Unique financial challenges your divorced female high net worth clients may face

The number of high net worth (HNW) women in the UK is rising. Moreover, research reported by FTAdviser (10 December 2024) has revealed that 67% of HNW women say their current wealth was generated from a divorce.

However, your affluent divorced female clients may face certain unique financial challenges that could make it harder for them to make the most of their wealth. Keep reading to learn more.

Higher levels of financial anxiety

According to Professional Paraplanner (22 April 2025), a new report has revealed that 40% of HNW women feel anxious about their finances compared to 35% of HNW men.

The findings suggest this discrepancy may be due to the conflicting demands many women face, such as caring for their children and other loved ones while managing a career. This could be especially true for newly divorced women who are adapting to a single-parent household.

A lack of clarity, understanding, and awareness of their financial situation could also play a role – 12% of female respondents were unsure of the current value of their pension pots compared to just 7% of male respondents.

Both the emotional burden of juggling multiple responsibilities and the uncertainty of not knowing where they stand financially could contribute to higher levels of anxiety in your HNW female clients.

Poor preparation for inheriting significant wealth

The Great Wealth Transfer is underway, and Vanguard (18 September 2024) has reported that $18.3 trillion is expected to be passed on globally by 2030. £7 trillion is set to be transferred between generations in the UK alone.

This is largely due to longer life expectancies, which have allowed “baby boomers” (those born between 1946 and 1964) to accumulate more wealth than previous generations.

Women are likely to be the biggest beneficiaries of the wealth being passed down. Yet, a UBS survey has found that affluent women feel unprepared for the Great Wealth Transfer.

The findings show that one-third of women who inherited assets from their parents had no prior discussion with them about their inheritance. As a result, 80% of female inheritors faced challenges managing the process, and more than half uncovered a financial “surprise” – such as being shocked by the amount of taxes owed or how long it took to receive their inheritance.

Risk of wealth depletion

According to the Legal & General (2 April 2025), women see their household income cut in half in the year after a divorce. In comparison, men’s income drops just 30% over the same period.

Even women with substantial assets may experience a rapid depletion of their wealth after their marriage ends. This could be exacerbated by poor financial literacy, which could result in budgeting and investing mistakes.

Moreover, divorces between HNW couples often involve complicated assets, so without professional financial advice, your female clients may not achieve a fair settlement.

Indeed, research published by IFA Magazine (22 May 2024) has revealed that men are more than twice as likely to conceal assets – around 33% of men hid some of their wealth compared to 15% of women.

Low financial confidence

The number of ultra high net worth (UHNW) women – those with wealth of $30 million or more – is rising. According to WealthBriefing (20 September 2024), women made up 11% of the global UHNW population in 2023 and 13.3% of billionaires, compared to 6.5% and 9% respectively in 2010.

However, new research from the charity National Numeracy (21 May 2025) has found that a financial confidence gap persists between men and women – just 77% of women feel confident making financial decisions compared to 88% of men.

Some women may feel they lack the knowledge to manage their wealth effectively following a divorce, especially if their former spouse or civil partner previously controlled their shared finances.

Unfortunately, low financial confidence could mean that your divorced HNW female clients miss opportunities to capitalise on their wealth, which could hamper their progress towards their goals.

Underutilisation of financial protection

According to Health & Protection (7 March 2025), 65% of single mothers have no financial protection at all.

While your HNW clients may have a substantial financial buffer, they are likely not immune to the consequences of losing their job or taking a career break to care for children.

Without adequate financial protection in place, divorced HNW women may struggle to maintain their lifestyle and provide security for their dependants in the face of an unexpected life event, such as being diagnosed with a critical illness.

Additionally, if they are reliant on spousal or child maintenance payments, they could lose this important source of income if their ex-spouse or partner dies. In contrast, by taking out insurance on their ex’s life, your client could safeguard this financial support.

Read more: 4 compelling reasons to prioritise financial protection if you’re a divorced woman 

I can help your high net worth female clients take control of their wealth

As a financial expert who specialises in supporting divorced women, I can help your female HNW clients navigate the unique wealth management challenges they may encounter.

Through patient education, emotional support and technical guidance, I will empower your clients to take control of their finances, both immediately after divorce and in the long term.

Get in touch

If you’d like to know more about how we can work together to support your divorced female HNW clients to make the most of their wealth and achieve their goals, 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 tax planning.

Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

APPROVED BY 2PLAN WEALTH MANAGEMENT ON 18.07.2025