Wealthiest adults do not financially plan for marriage
Only one in five of the UK’s wealthiest adults discuss financial planning ahead of marriage, according to fresh research.
Among a survey of 500 UK adults, who have at least £1.5 million in investable assets or total assets of £15 million, 93 per cent agreed planning for unexpected life events, such as divorce, was crucial for wealth management.
However, only 20 per cent felt it was important to financially plan ahead of marriage.
Simon Prescott, head of wealth planning at Nedbank Private Wealth, which conducted the study, said the figures did not “come as a surprise”.
“Wealth doesn’t always equal financial security,” he told CityAM.
“I think most people might look at people who perhaps have wealth and think these things might be covered already.”
He added: “There is a taboo around money – I think money is quite stressful for people and talking about money is quite stressful, and before you go into a relationship it certainly can feel quite cold.”
Prescott added it was important for those with “objectives for your money and aspirations” to ensure “a bespoke plan is in place to ensure that your goals are actually met”.
Under half of the high net worth individuals in the survey said they would consult a wealth adviser before initiating divorce proceedings, and just over a third said they would during a divorce.
Clinical trauma and divorce specialist Adele Theron told CityAM: “It’s really important to keep the emotional side of divorce separate from the business side of divorce.”
Theron added a third-party can help ease “the burden on mental health while helping them take the best course of action for their finances”.
She urged those going through divorce not to make “important decisions, and potentially material and life-altering decisions emotionally”.
High net worth family lawyer Mary-Ann Wright told CityAM it was important to consider prenups not only personally but for “any adult children who may be contemplating marriage”.
“If you have paid for your child’s wedding, you do not want to end up paying for their costly divorce in the future, so taking advice on how best to protect family wealth is vital,” she added.
Wright added her clients often “do not realise the extent of the financial disclosure covering all classes of assets that they are legally required to provide on divorce”.
“They should start by gaining a full overview of everything they might have to disclose and potentially share with their partner should they separate,” she said.