What Happens to Your Finances in the First Year After Losing a Spouse?
Presented by Darren Devine, CFP®, CLU®, Financial Planner, Sun Life and President of Devine and Associates Financial Services Inc.
Losing a spouse is one of the hardest things a person can go through.
And in the middle of grief, many people are suddenly left trying to make sense of financial decisions they never expected to face alone.
Hello, and welcome to Money Monday, where we help simplify your financial journey. I'm Darren Devine, Financial Planner with Sun Life and President of Devine & Associates. For over 20 years, I’ve been helping families across Ontario plan with confidence, protect what matters most, and stay grounded through life’s financial ups and downs.
The first thing I want to say is this:
If you’ve lost a spouse, or you love someone who has, the first year is not just emotional.
It can also be financially disorienting.
Even when there has been planning in place, there is often a lot of moving parts.
Income may change. Bills may feel different. Paperwork can pile up. And decisions that seem simple on paper can feel overwhelming in real life.
That’s why this conversation matters.
In the first year after losing a spouse, one of the biggest financial changes is often income.
If both spouses were receiving income, whether from employment, pensions, CPP, OAS, or investment withdrawals, that household income may now look very different.
- Some income sources may stop.
- Some may reduce.
- Some may continue in a different form.
And while household income often drops, many of the household expenses do not.
The mortgage or rent may still be there.
Property taxes, utilities, insurance, groceries, home maintenance, and vehicle costs may not change nearly as much as people expect.
That creates a new financial reality that needs to be reviewed carefully.
The second big area is accounts, benefits, and paperwork.
There may be bank accounts to update, registered accounts to review, beneficiary paperwork, pensions to notify, insurance claims to process, and government benefits to understand.
And when someone is grieving, even making one phone call can feel like a lot.
That’s why one of the most important things in this stage is not trying to do everything at once.
In many cases, the first year is about focusing on the most urgent priorities first:
- understanding what income is continuing
- identifying what has stopped or changed
- making sure bills are being covered
- and getting support with the paperwork that needs attention
Another important piece is decision-making.
After a loss, people are often pressured—sometimes by circumstance, sometimes by emotion—to make major financial decisions quickly.
Should I sell the house?
Should I move?
Should I change my investments?
Should I help my children financially?
Should I make a big lifestyle change right away?
In some cases, action is needed.
But in many cases, it helps to slow down and separate what is urgent from what is just emotional.
Because grief can make everything feel immediate.
And this is where having trusted support matters so much.
The first year after losing a spouse is usually not the time for rushed, reactive decisions.
It is a time for clarity, care, and making sure the surviving spouse understands what they have, what they need, and what their options are.
There is also a confidence piece to this.
In many couples, one person may have handled more of the finances.
So when that person is gone, the surviving spouse may feel not only grief, but fear.
Fear of making a mistake.
Fear of missing something important.
Fear of not knowing enough.
That is more common than people realize.
And it is exactly why financial planning should never just be about numbers.
It should also be about guidance, communication, and helping people feel supported through life’s hardest transitions.
So if you or someone you care about is in that first year after a loss, here’s the most important message:
You do not have to figure everything out all at once.
And you do not have to figure it out alone.
The goal in that first year is not perfection.
It is stability.
Understanding the income.
Reviewing the plan.
Protecting what matters.
And giving yourself the space to move forward one step at a time.
Because in moments like this, calm guidance can make all the difference.
Thanks for tuning into Money Monday. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!
Talk to us today