What is Cash Flow Modelling and How Can It Help During Divorce?
When you are facing big financial decisions, it is not always easy to picture how things will look in the months and years ahead. Cash flow modelling is a practical tool that helps you see your financial future more clearly, so you can make better choices and feel more confident about your next steps.
What is Cash Flow Modelling?
Cash flow modelling is a way of forecasting your income, expenses, assets, and debts over time. It creates a visual plan that shows how your money might flow in and out in the future.
A financial adviser gathers details about your current situation and your goals, and then uses specialist software to build a projection. This helps you see if you are on track to meet your goals or if you need to make changes.
How is Cash Flow Modelling Used?
Cash flow modelling is often used by people planning for retirement, investing for the future, or making major life changes. It can help answer questions like:
Will I have enough to retire at my preferred age?
Can I afford to buy a new home or start a business?
How would a change in my income or expenses affect my long-term plans?
The model can show what might happen in different scenarios, such as living longer than expected, facing a market downturn, or receiving an unexpected windfall. This helps you prepare for uncertainty and make informed decisions.
How is Cash Flow Modelling Used in the Divorce Process?
Divorce can turn your finances upside down. You may be moving from two incomes to one, dividing assets, and facing new expenses. Cash flow modelling is especially helpful in this situation because it helps both parties see what their finances could look like after the divorce.
During the divorce process, a financial adviser can use cash flow modelling to:
Show the impact of different settlement options, such as how dividing the house, pensions, or other assets would affect your future finances
Help you work out a realistic budget for your new circumstances, taking into account new living costs and possible changes to your income
Test different scenarios, such as going back to work, supporting children through university, or moving home, so you can make decisions with greater confidence
This approach helps make the negotiations fairer and more transparent. It can also give you peace of mind, as you can see clearly what life might look like after the divorce and avoid unexpected surprises later on.
Final Thoughts
Cash flow modelling is more than just a spreadsheet. It is a valuable planning tool that can help you feel more in control during a time of change. Whether you are just starting to think about your finances or already deep in the divorce process, a good financial plan can make all the difference. If you want to know more about how cash flow modelling could help you, reach out for a chat. We are here to help you move forward with clarity and confidence.
Jamie Lowe- Chartered Financial Adviser and Director of True Self Wealth Ltd
Get in touch: 07469 712299 Jamie.Lowe@SJPP.co.uk
To find out more, visit www.trueselfwealth.co.uk
To book an appointment, visit www.calendly.com/jamie-lowe-tsw
Follow me on Facebook, Instagram or LinkedIn
True Self Wealth Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website http://www.sjp.co.uk/products
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
SJP Approved 15/7/2025
