40% of Aussies may need advice very soon

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 I know some advisers who specialise in divorce, I think 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 to come post-COVID, 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 in 2021 and beyond 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. 

Knowing so many of you in the advice space, I have no doubt these people are in good hands. It is just another issue to think about on top of everything else.

It is worth watching Nina’s story and how she handled her divorce settlement – and she openly admits if she had advice before she made decisions, she would have gone a different way.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

The opinions, advice, or views expressed in this content are those of the author or the presenter alone and do not represent the opinions, advice or views of No More Practice Education Pty Ltd. Our contents are prepared by our own staff and third parties who are responsible for their own contents. Any advice in this content is general advice only without reference to your financial objectives, situation or needs. You should consider any general advice considering these matters and relevant product disclosure statements. You should also obtain your own independent advice before making financial decisions. Please also refer to our FSG available here: http://www.nmpeducation.com.au/financial-services-guide/.

Closing the data gap

Let’s start with some troubling figures: according to recent projections, there are around 12 million Australians who say they have unfulfilled advice needs. The average

Government finally responds to the QAR

At long last, Assistant Treasurer Stephen Jones has outlined the Government’s preliminary response to the Quality of Advice review – and revealed which of Michelle