Adjusting to a new life after the death of your spouse or partner can be a difficult journey.
Beyond the emotional pain of grief, you may also find yourself facing responsibilities and decisions that once were shared or that your partner had always managed.
One potentially challenging aspect of this transition is sorting out your finances. Whether managing everyday bills, contacting banks and insurance providers, or understanding pensions, the practical demands can feel unending.
While anyone can face financial challenges after the death of a spouse, women are statistically more likely to be affected. There are two key reasons for this.
Firstly, women tend to live longer than men, which means they are more likely to outlive their partners and take on financial responsibilities alone. Secondly, research reported by International Adviser reveals that married men over 50 are the most likely group to seek financial advice. In contrast, women – whether married or not – are significantly less likely to do so, leading to a gender gap in financial preparedness and confidence.
Whatever your situation, adjusting your financial plan to fit your new circumstances can be challenging. So, read on to discover six steps to help you take control of your finances after the death of a spouse.
1. Create a new budget based on your income and bills
If your partner has died, your household income and expenses are likely to shift.
Depending on the inheritance or pension they left behind, you may find yourself with a higher income than before. At the same time, some living costs may decrease as you’re now supporting just one person instead of two.
However, it’s equally possible that you may have less income without your partner’s earnings, and certain fixed costs may not be reduced by much.
Either way, it’s important to understand your new financial position and create a new budget accordingly.
Start by assessing your total income, which includes your own as well as any your partner may have left behind, such as a pension, savings interest, investments, or bond payouts.
Next, calculate your regular expenses. Begin with fixed costs; these are payments that tend to stay the same each month, such as your mortgage or rent. Then, take a look at your variable expenses; these are payments that can fluctuate, such as groceries or transport.
Once you have a clear picture of your income and spending, you can create a realistic budget that helps you stay on top of your bills while setting aside money for savings, emergencies, and future goals.
As part of this process, you may need to update or transfer any financial accounts or household bills that were in your partner’s name or held jointly. Contact providers to update the account details to your name and inform your bank or building society so that they can close individual accounts or update joint ones.
2. Apply for a new mortgage
If you shared a mortgage with your partner, one of the first steps you’ll need to take is to inform the mortgage lender of their death.
In many cases, the mortgage is among the first debts to be settled from your partner’s estate. However, if there aren’t sufficient funds to clear the mortgage, you may be required to take on the debt yourself.
Unfortunately, you can’t simply transfer a joint mortgage into your name, even if you were already listed on it. Instead, you’ll need to apply for the mortgage in your own right and go through a full affordability assessment.
If the lender is unable to approve you, and there are no other means of repaying the remaining debt, you may need to settle the outstanding balance by selling the property.
3. Deal with any outstanding debts and taxes
After your spouse passes away, certain assets may still be subject to tax during the estate’s administration period. For example, if the estate earns income – such as interest from savings accounts or rent – this may be liable for Income Tax until the estate is fully settled.
Additionally, if your partner had outstanding debts, it’s a good idea to deal with them as soon as possible to prevent further interest or penalties from building up. These debts might include credit cards, personal loans, overdrafts, or hire purchase agreements held in their name.
Once you have a clear overview of any outstanding payments, identify which can be paid off immediately and which may need to be managed over time.
With this information, you can update your budget to reflect any ongoing repayments and ensure that your finances remain manageable during this transitional period.
4. Change your insurance policies
If any of your insurance policies were in your partner’s name or held jointly, it’s important to review and update them to make sure you’re still properly covered.
In many cases, policies automatically end when the main policyholder dies, which means you could be left without valid cover, sometimes without realising it.
You’ll need to contact each provider directly to clarify the status of any existing policies and arrange for new cover where necessary. This ensures that you’re financially protected and that there are no gaps.
5. Plan for the future
Once you’ve settled into a routine of managing your current finances, it’s important to start thinking about long-term financial planning to secure your future. For example, if you receive a substantial inheritance, you may have the opportunity to retire earlier than planned or make investments to ensure your income will be sufficient when you retire.
When making plans for the future, it’s also important to revisit your will. Updating it ensures your beneficiaries are best supported and your wishes are accurately reflected.
6. Don’t be afraid to ask for help
Dealing with the death of a spouse is always going to be a challenging experience, and it’s important to remember that you don’t have to go through it alone.
Friends and family may be able to support you with everyday tasks or help you navigate some of the administrative responsibilities.
When it comes to managing your finances, a financial planner can help you understand your new position, guide you through any significant financial decisions, and work with you to create a plan for the future.
With the right guidance and a solid plan in place, you can move forward with greater peace of mind and security.
To speak to a financial planner, get in touch.
Email hello@solusfinancial.co.uk or call us on 01245 984546.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Approved by Best Practice IFA Group 09/04/2025