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At Solus Financial, we specialise in supporting people dealing with complex financial and emotional circumstances, such as bereavement or divorce.
In our experience, there is one question that widows and divorcees ask more than any other: “Am I going to be okay?”
This is an understandable concern. When you’re going through a divorce or adjusting to life after losing your spouse or civil partner, it’s easy to feel overwhelmed.
While financial planning might not be able to alleviate your concerns entirely, it can give you some much-needed clarity and control over your wealth. This can make it far easier to face the next stage of your life with confidence.
Continue reading to discover the steps you can take to ensure “you’re going to be okay” after a divorce or bereavement.
1. Don’t overlook pensions
For many people, their pension is one of their largest assets. However, during a divorce, it’s often overlooked.
Overlooking pensions can create significant imbalances between partners once a settlement is complete, and women are more likely to lose out than men.
Research by Legal & General reveals that the average man over 50 has a pension worth £84,205, compared to just £39,654 for women.
This disparity is partly due to career breaks to raise children, which can mean women contribute less to their pensions over time.
If you are divorcing, it’s vital to consider whether your pensions should be divided fairly through a sharing order or offset against other assets, like the family home.
Each option has its own benefits and downsides, so it’s important to weigh them carefully.
Read more: Why it’s so important to include pensions in your divorce settlement
Moreover, if your spouse or civil partner has passed away, you may be entitled to part or all of their retirement fund.
This could significantly affect your standard of living and even Inheritance Tax (IHT) liability.
As such, understanding what you’re entitled to can provide reassurance about your future income.
2. Make decisions about your family home
A shared or family home is likely another of your most valuable assets, and dealing with it can be especially emotional.
In a divorce, deciding what to do with property is rarely straightforward.
You may decide to sell it and divide the money, arrange for one partner to buy the other out, or maintain joint ownership.
As is the case with most decisions, each option has its own set of financial and emotional consequences.
Read more: 4 common ways to split your shared home when you divorce
If you’ve recently been widowed, you may need to decide whether you want to remain in the home or move somewhere else.
Your mortgage might make the decision more complex, especially if it’s in joint names. You may need to apply for a new mortgage in your own name or consider selling the home if the repayments are unmanageable.
3. Create a budget that reflects your new life
Life after a divorce or bereavement often brings significant changes to your financial situation. Your income may be higher or lower than it was, and your expenses will likely change too.
As such, it’s worth creating a new budget to take control and assess what you can realistically afford.
Start by calculating your income, which might include your:
- Earnings
- Spousal or child maintenance
- Pensions
- Investments.
Then, compare this to your expenses, such as your housing, utilities, and discretionary spending.
If your partner has passed away, ensure household bills and accounts are transferred or updated into your name.
A new budget can provide peace of mind that your daily expenses are covered while allowing you to work towards your long-term goals.
4. Review your protection policies
Another aspect of your financial plan that’s often overlooked after a divorce or bereavement is your protection policies.
If your partner has passed away, you will need to check whether your existing policies are still valid.
In some cases, your cover might end automatically when the main policyholder passes away, so it’s vital to arrange a new policy to ensure you remain protected.
Read more: 6 steps to help you take control of your finances after the death of a spouse
You may also need to update your protection policies after a divorce.
For instance, you might want to change the beneficiaries on your life insurance or adjust your cover to reflect your new circumstances.
Doing so helps ensure you and your loved ones maintain your standard of living should the worst happen.
5. Create a new plan that provides peace of mind
One of the best ways to answer the question “Am I going to be okay?” is to create a new financial plan that reflects your current situation.
This should ideally cover your:
- Income
- Savings
- Investments
- Pensions
- Protection policies.
You may also want to revisit your long-term goals, as they might have changed. For example, you may have new goals for your retirement or your children’s future financial stability.
Working closely with a financial planner could help you bring all of these aspects together. They can review your plan regularly during this challenging period to ensure that, as your circumstances evolve, your financial situation will too.
Rather than focusing solely on the complex financial challenges you now face, we can help ease your burden so you can look to the future with confidence.
Please email hello@solusfinancial.co.uk or call us on 01245 984546 to find out how we can help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
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 tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
The Financial Conduct Authority does not regulate estate planning or tax planning.
Approved by Best Practice IFA Group 09/10/2025.
