Client stories

Client receiving large divorce settlement

Kirsty is in her 40s, has two 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 put Kirsty in touch with an accountant who would understand her needs from our trusted professional panel.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

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

The examples, figures and information given here are specific to this particular case study and the client's unique circumstances, therefore this example cannot be extrapolated to wider clients or other circumstances. This is a standalone example; it is not intended to be advice and provides an example of the support an adviser may be able to offer.