Chartered Financial Planner
Saltus Partners LLP
- High net worth individuals (HNWIs) are less likely to be divorced than the general population
- But 1 in 5 admit they have ‘delayed’ a planned divorce due to the cost
- One in 50 HNWIs even say the cost of divorce is their ‘single biggest worry’ – above their health, their children’s wellbeing and overall financial security
- Wealthy women are more likely to delay divorce than wealthy men
January has long been dubbed ‘Divorce Month’, and new research from wealth management firm Saltus reveals a striking surge in online searches related to ending a marriage over the festive period.
After exploring Google search trends, Saltus found that searches for ‘I want a divorce’ and ‘cheap divorce’ rose dramatically between December and January. With numbers for both terms indexed from 100 at their peak on January 4th, having climbed there from 0 on December 1st and 87 and 75 respectively on Christmas Day.
Similarly, ‘DIY divorce’ reached its peak search interest on New Year’s Day, and ‘quickie divorce’ peaked on New Year’s Eve (1). These statistics highlight how the stress of the festive season – and the promise of a fresh start in the New Year – can act as a tipping point for many couples.
But when it comes to high net worth individuals (HNWIs), the decision to divorce can become a lot more complicated – and data suggest they could be putting it off as a result.
HNWIs are five times less likely to be divorced.
According to ONS data, 7.1% of the general population are divorced – rising to 11% amongst over 45s (the average age for divorce). But amongst high net worth individuals this figure drops to just 1.3%, and 5% of over 45s.
The Saltus Wealth Index surveyed 2,000 people with assets of more than £250,000, and one in five married respondents said that they had delayed getting divorced due to the due to the cost of living crisis, while more than one in four (28%) say their family members have.
Amongst respondents who are already divorced, 27% say they ended their marriage later than planned as a direct result of the cost of living crisis, while 34% say at least one of their adult family members delayed their divorce for the same reason.
Furthermore, more than 1 in 50 HNWIs admit that their single biggest worry is ‘being able to afford a divorce’ – above their health, their children’s wellbeing and overall financial security.
Alex Pugh, Chartered Financial Planner at Saltus said: “High profile individuals face particularly complex challenges during divorce proceedings. With significant wealth at stake, there is an increased risk of hidden or concealed assets, as well as issues over what should and should not be included in a settlement, making it difficult to determine who is entitled to what, and creating what can be a very messy – and expensive – process.
“For example, around seven in ten of divorcing couples overlook sharing pensions, which, along with property, tend to be the most valuable asset. And it is often the woman that loses out.
“This is because in many cases the husband was the major breadwinner and has built up significantly more pension savings than the wife who has taken breaks and a cut in earnings to take on more family caring responsibilities. This is especially the case if the pension in question is a defined benefit scheme as their value within divorce proceedings is not just calculated on monetary value.
The data also suggest that while, overall, women are more likely to file for divorce than men – according to the ONS almost two thirds of petitions for divorce come from women. But amongst wealthy couples, women are more likely to delay divorce than men, with 21% saying they have held off initiating proceedings vs 19% of men.
“It is critically important to understand the emotional and financial challenges that accompany divorce, particularly for those with significant wealth. Over the years we have carried out countless pension sharing orders and are regularly called upon to help clients prepare for a fresh start. Getting the right advice on everything from the valuation of assets for settlement, understanding the tax implications of divorce or reviewing your investments and protection post-divorce is incredibly important to ensure the best possible, and fairest, outcome through a difficult period.”
Further information
About Saltus Wealth Index Report
- The sixth iteration of the Saltus Wealth Index Report is released today (24th September 2024).
- The research sampled 2,000 UK respondents (aged 18+) who have £250k+ of investable assets.
- Research was conducted by Censuswide (Censuswide abides by and employs members of the Market Research Society, based on the ESOMAR principles).
- This research was carried out online during August 2024.
(1) Day i want a divorce diy divorce quickie divorce cheap divorce high net worth divorce
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31/12/2024 62 0 100 0 0
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About Alex Pugh
Alex has experience partnering with high net worth individuals, business owners and families interested in intergenerational planning. Seeking first to understand her clients’ aspirations to gain a deep understanding of what they hope to achieve, she designs tailored plans with her clients’ end goals at the forefront.
With expertise in cash flow modelling, Alex is adept at providing specialised advice to ensure her clients achieve their long term financial aims.
Her knowledge of investments, pensions, estate planning, and protection means she is well-versed in adapting plans over the course of her clients’ lives.
Alex has over a decade of experience working in finance, working for top tier institutions JP Morgan and HSBC. She has achieved the gold standard Chartered status and has completed the Certificate in Financial Wellbeing.
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