Wealth Management Services
Divorce Advisory Services
As your client's trusted advisor, you provide an invaluable resource during the difficult time of divorce. Learn how Wilmington Trust can augment the services you provide to your clients through our comprehensive divorce solutions.
Financial and planning solutions
We can help you address the many financial and planning considerations involved when your clients are facing divorce, starting with important first questions:
Our Private Banking team can help your clients establish new deposit accounts and can also assess if custom financing is needed for any larger expenses or to buy out an ex-spouse from any illiquid marital assets not susceptible to easy division in divorce. Custom credit can also provide a reliable source of funding for unforeseen expenses, real estate purchases, and business investments. Our team can evaluate your clients’ options and provide lending based on their unique assets—including specialty or illiquid holdings. Solutions to consider include:
- Marketable securities-backed lines of credit, including restricted and concentrated stock, which may be an especially valuable option to help preserve an underlying portfolio instead of selling at a time of crisis
- Bridge financing to help with a significant purchase
- Specialized asset-backed loans secured by partnership interests, fine art, yachts, and aircraft
- Residential and investment real estate financing, including lines of credit
Financial Planning Services
At this new juncture in your clients’ lives, it’s important to have a comprehensive financial plan that analyzes the changes in cash flows from assets received, alimony, changes in expenses, and others that are expected after the dissolution of marriage. By providing a comprehensive overview of the following factors, our financial planning team can help position you and your clients at the negotiation table to the best advantage, and balance their projected expenses while maintaining the lifestyle they seek:
- Cash flow planning for income and expenses
- Alimony/child support
- Asset sustainability study and portfolio risk analysis
- Tax situation review and appropriate planning
Estate Planning Document Review
Reviewing important estate planning documents is crucial so that your clients are confident they are providing for their chosen heirs, updating beneficiary designations, and naming new designees for health care and power of attorney documents. Some documents can be changed while divorce is pending, while others, typically, must wait until the divorce decree is issued. Documents to consider include:
- Will and revocable trusts (usually can be changed while divorce is pending)
- Power of attorney and health care directive (usually can be changed while divorce is pending)
- Retirement accounts and plans (usually can’t be changed while divorce is pending)
- Jointly named real estate and financial accounts (usually can’t be changed while divorce is pending)
- Authorizations to access digital accounts, including financial accounts, email accounts, social media accounts, etc. (usually can be changed while divorce is pending)
We can also act as a central repository for all planning documents, if desired.
When trusts are utilized to protect settlement payments, it is important to select a trustee who will be your clients’ fiduciary: A trustee whose first and foremost responsibility is to protect your clients’ best interests and those of their families. Wilmington Trust is and always has been a fiduciary whether acting as trustee or as investment manager. Our experienced personal trust team provides comprehensive administration services for current and future generations.
Business Valuation Review
The preparation of a business valuation is a lengthy and expensive process. Valuation reports can exceed one hundred pages in length and can be very difficult for even seasoned professionals to understand. For any business that has been appraised as part of the settlement process, our team can review the appraiser's valuation report and provide insights that may answer questions such as:
- Is the appraiser a qualified professional with experience and valuation credentials?
- Is the appraiser’s financial analysis of the company thorough and explained?
- Are the methods used appropriate and the reasons for their selection discussed?
- Is the value conclusion reasonable, based on the factors presented in the report?
When receiving a settlement, it’s important to be sure that both short- and long-term needs are met through the creation of a customized investment portfolio. Our team can tailor a portfolio based on parameters such as liquidity needs, time horizon, risk tolerance, and others. Our investment process is designed to manage risk, maximize tax efficiency, minimize investment costs, and diversify among asset classes, utilizing our differentiated portfolio planning software, Paragon®. Paragon is infused with deep economic and market intelligence from our economists and investment professionals. It has the ability to build in additional layers of risk to test the potential wealth outcomes of different portfolios, seeing how they stack up in challenging markets through its interactive “what-if” analysis, and comparing the results to those of a current portfolio.
Paragon is a portfolio analysis, risk assessment, and goal optimization tool. The Paragon report uses hypothetical examples in conjunction with forecasts for inflation, economic growth, and asset class returns, volatility, and correlation and provides you with general financial planning information and to serve as one tool in helping you develop a strategy for pursuing your financial goals. It is not intended to provide specific legal, investment, accounting, tax or other professional advice. For specific advice on these aspects of your investments, you should consult your professional advisors.
Insurance review is very important to be certain there is appropriate coverage, beneficiaries are current, and that the premiums are being paid. Your clients may also want to confirm that an ex-spouse’s settlement obligations are secured with appropriate life insurance, or potentially probe its value as a marital asset. We provide a detailed analysis of health, life, disability, and long-term care insurance, identifying what actions might be recommended, including reviewing policy ownership and beneficiary designations, and understanding who has responsibility for premium payments.
Higher Education Planning
Our team can establish projections and analytics helpful to the settlement process by delineating the future costs of college based on the ages of your clients’ children and the potential colleges under consideration. This data can be coupled with merit-based aid scholarship strategies and other financial aid analytics. Often, trusts can be designed and created specifically (or in concert with other goals) to fund education.
Prior to divorce, we can review any existing private foundations and charitable vehicles to be certain they are still in line with your clients’ goals and wishes. We can also explore potential charitable techniques that could be utilized in the settlement process to support philanthropy and help minimize taxes.
Collaborate with us to help guide your clients through the financial complexities of divorce. We will work together to explore the best options to position your clients for a successful financial future in the most sensitive and productive way.
There is no assurance that any investment, financial, or estate planning strategy will be successful.
The information provided herein is for information purposes only and is not intended as an offer or solicitation for the sale of any tax, estate planning or financial product or service or a recommendation or determination that any tax, estate planning or investment strategy is suitable for a specific investor. Note that tax, estate planning and financial strategies require consideration for suitability of the individual, business or investor, and there is no assurance that any strategy will be successful.