40% of Aussies may need advice very soon

Vanessa Stoykov,  creator,  No More Practice

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

Want more of the latest in opinions, expert insights and training?

Subscribe to our free newsletter now

/ Related content

Advisers need to change their hook

While fees used to be one of the biggest barriers to broader use of fina....

Can advisers bill less and earn more?

A new kind of advice product could solve the dillemma many advisers now fin....

How advisers can tell their story

Showing the value of financial planning using your own experiences is a ....

Leave a comment /

Related content /

27 July, 2021

Vanessa Stoykov,creator,No More Practice

Advisers need to change their hook

While fees used to be one of the biggest barriers to broader use of financial advice, people are now more willing to pay for certainty in a very un....

Read now

16 June, 2021

Vanessa Stoykov,creator,No More Practice

Can advisers bill less and earn more?

A new kind of advice product could solve the dillemma many advisers now find themselves in, where demand is higher than it has been in some time but i....

Read now

01 June, 2021

Vanessa Stoykov,creator,No More Practice

How advisers can tell their story

Showing the value of financial planning using your own experiences is a compelling strategy - here are three steps for building your story that won....

Read now