Investec Study Finds New Female Clients Need Advice After Divorce

A new study by Investec Wealth & Investment found that an increasing number of women are seeking financial advice, with the largest factor attributed to a rise in divorces.

According to the research over 51% of financial advisers attributed the rise in female clients to divorce, with 19% stating female entrepreneurs being more successful in business were another reason and 35% arguing the rise was due to the death of a spouse.

The study also noted how women are increasingly on a par with their husbands in control over matrimonial assets, with 27% of 2017 clients taking on joint responsibility for finances in comparison to the estimated 23% from 2012.

With family case law becoming increasingly more complex, plus the traditional roles in a family being upturned as women often equal or surpass their partners’ income, Family Law experts at Irwin Mitchell Private Wealth say the increase was inevitable.

There are recent high-profile examples of how matrimonial finances are becoming increasingly nuanced in case law. In the 2017 Sharp v Sharp case, a City trader appealed against the 50:50 financial split of £5.45m which awarded £2.7m to her husband. The Court of Appeal considered it relevant that they had split restaurant bills and household utility bills between them, the husband had not been privy to the details of the bonuses received by the wife, and the wife had gifted three cars to the husband. In light of this, the husband’s award was reduced to £2m.

The case of Sharp v Sharp highlights how matrimonial assets may be divided unequally in certain circumstances, though it is important to note the couple’s circumstances – they had no children and were married for the relatively short time of six years.

Expert Opinion

“We’re not surprised to see more women taking financial advice due to divorces and I’d fully anticipate seeing more women seeking advice from financial bodies in the future. What with an increasing number of assets being held jointly or in their own name, it is no longer always the case that family assets should be split down the middle.

“In many cases the needs of each party will remain the overriding factor and the court will be concerned to ensure that those are met. However where there is or is likely to be a surplus, it would be wise for each partner to protect their interests.

“A pre or post-nuptial agreement can clarify how assets should be dealt with on relationship breakdown, and a specialist family lawyer can give guidance on how someone’s particular circumstances may be seen by a court.” Ros Bever - Partner