How Financial Advisors Can Help Guide Women During Divorce

Women now control more wealth than men, and the difference is projected to increase: Women’s personal wealth in the U.S. is expected to reach $30 trillion by 2030.¹ Women live longer than men, on average, and more women are in the workforce than ever before. Yet most women who are going through a divorce—an estimated 95%—do not seek the guidance of a financial professional.²

This dynamic not only places women at a disadvantage during a complicated time of their lives—it’s also a missed opportunity for financial professionals to begin and strengthen relationships.

Trust is the foundation of a strong relationship between financial professionals and their women clients. This foundation is crucial even for clients who are married, especially if their spouse is the primary financial decision-maker. Should the couple divorce, you will already have a relationship with your female client, putting you in the position to help her develop an appropriate financial strategy during her divorce and into the future. 

As you develop and enhance relationships with female clients, it’s important to consider your client’s decision-making role to ensure you are meeting her needs. Keep in mind that many divorcing women will be making major financial decisions for the first time in years, and some of these decisions may be very complex. Knowing your client’s decision-making role in her household is an ideal way to personalize your approach to best meet her needs.  

Decision-making roles include:

• Primary Decision-Maker. This client is independent and informed; she makes all financial decisions for her household. You can support a Primary Decision-Maker by helping her identify and set financial goals, coaching her beyond just investing, and assessing her own risk tolerance for her household. 
• Shared Decision-Maker. This client shares responsibility equally with her spouse and wants to be involved for her own empowerment. As she moves from a Shared Decision-Maker to a Primary Decision-Maker during a divorce, collaborate with this client by explaining what’s happening in the market and how your strategy supports her. Emphasize long-term performance to put risks and short-term volatility into perspective. 
• Delegating Decision-Maker. This client has minimal involvement with major financial decisions but focuses on the day-to-day finances. If you’re working with a Delegating Decision-Maker who must now take on more financial responsibility, provide opportunities to ask questions; suggest self-service financial education through podcasts, webinars, and workshops; and offer clear feedback, updates, and next steps. You have a particularly strong opportunity to build trust with clients in this role, who have a greater need for learning and communication.

Host a monthly meetup or one-time workshop. A monthly meetup for women going through divorce can provide clients and prospects with actionable ideas and next steps. Give women a community to learn how they can protect their finances and plan for the future. Discussions can cover topics such as life insurance, child support, and child custody.

You can also invite women who are going through a divorce or whose divorce has recently been finalized to attend a Finding & Funding Your “Why” workshop. The workshop can help them focus on the future, provide a place to learn and ask questions, and continue to grow your relationship.

Share educational resources. Our Financial Checklist Guide for Women Transitioning Through Divorce is a practical tool that gives women immediate steps to take control and help protect their future. In addition, Take Financial Control of Your Life During and After a Divorce provides details about Social Security benefits after divorce, child support, retirement, and more. 

Remember, you are a trusted resource too. Coaching can be a powerful tool for women during a divorce. Major transitions such as divorce are among the best opportunities to partner with and guide your clients. 

Create women-focused communications. To cultivate relationships with women more broadly, plan times in your annual communications calendar when your targeted audience will primarily be women. For example, schedule a quarterly or biannual email or social post for women clients highlighting services, tools, and ways you can support their unique needs. Also consider creating social media posts, emails, and other communications for events such as International Women’s Month in March and breast cancer awareness in October. 

Team up with a local divorce attorney. Partnering with a trusted local divorce attorney can help build your business. Give them your card to distribute, and vice versa, along with a flyer outlining the services you provide to women going through a divorce.

Trust and communication are essential to building relationships with women investors, and this is certainly the case with clients who are going through divorce. Helping clients and prospects through a turbulent situation offers an opportunity to demonstrate your value and trustworthiness in an uncertain time. Take the time to build these important relationships today.