included a valuation of the pension fund at that date. But due to the period of time over which the divorce negotiations were taking place the valuation that had been used as part of the negotiations was now out of date.
Both the SIPP administrator and her ex-husband’s financial adviser insisted that her pension share should be applied to the value of the SIPP on the date of Decree Absolute.
Infact this is incorrect. The relevant percentage to be shared with my client is based on the fund value on the date on which the value is calculated. This is referred to as “Valuation Day”.
Valuation Day is a date within four months of the scheme receiving all the necessary documentation and the necessary fees, so that the administrator is in a position to implement the sharing order.
In my clients situation since the stock market had risen in the time between the initial valuation and “Valuation Day” the valuation at this date resulted in an extra fund of £50,000.
Needless to say my client was delighted with the additional benefit she received due to my expert knowledge compared to her ex-husband’s adviser.
If you are going through a divorce and require financial advice on any aspect of your situation please do contact me on 01932 698150. The initial meeting is carried out at my cost and without obligation on your part.
It is an opportunity for me to understand what it is you want to achieve, what your goals and priorities are, and what I can do to help.
photo credit: Flick/Images_of_money
