Act now, thrive later: Why your female clients must prioritise post-divorce financial planning

Going through a divorce can be a time-consuming, expensive, and emotionally challenging experience. Indeed, your clients may breathe a sigh of relief once they receive their decree absolute and know that the months of admin and financial negotiations are over.

However, a divorce is only the beginning of a new journey. Once the dust settles, your clients face another challenge – figuring out what the future looks like from here.

This could be a daunting prospect for many women who may feel uncertain about how to balance ongoing expenses with future costs, such as retirement and their children’s university education.

Yet, if your clients put off planning for these important outgoings, they might jeopardise their long-term financial security and risk having insufficient funds to achieve their goals.

Keep reading to find out why it’s crucial that your female clients start preparing for their future as soon as possible post-divorce and learn how lifestyle-based financial planning could help.

Early planning allows women to take control of their financial security

During their divorce, your clients probably dealt with many urgent financial matters, such as paying for childcare and keeping up with mortgage repayments. For many women, this is an exhausting and stressful time, and they may not be in a rush to take on more financial planning.

However, there are some big questions your female clients need to address once their divorce is finalised. Such as:

• Can I still afford to retire when I planned?
• Will I be able to help my children with university costs?
• How do I balance living for today with saving for later?
• What if I need care in the future – how would I pay for it?

These may feel like issues that can be bumped down the to-do list, especially if your clients have been through a lengthy or difficult divorce.

However, planning for such future costs as soon as possible is essential because women often face specific financial challenges following divorce, including:

• Lower pension savings – On average, women have less in their retirement fund than men, often due to career breaks or part-time hours for childcare.
• Longer lifespan – Women generally live longer than men and as such, may need to build more wealth for their retirement and later-life care. As such, your female clients may have a greater risk of outliving their savings than men.
• Lower income and earning potential – According to the most recent data from the Office for National Statistics (ONS; 29 October 2024), the gender pay gap is 7%. Women who have taken time out of their careers to care for children or other family members may have a higher risk of seeing their earning potential fall.

As such, if your female clients delay planning for long-term expenses following divorce, they could lose critical opportunities to make up for lost ground.

Read more: Why divorce can play a major part in exacerbating pension inequality in the UK

In contrast, women who start engaging with their financial future immediately post-divorce may have more control over their financial wellbeing. They could also avoid common pitfalls such as insufficient retirement funds or unexpected later-life care costs.

Lifestyle financial planning can help women map a path forward after divorce

I specialise in lifestyle-based financial planning, which is a personalised, holistic approach that helps women shape their futures following divorce.

This might include helping your clients to:

• Plan for later-life care costs or downsizing
• Understand their pensions and the income these could provide
• Explore ways to invest or grow their financial settlement wisely
• Ensure they pass their estate on in the most tax-efficient way
• Make sure their children are supported without compromising their security and goals.

Your divorced clients have already been through a major life change. I can help them turn the page and make informed, confident decisions about what comes next.

With ongoing, regular reviews, I can also ensure that your clients’ financial plan adapts to the changing circumstances that often follow a divorce, such as career shifts and changes in childcare needs.

Lifestyle financial planning is a powerful strategy for creating a meaningful roadmap that allows your female clients to approach their financial future with confidence post-divorce.

Get in touch

When it comes to planning for future costs post-divorce, it’s never too early to start – but it can be too late to wait.

If you’d like to know more about how I can support your divorced female clients with all their financial planning needs, I’d love to hear from you.

Please contact me at lottie@truefinancialdesign.co.uk or call 0330 088 9138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.