Women and the future: Redefining legacy in the evolution of Family Offices
The role of women in family offices has been the focus of much discussion recently – and the Globe Law and Business Special Report, The Rising Role of Women in Family Offices and Family Businesses, explored the growing role of women in leadership positions within family offices and family-owned businesses. Miranda Fisher, partner in the Charles Russell Speechlys family team, wrote the chapter Women, wealth and divorce – pioneering female litigants in family law.
Current trends impacting this evolution include the globalisation of families and the increase in the number and establishment of family offices, coupled with women taking more leadership positions and shaping family offices either through advisory capacities or direct management. On top of this, more women are generating or coming into their own wealth - through family wealth, successful business enterprises or, from a family law perspective, following awards made on divorce. This has led to an impact on the variety of structures for managing family wealth and the management of family offices in general.
Background
Deloitte Private’s ‘Defining the Family Office Landscape, 2024: Executive Summary’1 set out that ‘the face of wealth is being defined by new money’ and also, importantly, that ‘women are reaching the top’: “Women now serve as the principals of 15% of family offices worldwide, reflecting a drive to create their own wealth and to take on leadership roles within the family enterprise. In North America, women are the principals of 12% of family offices, in Europe 20%, Asia Pacific 18%, the Middle East 10%, South America 17%, and Africa 21%.”
Additionally, it is reported that, in the UK, 37% of family office CEOs are women and that number is expected to rise.
Over the last few decades, due to significant developments in English family law, there has been an increase in female multi-millionaires generated by divorce settlements. The way that women are also investing their money and therefore the strategic direction of certain family offices is interesting. One example of this is Jamie Cooper, who upon her divorce from hedge funder, Sir Christopher Hohn, received £337 million as her divorce settlement. Crucially, philanthropy and ethical investing was an important factor as this included a payment of £282 million to her Big Win Philanthropy Foundation.
Future outlook
As the statistics above show, women are becoming more involved in the management and direction of family wealth, challenging more traditional patriarchal structures. Divorce proceedings can significantly affect family office assets and governance and so women, as both potential beneficiaries and significant decision-makers, are influencing how family offices prepare for and respond to marital breakdowns, including the use of pre and post nuptial agreements.
Looking ahead, as the next generation comes to the fore, more women are assuming leadership positions within family offices, bringing strategic direction in line with modern values and legal standards. Women in family offices are also often leading philanthropic initiatives, leveraging their influence to drive social change through charitable giving and impact investing.
The family law impact
Family offices typically manage complex, intergenerational assets, including businesses, real estate and long term investments. Divorce proceedings require full disclosure of and a detailed valuation, of all relevant assets.
The impact is not just in respect of disclosure as it may be that a financial settlement/order leads to forced sales, restructuring, or the need to liquidate certain assets, potentially altering the family office’s investment strategy and long-term objectives.
Strategic legal advice will need to be sought particularly as the obligation to disclose may affect the desire to protect the family’s privacy and business interests. In some cases, this may mean family offices adopt more robust confidentiality procedures or, in a more extreme example, restructure ownership to limit risk.
Prenuptial and postnuptial agreements can offer a form of protection for family offices managing intergenerational family wealth – seeking to protect or safeguard assets in a future family divorce. These agreements can clarify how certain family-owned assets should be treated, helping to preserve the integrity of the family office and reduce the risk of lengthy and costly litigation.
The reported statistics paint a very clear picture about the future of women’s involvement in family offices. Family wealth is projected to increase by ‘189 percent between 2019 and 2030 from US$3.3 trillion to US$9.5 trillion by 2030’2, meaning we will undoubtedly see an increase in family offices featuring in family law cases– women representing as leaders of offices as well as and more wealthy women as parties.
1 Defining the Family Office Landscape, 2024 (deloitte.com)
2 EPrivateClient - Family offices expect increased wealth creation and more influence in investment community (paminsight.com)
