Nearly two-thirds of divorced women with at least $1 million in net worth say they are better off financially since their divorce, according to a new research study.
Highlights of the study, released today by Chicago-based research firm The Spectrem Group, claims that such women's financial well-being differs sharply from other divorced women, especially recently divorced women, who are twice as likely to live in poverty compared to recently divorced men, according to U.S. Census data.
In 2009, the latest year for which data is available, the U.S. Census Bureau reported that 22% of women divorced in the 12 months under study lived in poverty, compared to 11% of men divorced during the same period.
High levels of wealth, combined with financial acumen, seem to insulate affluent women from the financial hardships that often accompany divorce. Seventy-three percent of divorced millionaire women say they are knowledgeable or very knowledgeable about investments.
"In our face-to-face interviews, many wealthy divorced women told us that they feel they are better with money and investments than their former husbands," says George Walper, Jr., president of Spectrem Group.
Divorced millionaire women are less concerned about guarding their principal than men or widows. According to survey respondents, 45% say they are focused on protecting principal compared to growing their investments, but 51% of millionaire men and 58% of millionaire widows prioritize principal over growth. Just 17% of divorced millionaire women describe their investment approach as conservative, comparable to 15% of millionaire men, but far fewer than 31% of millionaire widows who say they invest conservatively.
"With nearly half, or 49%, of divorced millionaire women still working, many feel confident about their futures and their ability to continue building their wealth," Walper said.
The wealthy are somewhat less likely to be divorced than Americans overall. According to 2010 U.S. Census Bureau, 10.4% of people over 18 were divorced, while Spectrem Group has found that about 7% of millionaire households (net worth of $1 million to $5 million) and 9% of ultra high net worth households (net worth of $5 million to $25 million) are divorced.
For those who do divorce, millionaire women say being single provides both financial benefits and mental health benefits--77% say they're much better off emotionally since the divorce.
Spectrem Group, a strategic consulting firm specializing in the affluent and retirement markets, conducts monthly surveys with 1,500 wealthy investors on a variety of topics