PURSUIT MAGAZINE

Saving Grace

At a time of deepening economic turmoil and mass layoffs, career women are being advised to learn about ways to save for a rainy day

Money and marriage

The number of couples seeking divorce or separation in Hong Kong has risen 10 per cent since the financial crisis hit, says the Hong Kong Family Welfare Society. The rapid erosion of asset values is another concern. Divorce coach Lior Sade says: “Wealthy spouses — mostly men — are eager to come to agreement regarding asset valuation and maintenance while asset values are low.’’ However, the same concerns can actually hold a marriage together — at least temporarily.

“Another couple I know, who were already in the process of divorce with aproperty settlement already agreed, decided to freeze the divorce proceedings due to the uncertainty in their life following the financial crisis and the fear that one of them will lose the job, and the risk this might pose to their ability to support their children in two homes from a purely financial perspective.”

The cost of the divorce itself can also be a deterrent, with costs rising to the millions of dollars, adds Sade, who experienced it herself. So what would a woman do?

Sade says not all women are financially uneducated. Those who are financially independent are more confident about their financial future as singletons, even to the point of initiating divorce if they think they can do better than their husband. “Career women and former career women with executive positions in banks, IT and legal are, in my experience, taking action especially when they are concerned that a spouse poses a significant risk of poor investment decisions for the couple’s childrens’ future support, education and inheritance,” Sade says.

The key word there is career — if you have one, you are likely to be far better off, says Bruno Lee, head of wealth management for Hong Kong at HSBC. “Marriage is, of course, supposed to be long term, life-long [but the] assumption that someone will take care of you for life could be kind of risky.’’

Times have changed. While women in previous generations may have been able to rely on their children for financial security in their old age, that is rarely true any more. The children are now living in a more competitive environment, he says. Single women need to ensure they have sufficient savings and a buffer to ensure they can continue their lifestyle