Nothing can be more tragic in life than losing a loved one, whether a child or a spouse. You can certainly plan for loss in your life, but if it happens to you personally, it’ll rock your world. If you do experience such a loss, money is probably the last thing on your mind. But while you’re dealing with that grief, you also have to face the reality that you’re likely to have some financial problems. This is a situation that nobody wants to find themselves in but it can and does happen and it is so hard to deal with.

Suddenly going from a two income household to a single income household will put a huge strain on your finances. If your spouse was the sole earner, you’ll be in an even harder position, same as if you have kids. While none of that seems important in the weeks and months following the loss, you will have to deal with it at some point, otherwise, you can find yourself in an incredibly difficult financial position. These are some of the most important ways to deal with finances if you are widowed.

Only Deal With Immediate Financial Issues

The period following the death of a loved one is so stressful and you aren’t going to be in a position to be making serious financial decisions. Your judgment will be clouded and you could end up making bad decisions that will damage your finances in the future. At this point, you should only deal with immediate financial issues like funeral costs and bills that need to be paid. In the future, once you have dealt with your grief, you can start making more long term decisions about your finances.

Claim Any Money That You’re Entitled To

Your household earnings are going to drop significantly so it’s important that you claim any money that you’re entitled to because it will be a big help. If your spouse was killed in an accident and it wasn’t their fault, you should consider contacting a wrongful death lawyer and see if you have a case. If you win a settlement, it could help you out so much in the future. If your spouse had a life insurance policy, you need to claim on that as well. It can take a while to go through the whole process with the insurance company so get started as soon as you feel ready. Finally, you should see if there are any government benefits that you are entitled to after being widowed.

Look Into Investments For The Future

If you get a lump sum of money from an insurance policy or a wrongful death lawsuit, it’s important that you handle it properly and don’t waste it. One of the best things to do is to invest it properly so you see regular returns on it. If you invest the money that you have wisely, you can secure your finances in the long term. However, if you just use the lump sum to cover your living costs, you’ll struggle to make ends meet once it runs out.

Dealing with the loss of a partner or spouse is so difficult and money is going to be the last thing on your mind, but it’s important that you start taking steps to secure your finances so you don’t get into a bad situation. There’s so much to think about and consider, but take things one step at a time, at your own pace!

For another real life perspective from a reader, check out “Planning for the Worst“.