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No matter how it occurs, divorce is almost always emotionally and financially challenging. But new research shows that the financial confidence of high net worth (HNW) women throughout the divorce process depends greatly on their level of involvement in managing household wealth while married.


Study shows that women who relied on their spouse to manage finances during the marriage faced more challenges during and post-divorce and that divorce settlement amounts were often less than expected.


Methodology

In Spring 2025, BMO Wealth Management engaged Schmidt Market Research to better understand HNW women’s financial confidence through their divorce journey. The study, The Confidence Gap: From uncertainty to financial clarity, the journey to rebuilding wealth after divorce, provides insights from high net worth women ages 30-70 and divorced in the last 1-5 years, aiming to deepen understanding about women's divorce journey, focusing on financial confidence, attorney satisfaction, and settlement satisfaction. The findings for this study are based on the views of 362 women, all of whom had investible assets of more than $1 million and got divorced within the last five years. The study also examined the role attorneys and advisors have in helping women improve their financial confidence.


We are thrilled to present the findings from this important study, reflecting our deep commitment to serving women in the divorce journey, and the family law attorneys who support them.”

– Amy Hale, Regional President, BMO Wealth Management


Key Findings

For respondents who deferred money management responsibilities to their spouse during the marriage, the study revealed that:

  1. Financial confidence plummeted during the divorce: Only 36% felt confident to manage their finances during the divorce, compared to 64% during their marriage. Conversely, those who shared money management responsibilities equally during the marriage were more likely (68%) to report that financial confidence remained the same during the divorce versus during the marriage.

  2. Financial confidence remained low post-divorce: Only half of respondents (50%) whose spouse was responsible for the finances during the marriage felt financially confident post-divorce. That figure was much higher (90%) for respondents who shared equal money management roles with their spouse during the marriage.

  3. It can take years to reach financial confidence after divorce: 39% of respondents said it took them more than 1 year to gain financial confidence after the divorce.

  4. Divorce settlements were lower than expected: When their spouse was responsible for pre-divorce finances, respondents were significantly more likely to report that their divorce settlement was lower than they expected

 

The takeaway? Women must be at the financial table.

The results indicate that women whose spouses made the wealth decisions at home experience the steepest drop in confidence, leading to scaled-back lifestyles and underwhelming settlements. In addition, women who lack financial confidence can experience more tension in their relationship with their divorce attorneys, requiring extra guidance and support to achieve fair outcomes. But the study also points to new possibilities and opportunities for those who seek out the right advice – especially from financial advisors. Working with financial advisors, the study found, helped divorced women regain confidence and establish long-term financial stability.

 


Financial confidence is directly correlated to one’s involvement in their household finances. Women who deferred money management to their spouse during marriage were at a disadvantage upon divorce. It’s critical for women to stay involved in their household’s finances and ensure they have a seat at the table for important financial decisions, such as spending, retirement saving, investing and estate planning.”

– Amy Hale, Regional President, BMO Wealth Management


The study provides several lessons, for both women going through divorce and family law attorneys.


Women experiencing divorce The key lesson is that women must work with a financial professional early and, ideally, be involved in the family finances prior to divorce. The data is clear: women who receive financial advice and are engaged in money-related decisions fare much better in a divorce than those who are not involved. Those who can connect with an advisor early, should, as their confidence will remain resilient during the divorce process. However, for the many women who do not have an advisor, finding one after the divorce is paramount to regaining confidence. easing their likelihood of financial stability.


Women who are involved have more financial confidence going into the divorce and they recover quicker. They will also recover and rebound quicker post-divorce if they have more financial confidence going into it.”

– Amy Hale, Regional President, BMO Wealth Management


Family law attorneys

Given that lawyers are the professionals women speak with most during a divorce, it’s no surprise they end up fielding most of the financial questions from their clients. However, lawyers can best help their clients by forging relationships with financial advisors, as 97% of those with a financial advisor said their advisor has had a positive impact on their financial confidence. Consider bringing in advisors at the start of the process, both to help clients navigate the financial complexities of divorce and to increase their confidence for the long term. Understanding your clients’ needs and recognizing when to offer a more personalized “white glove” service, supported by a team of financial advisors, trust advisors and accountants, will go a long way to boosting your client’s confidence and increasing their likelihood of financial stability.

 


At BMO, we’re dedicated to helping women achieve meaningful financial progress so they can confidently embrace every opportunity. Our recent research offers powerful insights into how women manage wealth and plan for the future—underscoring that having a solid financial foundation is more critical than ever, especially during times of uncertainty.

     

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