No one gets married expecting to eventually file for divorce.
But when a relationship ends, many women find themselves navigating a new – and often challenging – financial reality.
Divorce can be costly. But the financial implications go beyond legal fees and asset division.
For many women, the harder part is realizing they’re out of the loop on the family’s finances. And that can affect not only their sense of financial security, but also their ability to protect themselves going forward.
Understanding the financial visibility gap
It’s not uncommon for women to realize they’ve lost sight of the family finances after a major life event.
In many households, responsibilities naturally evolve over time. One partner may take on more responsibility for running the household and caring for family members, while the other manages more of the day-to-day financial decisions.
The risk is that one partner can gradually become disconnected from the family’s financial picture. “In my experience, it’s often women who find themselves in that position,” says Sue-May Talbot, Portfolio Manager at Genus Capital Management.
This is more common than most people realize. A 2024 study published in The Review of Financial Studies found a significant gender gap in household financial decision-making – and that traditional gender norms remain one of the biggest factors driving it.
It’s a gap that might not mean much when things are going well. But it matters greatly when a marriage ends.
What can help? “Having the knowledge and confidence to participate in decisions that affect your future,” Talbot says.
So what does this actually look like in practice?
What every woman should know about their financial picture
“Financial independence begins with knowledge and grows through participation,” says Talbot. That might mean maintaining a savings or investment account in your own name, asking questions during financial planning meetings or simply making a habit of staying informed about your household’s overall picture.
“Financial preparedness also involves ensuring important documents are current and accessible,” Talbot adds. “It means being prepared if life takes an unexpected turn.”
Even if one partner typically takes the lead on investments, both should attend meetings with financial, legal and tax advisors whenever possible. Being part of those conversations helps ensure everyone understands the family’s financial picture and knows where to turn when important decisions need to be made.
Ideally, both partners should have a clear understanding of where things stand. That means knowing:
- What the household owns and owes
- What accounts exist – and how to access them
- What insurance coverage is in place (life, health, disability, property)
- How investments are structured and who manages them
- The basics of your estate plan
It also means knowing where to find the paperwork: wills, powers of attorney, insurance policies and account statements. These aren’t documents you want to be hunting for in a moment of crisis.
Regular financial conversations – even informal ones – can help both partners stay aligned and informed over time. And these don’t just apply to partners.
As more family wealth moves between generations, parents and extended family members are playing an increasingly active role in how wealth gets distributed and protected – even before a marriage begins.
Prenups and generational wealth planning: The new reality of protecting family finances
Thanks to the massive intergenerational wealth transfer currently underway, there’s been a shift in how families think about – and distribute – money.
For many younger millennials, that shift is showing up in the form of parental support for home purchases, contributions to First Home Savings Accounts and other direct financial gifts earlier in life.
“More parents are choosing to help their children now rather than waiting until they’ve passed away,” says Talbot. “Whether it’s helping with a home purchase or providing other financial support, these gifts can make a meaningful difference when it’s needed most.”
But that shift is also changing the nature of financial conversations families have around major life transitions. “We’re seeing these conversations happen more often, especially when there is an inheritance or significant family wealth involved,” Talbot says.
And often they’re formalized into documents such as prenuptial and cohabitation agreements as a way to set expectations, protect family assets and reduce ambiguity for everyone involved. “While prenups and cohabitation agreements were once considered taboo, many families now view them as a practical planning tool – not an expectation that a relationship will fail,” Talbot says.
For women, they can help to provide some clarity around how assets may be treated and what each party intends to protect in the event of a future separation.
Building financial confidence before you need it
The most important thing about financial preparedness is timing. And the best time to build it is long before anything goes wrong.
For women who feel intimidated by finances, Talbot’s advice is direct: start small and start now. “Confidence comes from taking small steps and building knowledge over time – whether it’s contributing to a savings account, asking questions, working with trusted professionals or taking a course.”
Her biggest recommendation? Pay yourself first.
“Women often spend so much time taking care of their families and putting everyone else’s needs ahead of their own that they forget to invest in themselves,” she says. “The good news is that you don’t need a lot of money to get started. Even setting aside a small amount each month can make a difference. What matters most is getting started. Financial empowerment starts with becoming engaged and realizing that you are capable of managing your financial future.”
Over time, consistent saving and investing can help build greater financial resilience and provide more flexibility when making important life decisions.
Financial independence doesn’t mean managing everything yourself. It means understanding your family’s financial picture well enough to ask questions, make informed decisions and move forward with confidence – whatever life brings.
Interested in learning more about protecting your financial future? Speak with a Genus advisor today.
This document is provided for general information purposes only and is not a substitute for professional advice. It does not constitute investment, legal, accounting, tax, or other advice or recommendations, nor should it be relied upon as the basis for any decision. Readers should seek specific professional guidance before making financial or investment decisions. Certain information herein is based on third-party sources believed to be reliable, but its accuracy and completeness are not guaranteed. Past performance is not a guarantee of future results.
