40% of Aussies may need advice very soon

This article has been taken from the NMP education library which has now moved to Advisely

In our latest round of social research done on the effects of COVID, we found that almost 40% of all Australians are facing relationship strain over money – and history would tell us that many of those relationship problems will end in divorce.

Divorce is one of those terrible times for people where there is severe emotional upheaval, combined with often life-changing financial situations. When it comes to dividing assets there is no doubt that very good financial advice needs to be sought by both parties.

While some advisers specialise in divorce, many advisers will find that it is a segment of their client base that will grow – as people seek to change their circumstances in 2021 and beyond.

How to be there for your clients emotionally as well as strategically will be a big job for advisers who often find their clients split affairs means one of the partners walks away from the ongoing advice relationships due to conflicts, or the inability to share key services post-divorce or relationship breakdown.

To be ready for the relationship breakdowns advisers can think about these three things:

1. Do you understand the needs of both sides of the party, even if one controls the advice relationship? Can you spend one-on-one time with each partner to get a true sense of fair and right for each party? Sometimes this is as much as about marriage counselling or simply listening as it is about financial advice.
2. Do you have ready-to-go resources to give your clients during this stressful time? Information on how others have gone about it? Anything to guide them through what is already an emotionally charged time.
   
   
3. How can you structure low-cost follow up as the process unravels – sometimes over years? Can you make cost-effective communications on an ongoing basis to keep both parties on track as things drag out? How can you be part of an amicable outcome for all?

While more Australians definitely need advice, those that are already getting it are the most likely to be knocking on their adviser’s door for help in being part of the relationship breakdown solution – and it will require more than financial advice. It will require emotional intelligence, a shoulder to lean on and a guided experience through one of life’s most difficult situations.