Our Case Studies
Rebuilding Financial Independence After Divorce
The Situation —
Navigating a Financial Settlement
Divorce is one of the most significant financial transitions a person can face, and that was exactly where this client found herself. At 55, with two children and one still at university, she had spent a long marriage in a household where her husband was the primary earner. When that changed, her most pressing concern was simple but profound: would the money she received through the settlement actually be enough to support the rest of her life?
We were introduced through a family law firm we work with regularly. From the outset, we worked alongside her solicitor, using cash flow modelling to show clearly how different settlement outcomes would affect her long-term financial security. That analysis gave her legal team the evidence they needed to negotiate a fair result.
The Solutions —
Building a Sustainable Income From Scratch
Once the settlement was agreed, we got to work structuring her finances properly.
A significant part of what she received was a pension sharing credit. We advised on how to implement this and took the opportunity to consolidate her existing pensions into a single modern plan, one that was simpler to manage and better suited to where she is heading.
For immediate income, we built a partial pension drawdown strategy that combines regular tax-free withdrawals with taxable income kept within her personal allowance. This keeps her income tax-efficient while she continues to receive spousal maintenance payments over the coming years.
Alongside that, we built a diversified investment portfolio spread across multiple tax wrappers. Her ISA allowance is used in full each year, with enough held in an investment account to keep funding those contributions for several years ahead. An investment bond was also put in place to provide additional income flexibility once the maintenance payments eventually come to an end.
Before working with us, she had been choosing investments within her pension herself, without a clear strategy and with little confidence she was making the right calls. That has now changed. A structured, diversified portfolio with controlled risk levels, backed by ongoing cash flow forecasting, gives her a clear picture of how her assets can support her over the long term.
The Results —
Confidence in What Comes Next
She now has a financial plan that is built for both stability and flexibility as she steps into this new chapter.
Her income is structured tax-efficiently, drawing on pension withdrawals and maintenance payments in a way that makes the most of her allowances. Her pension arrangements are simplified and consolidated. Her investments are diversified and aligned to her goals. And when maintenance payments end, her investment bond is ready to fill that gap.
More than the numbers though, what mattered most was the confidence she gained. At a time of real personal upheaval, knowing that her finances were organised, properly structured and genuinely designed to last gave her the reassurance she needed to move forward.
Disclaimer: These case studies are provided for illustrative purposes only. They are based on typical financial planning scenarios and modelling undertaken as part of our advice process. While inspired by real client situations, details have been anonymised and, where appropriate, adapted or combined to protect confidentiality. They should not be regarded as actual client outcomes or as a guarantee of future results. Individual circumstances, tax treatment and investment performance will vary.
