Financial News

Millionaire women overcome fear of finance after divorce

Millionaire women investors claim divorce helped them overcome their fear of handling their finances and boosted their fortunes.

High net worth divorcees makes up 9% of US homes with a net worth of $5 million to $25 million, but where women from less wealthy backgrounds suffer financial hardship when a relationship ends, wealth and financial acumen helps richer women excel.

Nearly two-thirds of wealthy women (62%) said their finances had improved since divorcing, according to the report Women in Transition, published by web site Millionaire Corner.

They explained investment knowledge and enjoying money management added to their feelings of well-being as well as making them wealthier.

Almost 60% described their investment knowledge as “fairly knowledgeable” , while another 14% considered they were “very knowledgeable.”

Most women (55%) are also happy to risk their money, taking the view investment growth takes priority over preserving wealth.

Divorced women with high net worth enjoy investing and want to continue making money. Around a fifth (20%) self manage their portfolios and finances, while a third (34%) take professional advice but still make the final investment decision.

Just 16% of wealthy divorcees – one in six – regard themselves as adviser-dependent when making financial decisions.

“Traditionally, women report lower levels of investor confidence than men, and divorced women are no exception to that trend. While 59% of men say they are “fairly knowledgeable,” 30% say they are “very knowledgeable,” said the web site.

The most recent US census data shows that 41% of first marriages end in divorce, and rises significantly for second and third marriages. The figures also show that high net worth women tend to stay married longer than less affluent women.

Meanwhile, only two US women are on the top 10 list of self-made billionaire’s – TV’s Oprah Winfrey and former eBay executive Meg Whitman.

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