Some 30 per cent of people who divorced in the past 10 years have seen their personal wealth fall, a study has revealed.
Research by Investec Wealth & Investment UK, highlighted the need for wealth management advice as 36 per cent of male respondents said their personal wealth decreased as a result of their divorce, compared to 24 per cent of women.
It also found recovering from divorce can be a lengthy process with 20 per cent saying it took three years to recover while 14 per cent admitted they were still not back on their feet.
More than two out of five respondents admitted they had stock market investments, including pensions and Isas, but only one in five consulted a wealth manager during their divorce.
Since going through divorce 16 per cent of respondents also said inheritance tax advice had become more of a priority for them.
Faye Church, senior financial planner at Investec Wealth & Investment, said: “The study shows that for many, divorce leads to their personal wealth suffering and underlines the need for proper financial advice during the process.
“It is important to know the implications of keeping the family home versus a lion’s share of the pensions versus cash on deposit or investments; all have their advantages and disadvantages when it comes to liquidity, access and taxation. This is where taking proper financial advice can add the most value and potentially provide a better outcome”
This comes after research from Legal & General Home Finance found one in 13 divorcing couples over the age of 50 would turn to equity release to settle their finances.
However only 12 per cent of couples said they would seek financial advice when they divorce but 32 per cent did say they would be more likely to seek it in the future after divorcing.
alina.khan@ft.com
