British women are vulnerable to financial troubles in the event of a divorce because they are failing to get to grips with the wealth of their household.
Hybrid wealth manager Netwealth reached out to 3,876 adults in the UK to survey them about financial control.
Over the course of their relationships, the survey found 39% of divorced women regretted not maintaining greater financial autonomy while 37% kicked themselves for not having greater financial engagement.
Awareness
Three quarters (75%) of all women said they maintain a complete understanding of their personal finances over the course of a relationship.
But 30% do not believe they have a complete and accurate picture of their partner’s financial situation, and a similar number (28%) do not believe that they have an accurate picture of their joint wealth and financial situation.
Only 25% of divorced women said they had a complete understanding of their and their partner’s combined financial situation.
With two-in-five marriages ending in divorce, women are therefore leaving themselves financially vulnerable should their marriages fail.
Charlotte Ransom, chief executive of Netwealth, said: “We always encourage women to maintain financial engagement and awareness regardless of their marital status.
“While it’s encouraging to see the majority of UK women have a complete understanding of their personal wealth, by failing to extend this understanding to their partner’s finances and their total wealth as a couple, women are leaving themselves financially vulnerable and exposed in the event of a split.”
Retirement
The survey also found less than a third (29%) of divorced women in the UK have already saved or expect to save enough to achieve a comfortable retirement, compared to 45% of the wider female population.
Men fare far better than divorced women following a divorce, as 44% said they have already saved or expect to save enough to achieve a comfortable retirement.
| Confident in saving enough to secure a comfortable retirement | |
| Divorced women | 29% |
| Divorced men | 44% |
| All women | 45% |
| All men | 59% |
Source: Netwealth
Ransom added: “With divorce often occurring at the mid-point of women’s lives, in addition to the severe emotional drain, it can also be a financially disruptive event, particularly in terms of their retirement prospects.
“This is why financial advice and investment services that acknowledge and cater to unique financial challenges, such as in the event of divorce, are so crucial.
“With the right planning and appropriately priced investment services, women have the best chance to achieve their financial goals and restore their financial wellbeing.”
