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27 June 2017

Resolution, which represents 6,500 family justice professionals, has published a report highlighting the growing need for specialist financial advisers in family law. The report has been published in partnership with the Personal Finance Society, the professional body for the UK financial planning profession.
 
The report, authored by a group of financial advisers and planners, has estimated the size of the divorce and separation market as £500m each year. However, it also states that there are currently only 42 financial adviser specialists accredited in family law, which is just one for every 5,000 people that divorce each year.
 
As well as exploring this untapped demand for skilled financial advisers in family law, the report also sets out the long-term sustainability for financial advisers, and the skills required for success within this field.
 
Nigel Shepherd, national chair of Resolution, said:
 
“We know from talking to financial planners and advisers who are already Resolution members that the world of financial advice is changing.
 
“What clients want is sound guidance and trusted support. This is especially true in times of change or upheaval, and they do not come much more unsettling than a divorce or separation.
 
“Advising those going through a divorce or separation is a very specialist area. There are real opportunities for those financial advisers that are able to position themselves as experts in the field, and by being part of Resolution they have great access to a large, unsaturated market.”

Keith Richards, Chief Executive of the Personal Finance Society, added:

“In high stress situations, such as divorce or the loss of a partner, emotions can make focusing on the practical aspects of personal finance decisions extremely difficult. Having access to trusted financial advice as part of an integral and supportive professional network at such a key stage in life can be invaluable.

“Professional financial planning gives consumers peace of mind that their personal finances are aligned with their future aspirations and goals.”
 
Financial advisers are crucial in every aspect of a family case, and Resolution members are “crying out” for specialist advisers.
 
One Resolution member - a family lawyer, said:
 
“99.9% of our cases are about the financial needs for the separating couple - how much they require to buy a house, what their mortgage capacity is. It’s about what they need in terms of an income.
 
“This involves looking at investments to see what income this can provide for them.  And importantly, it’s also about what they’re going to need at retirement. It’s very rare I see a case where financial input isn’t needed at some stage.”
 
There are a number of different professions – solicitors, mediators, family consultants and barristers – that all come under the family justice banner and work regularly with financial advisers. According to Resolution, all these professions acknowledge that there is a shortage of financial advisers in this field.
 
One family mediator says in the report “I would like to involve financial advisers more in all my cases, but at the moment there just aren’t enough of them working in this area. I have two or three that I am close to… but they are really, really busy!”
 
Through this report, Resolution hopes more financial advisers will see the benefits of working in the divorce and separation market, stating they are well-placed to help new entrants build their business.
 
Nigel Shepherd, national chair of Resolution, said:
 
“At Resolution, we already have a network of 6,500 family justice professionals that all share the same positive values and principles about divorce and separation. We have the right infrastructure to help financial advisers meet the right family lawyers.”