Magdeleen Cornelissen | Financial resilience through life changes

I am a romantic at heart. I can predict the script within the first five minutes of any romance. Somewhere in the middle of the storyline you can expect the main characters to stare soulfully and expectantly into each other's eyes. Fast forward to the end, you will hear the words "I do". The realities of life and especially finances, are less predictable. Financial advisers are constantly faced with life's reality checks, as we are often confronted with the less glamorous parts of the fairytale, namely the heartbreak of relationships coming to an end.

The 2022 StatsSA report on divorces in South Africa, published in March 2024, shares data behind the increasing number of marriages ending in divorce. It is interesting to note that more women than men initiate divorce proceedings and that the peak age group at divorce for woman was 35 to 39 years.

Although society has improved in empowering women, it is still evident that women are often emerging in an economically less favourable position following a divorce. Quite often the first time that many of these women meet with a financial adviser is in the process of their divorce. At this point, they are faced with the stark reality that their financial position is less than ideal and that the likelihood of them reaching their retirement goals are slim. It does not however have to be the end of your financial journey. J.K. Rowling famously said, "Rock bottom became the solid foundation on which I rebuilt my life".

Women need to empower themselves to ensure that, regardless of the circumstances, they will be able to go through the process of divorce with the certainty of financial well-being.

The foundation of our financial education begins at home. Children, especially girls should be educated about the power of financial independence from a young age. Not only will that provide them with the ability to play a leading role in their financial journey, but it will also entice them to think critically about the steps they take to create their own wealth.

Women must have access to a financial adviser. Men and women do not necessarily have the same needs and objectives when it comes to managing their finances. Women often take leading roles in managing other household affairs at the expense of their own financial position. Lack of financial knowledge and control of financial affairs can be a major obstacle for women who find themselves trapped in a hopeless marriage. 

Women should actively engage in their household finances, even if they feel that it is not their "speciality". The ability to share your dreams and concerns with your financial adviser, without the fear of being judged, is imperative. Realising that discussions about the most appropriate marital regime is just as important as choosing the perfect wedding dress and can lead to a better outcome in the event of divorce. These are discussion points that can change the course of a woman's financial outcome.

Prioritising your financial well-being can be the cornerstone of your financial wellness. Be realistic about your savings goals but remember that every cent can make a difference when saving for retirement. A financial adviser is there to support you. Also, ask those uncomfortable questions about your or your partner's financial position, especially while you can still change the outcome of your joint financial position.

No one gets married with the idea of getting divorced but unfortunately, marriages can end abruptly. As a romantic at heart, I believe that women can indeed leap into the next chapter of their lives, without the shadow of financial troubles following them wherever they go.

 *Magdeleen Cornelissen, Wealth Manager, PSG Wealth.