Once Bitten Twice Shy? Divorcees Far Less Likely To Discuss Finances With New Partners, Research Reveals

A new Women and Wealth report has revealed that divorced women are much less likely to discuss their finances with a new partner, instead turning to their children and friends to share their money worries.

The report features a YouGov survey of 501 wealthy women with investible assets of over £100k commissioned by law firm Irwin Mitchell which found that only nine per cent of divorced wealthy women discuss their personal finances with their current partner. Women who were married or in a civil partnership were far more likely to discuss their finance with their partner (55%). The results also showed divorced women were far more likely to discuss finances with their children (50%) and their friends (23%).

Around 42% of marriages end in divorce, with a growing number of people divorcing in retirement. The number of over-60s legally separating has doubled since 1993, and the number of divorces in marriages of over 30 years remaining the highest by far in 2022 according to data from the ONS.

The research also revealed women have tried to educate themselves about some aspects of financial independence, particularly around Wills (55%) and pensions (52%). However only 20% had learned about Tax Planning and 63% of respondents did not have a Lasting Power of Attorney in place, something specialist private client lawyers at Irwin Mitchell say could cost them in future if they were to lose mental capacity through injury or illness.

Respondents were most confident about making decisions on their savings (70%) and the least confident about the use of Trusts in protecting wealth (4%). Around a third of women were confident they knew about Lasting Power of Attorneys (LPAs) (35%) and Wills (31%) but less understood Pensions (26%) and retirement planning (20%).

Expert Opinion

"This survey shows just how life experiences can really shape the way we talk about money and who we trust with our financial information. In many ways it’s not surprising to see that divorced women who have built up some wealth are playing their financial cards close to their chest, especially with new partners. And while it’s encouraging that many wealthy women are learning about financial independence, it is still a concern that many do not know about some key elements of wealth protection such as power of attorneys, using Trusts and things like retirement and tax planning.

”Seeking specialist advice on their tax, trusts and estates will help to protect and grow their wealth either for themselves or the next generation. Talking about money and assets can be difficult and emotional, but we're here to help people protect what's theirs and feel confident so that they can enjoy the moments that matter with loved ones."
Ros Bever, Private Client Managing Partner

Irwin Mitchell has recently launched a women-led initiative called “The Female Voice” which aims to bring women together from professional networks and beyond. The firm was recently named in the top 25 best workplaces for women in the UK, the highest law firm on the list. The firm has a reputation for being female friendly with the highest percentage of partners (53%) being women,  of all the top 50 law firms.