Taking stock after the death of a partner

Over the years I’ve met with people who’ve handed the reins of financial control to a spouse or partner.  It may seem to make life easier. But it  could see you struggle if you find yourself suddenly single through bereavement.

The reality is that women tend to live longer than men. Many will find themselves managing their own finances at some point, even if it is years off in the future when their spouse has passed away.

So, even if you are happy for your other half to manage the money, be sure to stay in touch with household money matters such as the debts or investments you have – and whose name they are held in.

Most couples own their home as joint tenants, and if a co-owner dies, the surviving spouse automatically becomes the sole owner.

When savings are held in a joint account, there’s no major change for the surviving spouse. But if the money is held in the deceased spouse’s name only, the cash will form part of their estate and be distributed accordingly.

The same can apply to investments. Where investments aren’t held in joint names, it can take time for things like a death certificate to be issued. Even where a person has a valid Will, it can take weeks for probate to be granted (essentially where a will is validated) so that the estate can be distributed.

This highlights the value of thinking about how your investments will be held as a couple. It’s not just relevant to older people. None of us know what lies around the corner.

For anyone experiencing personal loss, it’s understandable to feel overwhelmed at the extraordinary turn your life has taken.  But when it comes to our finances, we all have the ability to regroup, recover and rebuild. It can help to focus on one step at a time.

1 Stop, review, take a breather

Draw up a household balance sheet that lists your assets (items of value you own) and liabilities (debts). This provides a broad picture of where you stand financially. 

2 Give yourself a ‘cooling off’ period

Allow time before making major financial decisions. This is especially the case if you receive a sizeable lump sum through, say, a life insurance payout.

3 Re-set, rebuild

It is normal to grieve for the loss of a partner. It’s important to acknowledge your feelings and give yourself time to adjust, though at some stage you need to plan to move on.

Taking stock after the loss of a spouse or partner is an area where professional advice can be valuable. It can help you discover what you can realistically achieve with the resources you have to lead a comfortable lifestyle.

Paul Clitheroe is Chairman of InvestSMART, Chair of the Ecstra Foundation and chief commentator for Money Magazine.