In many households, there’s one person who naturally takes on the role of “money manager.” They handle the bills, keep track of investments, stay on top of retirement accounts, and generally know where everything stands. For some couples, that’s a comfortable arrangement--until it isn’t.
As financial advisors, we’ve seen how devastating it can be when the spouse who manages the finances passes away first. Not only is the surviving spouse coping with grief, but they may also be faced with the overwhelming task of trying to figure out where accounts are, how income is structured, and what decisions need to be made.
We’ve seen firsthand how difficult it can be when one spouse is left in the dark about the family’s finances. In one case, a widow discovered her husband had multiple bank accounts and investments she never knew existed, and it took months of digging through paperwork and tax returns to figure out what she actually had access to. Bills went unpaid and her stress mounted. Another woman believed she was “covered” by life insurance, only to learn after her husband’s sudden passing that the policy had lapsed years earlier, leaving her without the safety net she expected.
These stories aren’t unique—they’re far too common. The truth is, if only one spouse knows the financial plan, then there really isn’t a financial plan for the family.
5 Things Every Couple Should Share in a Financial Plan
To protect your family and provide confidence, here are five priorities to review together:
- Account Inventory
Make sure both spouses know where every account is held—checking, savings, retirement, investment, and even online payment apps. Write down account numbers and keep an updated list in a secure, but accessible, place. - Income Sources
Clarify how the household is supported: pensions, Social Security, investment income, or annuities. If one spouse passes away, how does that income change? Understanding survivor benefits is key. - Insurance Coverage
Review life, health, long-term care, and property insurance. Both spouses should know what’s in place, what it covers, and how to file a claim if needed. - Debts and Obligations
List out mortgages, loans, credit cards, and any recurring obligations. Knowing what needs to be paid, and when, avoids missed payments and credit issues. - Professional Contacts and Documents
Have a clear list of your financial advisor, attorney, accountant, and insurance agents. Store wills, trusts, powers of attorney, and healthcare directives in a place where both spouses can access them.
I recommend the book “In Case You Get Hit by a Bus: How to Organize Your Life When You're Not Around Later.” It is an excellent guide for organizing these important details. It encourages families to create a roadmap that covers not only financial matters but also practical information like online passwords and household management.
A strong financial plan isn’t just about investments or retirement; it’s about making sure your spouse is protected and prepared if something happens to you. Talking openly about finances may not be the easiest conversation, but it’s one of the most loving and responsible things you can do for your partner.
If you and your spouse haven’t had this conversation yet, now is the time. Straight Forward Financial can help facilitate the discussion, organize your plan, and give both of you peace of mind knowing that no matter what happens, you’ll be prepared.