How we work with clients

Party receiving large divorce settlement

Maria is in her early 50s, has three children and has recently been awarded over GBP56m in a divorce settlement, including GBP14m in investments, plus art and properties in London and Tuscany. Not financially astute, by her own definition, her situation is further complicated in that she is not UK-born and there are uncertainties about her domiciled status.

Maria’s goals:

• Create GBP500,000 in annual income to maintain her family’s standard of living and cover her obligations worldwide.
• Investigate all options to minimise the disposal of assets, to ensure a maximum of these are passed down as her legacy to her children and wider family overseas.
• Resolve ambiguities in her tax position, property and possessions internationally.

Our recommendations

• After discussion with our Law and Wealth Planning teams, her portfolio was invested in an offshore bond with a target return of CPI +5% p.a. Capitalising on her plan to move overseas for four years, she will be eligible for time apportionment relief on the policy whilst outside the UK.
• Stonehage Fleming Art Management reviewed the art portfolio and developed a clear strategy for its funding, management and protection.
• Our Property team advised and represented the client in selling the London property, finding a smaller main residence (about GBP8m) and a pied-a-terre as an investment for the children.

Outcomes (to date)

• As a result of partnering with us, she has realised net cash of GBP10m, providing security and income far in excess of her targeted annual requirements.
• A secure, long-term plan has been created which factors in intelligent tax and legal mitigations relating to her ‘international’ status, even if she moves overseas.
• Maria now has peace-of-mind in relation to the safeguarding of her family legacy, with our recommendations incorporating succession planning, asset structuring and next generation education.
• Her property portfolio has been restructured to suit her needs, and her art collection protected.

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.