Case study: Divorcing and concerned your adviser favours your husband?

Key takeaways

Understand any conflict of interest: If you and your spouse have one financial adviser, always make sure to question whether that person is taking both of your priorities into account and is not favouring one side.

Understand your wealth: Never lose sight of how much you are contributing to the financial resources within a marriage and make sure your adviser gives you all the information you need.

Consider independent representation: If you think your interests are being neglected by your adviser, investigate getting your own independent representation.

What’s your background?

Sarah, 46, is a successful marketing executive and mother of two. For the past fifteen years, she and her husband, James, a senior partner at a private equity firm, have managed their significant household wealth through a boutique wealth management firm. The relationship was originally established by James’s family, and the lead adviser, Mark, has become a close personal friend of James.

The couple’s portfolio is complex and valued at approximately £8.5 million. It comprises a mixture of joint brokerage accounts, individual ISAs, several offshore trusts, and James’s substantial carried interest and pension schemes. Sarah also has a smaller, separate inheritance that was folded into the firm’s management five years ago for what she was told was administrative purposes.

Throughout the marriage, Sarah was a passive participant in biannual reviews. James typically led the discussions on risk appetite and asset allocation, while Sarah focused on the immediate cashflow needs for the family’s lifestyle and school fees. Because the household was harmonious, Sarah never questioned the lack of individualised reporting for her specific assets. She viewed Mark as the family’s adviser, a neutral professional dedicated to the holistic growth of their collective estate.

What’s the problem?

As the marriage began to deteriorate and divorce seemed more likely, the dynamic shifted. Sarah realised that while her name was on the letterhead, her voice had never truly been part of the strategy. As she prepares to untangle fifteen years of co-mingled finances, she finds herself at an informational disadvantage. She is a high earner with a sophisticated career, yet she feels like a junior partner in her own financial life, now facing a legal process where her primary source of financial data is a man who plays golf with her soon-to-be-ex-husband every Sunday. The core of the problem is a conflict of interest.

Sarah’s concerns began when she requested a valuation of her specific inheritance and a projection of her solo retirement needs. Mark’s responses were delayed and often copied in James, despite the sensitive nature of the request. This breach of perceived confidentiality made Sarah feel that her husband was being tipped off to her legal strategy.

Furthermore, Sarah suspects that the risk profile of the joint accounts is heavily weighted toward James’s high-risk preferences, which may no longer suit her as she moves toward a future where she will be solely responsible for her capital. The adviser’s loyalty is divided. He cannot advocate for Sarah’s need for liquid, low-volatility assets for a housing deposit without simultaneously advising James to sell positions that he might prefer to hold for long-term growth.

Sarah feels isolated, fearing that any financial disclosure she makes to Mark will be framed in a way that benefits James’s position in the divorce settlement. She is no longer a client. She is a secondary stakeholder in James’s financial ecosystem.

What’s the solution?

The solution requires a clean break. Sarah must appoint her own financial adviser who has no prior professional or personal ties to James. First, Sarah must notify the current firm in writing that a conflict of interest has arisen and that she is rescinding their authority to manage her individual assets (such as her inheritance) and her share of joint accounts, pending a legal split. This freezes the influence of the current adviser over her future.

The new adviser must be a specialist in divorce financial planning. Unlike a general wealth manager, a divorce specialist focuses on the shadow of the settlement. Their role is not just to pick stocks, but to perform a forensic analysis of the existing marital assets. They will work alongside Sarah’s legal team to:

Value the estate: Identifying non-obvious assets like pension credits, deferred bonuses, and the tax implications of liquidating joint holdings.

Model future scenarios: Using cashflow modelling to show how different settlement offers will impact her lifestyle in the run up to retirement.

Establish a new risk profile: Re-evaluating Sarah’s personal risk tolerance, which is likely distinct from the family profile Mark had on file.

Critically, the new adviser acts as a financial translator. They take the complex data provided by Mark’s firm and vet it for Sarah’s benefit. This removes the emotional weight of feeling manipulated by a biased professional and replaces it with data-driven advocacy.

How will it improve things for you?

Taking this step transforms Sarah from a vulnerable participant into an empowered decision-maker. The primary improvement is informational parity. By having her own adviser, Sarah no longer has to rely on James’s friend to tell her what she is worth. She gains a clear, objective view of the marital pot, which is essential for a fair negotiation.

Psychologically, the move provides immense relief. The anxiety of who knows what is eliminated. Sarah can speak freely about her fears, her goals for the children, and her desire for security without worrying about her words being leaked or used as leverage. This privacy is the foundation of a true fiduciary relationship.

Financially, the long-term outcomes are significantly better. Divorce settlements often look fair on paper but are ‘tax bombs’ in reality. An independent adviser will ensure Sarah isn't left with ‘dry’ assets, like a house she can’t afford to maintain, while James keeps ‘liquid’ assets, like a pension or brokerage account.

Ultimately, Sarah moves from a joint identity to an independent one. She enters her post-divorce life with a financial roadmap tailored specifically to her longevity, her tax status, and her personal goals. She is no longer the wife of the client, she is the boss of her own financial future, supported by a professional whose only loyalty is to her. Sarah’s case serves as a reminder that neutrality is often an illusion in high-stakes transitions and that the best way to serve a client in conflict is sometimes to help them find their own way out.

At W1M, we have decades of expertise helping women become financially independent following a divorce. If you would like to speak to one of our advisers, you can contact us here and we would be more than happy to help.

Glossary of key terms

Informational parity: A state where both parties in a divorce have equal access to all financial data.

Fiduciary duty: A legal obligation for an adviser to act solely in the best interest of their client.

Cashflow modelling: A tool to forecast future income and expenses to ensure financial sustainability.

Risk profile: An assessment of an individual's willingness and ability to take investment risks.