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Press comment: Divorce numbers decline, but finance risks remain

26/09/2018

If you’re covering the latest figures on divorce from the Office for National Statistics please see the following comment from Rachael Griffin, tax and financial planning expert at Quilter: 

Rachael Griffin“After years of increasing, headline ONS figures today reveal an encouraging trend – the number of divorces is now declining.  However, this is not true across the board. The number of divorces among same-sex couples more than trebled between 2016 and 2017 and among older people rates are actually higher in 2017 than in 1993, which is perhaps because of the number of people getting married in later life.

“Meanwhile, ministers have laid the ground for no-fault divorce which could lead to the numbers of divorces rising in the future. The current rules are archaic for more straight forward cases of divorce. Where the circumstances are relatively simple, a no-fault divorce would make a great deal of sense. That said the separation of jointly owned assets can be costly and complex. Legal and financial advice should be sought – it’s a new chapter which should trigger a new thought process with regards to estate planning, inheritance and tax planning.

“No matter how good natured your divorce is, it is vital to review any existing will and write a new will to make sure that your estate goes to the people you love and not people you used to. Similarly, if you have been working hard your whole life to build up a tidy pension pot for yourself it’s critical you review who you’ve nominated to receive the pension in the event of you dying. Alongside pension nominations other key estate planning issues to think about include trusteeships and asset ownerships.

“Divorce often leads to complex family situations as partners remarry or select new partners. No one knows what the future holds, and even if you don’t think you’ll end up being part of a complex family structure, you or your children could be at some point in the future. If you want your wealth distributed in a certain way, or personal possessions passed to certain loved ones, then you must plan for it. Investing in a trust can help to provide control and certainty over how and when wealth is distributed. Our research* reveals that people recognize the power of trusts, they often don’t follow through with setting one up -  only 40% have set up a trust, even though 65% believe it is a good way to safeguard wealth.”

 

*Quilter surveyed 779 peopled aged 35 or older who have received financial advice and have £50,000 or more in investable assets.

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £109.8 billion in customer investments (as at 30 September 2019, excluding Heritage life assurance).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Old Mutual International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.