party receiving large divorce settlement

Kirsty is in her 40s, has 2 children and has recently been awarded over £2m cash and £2m property in a divorce settlement. Kirsty had relied mainly on her ex-spouse and confided in us that she was not confident with money and needed help.

AMG Wealth began assisting Kirsty prior to the financial settlement being reached by the Solicitor. A joint meeting was held to ascertain what life for Kirsty would look like post settlement. We had to be mindful of the ex-spouse's personality during these negotiations as certain financial facts may not have been disclosed in full.

our client's concerns were

  • How much income would be needed to maintain a reasonable lifestyle with her children?
  • How much income would she be able to draw on her investments to provide that lifestyle. Also, for her income in her old age?
  • She wanted to ensure that the money was not lost in taxation and in inheritance tax.
  • She wanted to make sure that her children were secure should anything happen to her.
  • She wanted to make sure that her legacy would be protected for her children.

how did amg add value?

  • We embarked on building a foundation knowledge for Kirsty on how wealth management works. We explained the different options and our fees compared to those in the marketplace.
  • We offered a relationship-based service that is not transactional in nature but long term, spanning the generations.
  • We developed an interactive financial model that we could test with various settlement options. This really helped Kirsty and the solicitor to reach a sensible and fair settlement, as we had provided her ex-spouse with a detailed report on how the figure was reached.
  • We were used as a sounding board to verify what the other side were claiming financially.
  • We ensured that we had a family legacy plan that would protect the wealth for the next generation against life's uncertainties.

our recommendations

  • We worked with a panel solicitor and protected the legacy for Kirsty and her children and ensured her ex-spouse would not have access to any of her capital in the event of her death.
  • We developed an investment plan that would be tax efficient and helped to protect Kirsty against inflation over the longer term.
  • We delivered a foundation financial planning knowledge to Kirsty's children and encouraged them to manage wealth as a family.
  • We introduced the concept of family wealth management.
  • We have devised an inheritance tax mitigation timetable, which would save a great deal of tax if anything were to happen to Kirsty.
  • We introduced Kirsty to an accountant who would understand her needs from our trusted professional panel.

Disclaimer: all scenarios are based on real life events however, to protect client identities all names, locations and occupations have been replaced with pseudonyms.