The first principle to keep in mind when a client couple tells you that they are going to divorce is the importance of remaining neutral. This will protect your professional integrity and ensure you are serving your clients’ best interests.
You cannot provide legal advice or offer recommendations as to what either of the clients deserves financially in a divorce, cautions Dawn Hawley, a fee-for-service financial planner and a certified divorce financial analyst with King LeMoine Hawley Inc. in Edmonton. That is the province of their lawyers. You can, however, provide financial information to both partners and work with other divorce professionals involved in the process, such as lawyers.
Follow this expert advice on what to do when clients tell you they are divorcing:
> Do your research
Learn about the divorce process and the areas where you are permitted to give advice as a financial planner and the areas that are off limits.
Indeed, if you are working with families or couples in your practice, it’s your responsibility to have some knowledge of the divorce process, says Eva Sachs, founder and CDFA with Toronto-based Women in Divorce Financial.
As an advisor, you are in a position to provide financial information and refer clients to other professionals.
There are many resources available online for you and your clients, says Sachs. She recommends Collaborative Practice Toronto, an organization made up of a number of professionals who help people separate or divorce without going to court.
Remember, you cannot provide legal advice or make recommendations about what the clients should receive financially.
>Ask about their situation
Sometimes clients may not tell you immediately that they are going through a divorce, says Sachs.
If you begin to notice a change in your clients that suggests a major shift in their priorities, don’t be afraid to ask what is going on. These changes could show up in the instructions that they are giving or in their requests for information.
>Talk to your clients
Take time to talk about your clients’ financial concerns regarding the divorce.
Every situation and client is unique so it’s important that you sit down and talk to them about what is happening, says Jim Doyle, an advisor and CDFA with Investors Group in Vancouver. Discuss how the clients will proceed with their finances or if they have any concerns or fears regarding their financial situation.
>Be patient
Sometimes people want to divide everything up right away but it’s best to be patient, says Doyle.
Many people want to do things a little too quickly but there is a process that needs to be followed, says Doyle. All of the advisors and professionals involved should remind the clients to calm down and let the process unfold in an orderly manner.
>Refer them
If you feel you cannot work with your clients without a conflict of interest you can refer them to a Certified Divorce Financial Analyst, says Hawley.
A CDFA is someone who comes from a financial planning, accounting or legal background and provides expertise on the financial issues that arise in the context of divorce, according to the Institute for Divorce Financial Analysts website. The CDFA can become part of the divorce process and can provide litigation support for the lawyer and client on issues such as taxes, the short and long-term effects of dividing up property and pensions.
IE