High net worth divorcees are savvy about money and see themselves more as victors than victims of divorce, according to Millionaire Corner research.
Financial expertise helps high net worth women achieve a better life after a divorce, according to a new Millionaire Corner study that focuses on the impact of divorce on affluent women.
High net worth divorcees represent 9 percent of U.S. households with a net worth of $5 million to $25 million not including primary residence. High levels of wealth, combined with a strong financial acumen, appear to insulate these wealthy women from the potential downsides of divorce. According to the most recent U.S. Census data, women are twice as likely as men to suffer financial hardship as a result of divorce.
In contrast, most wealthy divorcees (62 percent) say they are better off financially since their divorce, according to our newly published e-zine called Women in Transition. More than three-fourths (77 percent) say they are better off emotionally, too. Knowledge and enjoyment of investing appears to play an important role in this improved sense of well-being.
Nearly 60 percent of high net worth divorcees describe themselves as “fairly knowledgeable” about investments, and another 14 percent say they are “very knowledgeable.” (Traditionally, women report lower levels of investor confidence than men, and divorced women are no exception to that trend. While 59 percent of men say they are “fairly knowledgeable,” 30 percent say they are “very knowledgeable.”)
Armed with knowledge, high net worth divorcees are not afraid to take risks. The majority (55 percent) feels it’s more important to grow investments than to preserve wealth. More than two-in-five say they enjoy investing and do not want to give it up, and about 20 percent handles all financial matters on their own. About one-third (34 percent) consults an advisor for a specific need, but remains in charge of their finances.
The most recent U.S. Census data shows that 41 percent of first marriages end in divorce, and the rate goes up significantly for second and third marriages. By that measure, too, high net worth women are beating the odds and enjoy higher-than-average marriage rates than less affluent women.