Managing your money after losing your partner

It’s common for household income to change, and commonly drop, after the death of a partner. Alongside the emotional impact, this can bring extra pressure at a time when you have the least energy to deal with it.

The good news is that there are clear steps you can take to get on top of your bills and adjust to your new budget, without needing to do it all in one go. 

If your partner usually managed the household bills, it’s worth taking this over as soon as you feel able to, so you can avoid late payment fees or debt collection for missed payments.

To get started:

1. Gather all your bills and note down when each one is due and how much needs to be paid.

2. Check your bank account or accounts to see whether you have enough to cover these costs. 

What happens to each bill depends on how it was paid before:

• Bills paid by Direct Debit from a joint account will continue as normal, if you choose to keep the joint account.

• Bills paid from your partner’s individual account may stop, since the account is likely to be frozen once the bank is told about their death. You’ll need to contact each company to update the payment details, so they come from your account instead.

You’ll also need to update any bills that were solely in your partner’s name into your own name. You may also want to update joint bills into your name only, though there’s no need to rush this. 

If you’re worried about keeping up with payments, support is available. Find out more in our guides:

• What happens to debts when someone dies and how to pay them

• Guide to digital banking.

If you had a joint bank account with your partner, you can carry on using it as normal. You’ll just need to let your bank or building society know that your partner has died, so they can update the account details.

The bank may automatically remove your partner from the account so that it transferers into your sole name. If they do not, at some point, you might want to consider moving to an individual account in your name. This can make it easier to manage your money and check whether you have enough each month to cover your bills, though this is entirely your decision and there’s no set timeframe for making it.

Find out more in our guide How to open, switch or close a bank account.

You can notify most major banks and building societies in one go, even accounts you didn’t know about, using the free online Death Notification ServiceOpens in a new window

If you have a joint bank or building society account with someone in Scotland, the money in that account doesn’t automatically become yours if they die.

Instead, you’ll need to work out who actually paid money into the account, and who’s entitled to it under their will, or under Scotland’s intestacy rules if they didn’t leave a will. 

Once you’ve taken over the household bills, it’s worth working out a budget that reflects your new financial situation. This can also help you decide what’s realistic when it comes to any debts or a mortgage, which we cover in the next step. 

Try our free Budget planner to help you manage your money.

Start by listing your outgoings, then add up your regular income, which might come from benefits, a pension, wages or savings.

If you find you have money left over after covering your bills, you might want to think about building an emergency fund for extra peace of mind. 

Find out more in our guides:

• Emergency savings – how much is enough?

• How to save money on household bills.

If your outgoings are higher than your income, there are ways to ease the pressure.

• If you now live alone, you may be able to apply for a Council Tax ReductionOpens in a new window (or Rates in Northern Ireland) on GOV.UK.

• Our guide How to save money on your household bills could help you save hundreds of pounds.

• Unlike household bills, you can't switch water providers, but you can still cut your bills. Find out more in our guide How to reduce your water bill. 

• Switching to a cheaper energy tariff or provider could help reduce your bills. See our guide How to reduce your energy bills.

If your partner had credit or store cards, a personal loan, a hire purchase agreement or a mortgage in their name, there may still be a balance owing. It’s worth addressing these as soon as you feel ready, to avoid the debt building up.

A helpful first step is to list every debt and how much is still owed, so you can decide what to prioritise.

Find out more in our guide What happens to debts when someone dies and how to pay them.

If your partner had a mortgage in their name, it’s important to deal with this alongside any other debts.

Start by letting your mortgage lender know that your partner has died. They’ll be able to talk you through your options.

In many cases, the mortgage is one of the first debts settled from the estate, or it may be covered by life insurance or mortgage payment protection insurance your partner took out when the mortgage began.

If there isn’t enough to cover the mortgage this way, you have some choices. One option is to take out a mortgage in your own name, if you feel you can manage the repayments alone, based on the budget you worked out earlier. 

It’s important to know that you cannot simply transfer an existing mortgage into your name, even if it was originally a joint mortgage. Generally, you’ll need to apply as though it’s a new mortgage, providing evidence of your current finances so the lender can assess your ability to keep up with repayments. In Scotland, the position may be different and Scottish legal advice should be obtained.  

Find out more in our guide How to apply for a mortgage.

If you’re not approved for a new mortgage and can’t repay the balance in full, you may need to consider selling your home to clear the debt. This can feel like a daunting prospect on top of everything else, so take time to explore your options. 

Find out more in our guide Selling a house or flat in England, Wales and Northern Ireland. Property sales operate differently in Scotland, and different taxes also apply on the purchase of properties in Scotland - get legal advice beforehand. 

If you’re struggling with mortgage repayments, there is government support available. 

Find out more in our guide Help with mortgage payments.

If your income has dropped since your partner died and you are below State Pension age, you may be entitled to Universal Credit, which can top up your income and help with costs like housing or raising children.

Use our Benefits calculator to find out quickly what support you could be entitled to.

If you live in Northern Ireland, you can find out more about the benefits and financial support available to youOpens in a new window on nidirect.

Depending on your relationship with your partner, you may also be eligible for bereavement benefits and other financial support. 

Find out more in our guide Bereavement Support Payment: eligibility, how to claim and how much you’ll get.

If any household insurance policies were in your partner’s name, it’s worth checking these as soon as you can, particularly:

• car insurance

• home insurance

• life and protection insurance. 

Many policies end automatically when the main policyholder dies, which could leave you without cover without realising it.

If you jointly own the house or car, or if you’ll inherit them under your partner’s will or through intestacy, you’ll need to make sure suitable insurance is taken out in your name. If the property or car is in your partner’s sole name and you won’t inherit it, the executors of your partner’s estate will need to arrange the insurance instead. It's worth discussing this with them.

If you’re not sure how an asset is owned, consider getting legal advice before making decisions about it.  

If you were a named driver on your partner’s car insurance policy, check with the insurer whether you're still covered. 

Since most policies end when the main policyholder dies, you may need to arrange a new policy, and you’re free to shop around rather than staying with the same provider.

Driving without insurance carries serious risks, including a large fine, so it’s important to sort this out promptly.

Find out what to look out for when shopping for car insurance in our guide Car insurance – what does a good policy look like?

Let your home insurance provider know that your circumstances have changed.

Depending on how your partner’s estate was distributed, you may have inherited more or less than before, which can affect how much cover you need and what you pay.

This could also be a good moment to shop around for a home insurance deal that better suits your situation now.

Find out more in our guide Help buying home insurance. 

If you have joint life insurance, or a policy of your own, contact the provider to update the details. You may need to change the beneficiaries or adjust your level of cover.

If you don’t currently have life insurance, this might be worth considering, particularly if anyone depends on you financially. 

You may also want to look into additional protection, such as income protection or illness cover.

 Find out more in our guide What is life insurance?  

If you’re not married to your partner, you won’t automatically inherit anything from them if they die. In some situations, you may be able to apply to the courts to get financial support from their estate.

There are strict time limits for doing this, so it’s important to get legal advice as soon as you can.

For more detailed support on what to do after a death, see our Death and bereavement guides.