Suddenly Single? Grow in Financial Confidence
Posted on January 21, 2025
It can happen in a moment or over a period of time, but due to factors such as death, divorce, or significant illness, both women and men will likely experience a period of being single.
• There are more than 3x more widowed women than men in the US.
• Divorce for men and women over age 50 accounts for 36% of divorces in the US.
• 10% of women may find themselves ‘alone while partnered’ due to incapacity – for example, a woman may be married, but technically on her own, because her husband or partner is mentally or physically incapacitated.
Personal financial stability is at the top of the list of concerns when someone finds themselves in this position. This is especially true for those with significant assets, inheritances, complicated estates, and dependents who rely on you.
The first step is to rally your team! Meet with your financial advisors, estate attorney, CPA and insurance agent, so they can help identify your priorities and manage goals.
Whether widowed or divorced, it is vital to know what you have in the way of financial accounts, how they are titled, and where they are located. Make a list that includes banking, investment and retirement accounts as well as any loans. Are there accounts that you don’t own, but you may be a beneficiary?
Everyone feels better once they understand their financial situation, such as annual income versus expenses and can ensure that income is secure, and bills can be paid.
Have your expenses changed? What debt to you carry? What income did you rely on from your partner, whether earned, from Social Security, or a pension? What do you earn on your own after taxes, including investment income?
Be sure to obtain a copy of your most recent credit report and rely on your financial advisor for support throughout this process.
Take time to understand your insurance coverage and identify any gaps, which includes life, long-term care, health, and property policies. If your spouse passed and had life insurance, notify the insurance company as soon as possible. Be sure to consult your financial advisor about the proceeds and how they can best be applied to your situation, whether that means paying off debt, increasing your emergency funds, adding to investment accounts or planning for a goal.
Now that you’ve conquered the finance and insurance categories, it is time to work with your estate planning attorney on changes to your marital status and update your critical documents, such as the will and trust.
As you update documents and accounts, be sure to review those very important beneficiary designations. Consider if your Power of Attorney, executor, and healthcare surrogate remain the same. Assigning the role of personal representative (executor) to a friend or family member can be complex and a stressful responsibility for them. A trust company can help with this by serving as your corporate trustee, a co-trustee or personal representative to manage through the State and IRS tasks that come with estate settlement.
Once you have a handle on your more urgent matters, take time to consider if your life goals have changed, such as downsizing, relocating, joining a country club, or traveling more. It is our mission to help clients develop a wealth management plan that supports their lifestyle and builds confidence for their future. We invite you to contact us to discover how we can do the same for you.
Jodi Schwartzel | Portfolio Management
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel. Not FDIC Insured | No Guarantee | May Lose Value
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