Well-off people who are married are, on average, £150,000 wealthier than those who are divorced, new figures suggest.
Analysis conducted by Handelsbanken Wealth & Asset Management (HWAM) has highlighted the high cost of marriage breakdown among the well-heeled.
According to HWAM, the average wealth of married affluent people is currently £780,405, compared to £629,826 for divorced individuals – a gap of £150,579.
The longer-term financial impact of divorce is getting bigger, HWAM’s study shows.
A decade ago the gap between married and divorced people was £121,378.
Married people were worth an average of £612,500, compared to £491,121 for those who were divorced.
The average age at divorce for men today is 46 and for women it is 43.
Wealth peak at 40-plus
Affluent people amass the most wealth in their 40s, HWAM’s figures show.
On average, they accumulate £148,000 between the age of 40 and 50, at a rate of £14,800 a year.
By contrast, for people in their 30s, average wealth increases by only £1,939 a year.
HWAM analysed UK Government data on the wealth of affluent people – those with household net financial wealth of more than £200,000 – and the impact of divorce over the 10 years until November 2020.
The wealth manager said: “The cost of divorce can be severe, driven partly by rising wealth but also by the average age at divorce.
“Over the past decade, the age has increased from 43 for men and 41 for women, as couples are increasingly getting married later.”
The average household wealth of a man at divorce currently stands at £691,525 – a £151,680 increase over the past decade, while for women it’s £515,948 and £145,978 higher over the same period.
Christine Ross, head of private office (north) and client director, HWAM, said: “Divorce has a huge impact on couples’ lives, quite apart from the emotional impact and the effect on families, with people having to split their wealth and in many cases buy new homes.
“Finances are clearly a major part of divorce and the long-term impact on average wealth at more than £150,000 illustrates the need to think through the issues and, where possible, take advice from someone independent who can help support both people and find a financial solution which works for both.”
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