The Surviving Spouse’s To-Do List, Part 5: Evaluate Your Finances

If you’ve recently lost a spouse, you likely have a million things on your mind. You’re being pulled in all different directions, with seemingly everyone needing something from you. And, although there are probably a number of people around and near you during this time, the grief process is really a lonely and scary time.

Today, we are sharing with you Part 5 of our 6-part series: The Surviving Spouse’s To-Do List. Since each individual’s situation is unique, we urge you to review and use this, as a guideline. Seek out at least one trusted confidante, who can help you make decisions. And, more than anything, give yourself the time to grieve.

Evaluate Sources of Income

Recent widows/widowers are urged to postpone making any significant financial decisions until they have had a moment to grieve. Unfortunately, most businesses expect their customers to regularly pay what is owed to them, regardless of what you are going through personally. To carry you through, until your grief feels a little less stifling, conduct a quick assessment of your income and expenses. First, make a list of your current sources of income, as well as any money that might be owed to you in the near future. This should include: current employment earnings, Social Security, dividends, interest, pension payments, and IRA distributions.

Your list could potentially include some income sources that will diminish or disappear in the coming months. For example, if you were receiving a spousal benefit from Social Security, you will no longer receive this. You may, however, be eligible for the survivor’s benefit in its place. As you review your income sources, keep in mind that some expenses will be reduced, as well. Often, the two reductions will balance each other out.

Evaluate Current Expenses

Now it’s time to start a list of your current expenses. If your spouse handled all the bill payments, take a look at your checkbook register or credit card statements. This should give you a good idea as to what bills were regularly paid and when. Separate your expenses into two categories: fixed and discretionary. Your fixed expenses should include items like: mortgage payment, car payment, utilities, auto and homeowners insurance, and groceries. Your discretionary costs will be items like travel expenses, gifts, and donations.

Once you have a list of your current expenses, you can develop a system that works best for you. Pay bills the moment they arrive, or write their due dates on the envelope, arranging them in the order they are due. Everyone has their own organizational system; find what works for you and stick with it.

Are There Any Outstanding Debts?

Time for another list – outstanding debts. You’ll want to place these in three separate categories: joint loans, individual loans in your name, and individual loans in your spouses name. This will make it easier when determining who must be contacted, regarding your spouse’s passing.

For any debts owed exclusively by your spouse, notify the lender immediately. Forward this information on to the executor of the estate or your attorney. You may not be legally responsible for paying off some of these loans. Anything that is owed should be paid for out of the estate. If you are a co-signer on the loan, notify the lender of your spouse’s passing and continue to pay the loans. If you have any questions, consult with your attorney. The last thing you want is for the lender to repossess something, simply because you didn’t understand contractual language.

Once you have a handle on your finances, you’ll be better able to assess what you have, what you need, and what you could do without. Again, don’t make any significant financial decisions right away. Consider your options and where you see yourself in the short and long-term future. The Vista family is here to answer any questions you might have and would be happy to help find someone to assist you with something we cannot. You do not have to be alone on this journey.