- Investec Wealth & Investment (UK) study shows financial settlements after divorce leave many disappointed
A survey of people who divorced in the past 10 years reveals one in four admit to not telling their ex-partner about the full extent of their wealth and assets during the break-up, new research from Investec Wealth & Investment (UK) shows.
The independent study by the company, which is part of Rathbones Group PLC, found 25% of those who went through divorce in the past 10 years kept some of their assets hidden from their ex-partner. Around a quarter (24%) hid £10,000 or more from them.
Men were twice as likely to conceal assets, the study found. Around a third (33%) of men kept quiet about some of their wealth compared to 15% of women.
The study, which spoke to 69 people who were divorced in the past 10 years, found finances are a major source of disappointment after divorce settlements. Around 36% say they were unhappy with their financial settlement while 17% believe their ex-partner was unhappy with the agreement on finances.
However more than half (54%) say they were happy with their divorce settlement while 61% believe their ex-partner walked away satisfied with the financial situation.
Failing to disclose wealth and assets during a divorce can potentially lead to jail sentences in extreme cases and will mean additional legal costs for the person who conceals money during the proceedings.
Investec Wealth & Investment (UK) is highlighting the need for couples to be open about finances as the latest Government statistics show a rise of nearly 10% in the number of couples divorcing a year in England and Wales to 113,505. The figures for 2021 show nearly one in five couples will divorce within 10 year of marriage and divorce rates per 1,000 of the married population are 9.3 for men and 9.4 for women.
Faye Church, Senior Chartered Financial Planner at Investec Wealth & Investment, said: “Finances are inevitably a major bone of contention in divorces as demonstrated by the numbers of people unhappy with their divorce settlements.
“However hiding money in a divorce is illegal and in extreme cases can lead to a prison sentence, so it is worrying to find that so many people hide money from their ex-partners during a break-up.
“Ultimately it highlights a wider issue of couples not keeping each other informed about their finances which can undermine efficient financial planning if people are concealing money from each other.
“It also raises the issue of one partner taking the lead on finances over the other, which we see all the time. This leaves the uninformed partner at a huge disadvantage if the couple split, or sometimes completely in the dark with regards to where their income will come from or how their financial affairs are structured if one partner dies.”
As one of the UK’s leading discretionary wealth management companies Investec Wealth & Management, part of Rathbones Group PLC, focuses on a relationship-based approach to Financial Planning and Investment Management with the purpose of making a tangible and meaningful difference to clients and their families. For more information on its services for individuals and their families Wealth management & financial planning services (investec.com)
