Divorce is taking so much longer than it used to for the ultra-wealthy, and the pattern appears unlikely to abate anytime quickly.
As Michelle Smith, CEO of Supply Monetary Advisors and an authorized divorce mediator, not too long ago informed ThinkAdvisor, many attorneys are actually telling purchasers to anticipate their divorce course of to last as long as 5 years.
In Smith’s expertise, there are a variety of causes that divorce can draw out when the couple has substantial wealth, and monetary advisors now must deal with monetary planning for a consumer who could also be tied up in divorce court docket for years.
This is only one cause that Smith pushes the overwhelming majority of her purchasers towards mediation, though that course of may also be difficult.
In the end, Smith argues, advisors who’ve purchasers going through a divorce ought to do all they’ll to assist them put together for each the technical and emotional challenges that can inevitably come up. It’s notably essential for advisors to offer clear perception and schooling to these divorcing purchasers who beforehand left the couple’s cash issues to their partner.
By making certain that each one sides have the data they want and a transparent understanding of the post-separation monetary image, Smith says, the advisor may also help purchasers benefit from a tough scenario. This, in flip, will strengthen the advisor-client relationship and probably even result in referrals from grateful purchasers.
See the slide present for a rundown of eight key ways in which Smith has seen the divorce course of evolve for ultra-high-net-worth purchasers. Most of those tendencies are right here to remain, she argues, so it’s important for advisors to review up.