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When a partnership ends — through death, divorce, or separation — the suddenly single often experience a financial shock. Joint assets may be divided. Their household income may be cut in half, and their living expenses may rise as they assume sole responsibility for their monthly bills.
In many cases, the net effect is a reduced standard of living, especially for women.
Following a divorce, women (who tend to carry higher cost burdens as primary caregivers) experience drops in household income of up to 50 percent, nearly double the drop experienced by men, according to a 2025 study by the University of Michigan.1
The death of a spouse can similarly disrupt household income, both for couples in their prime earning years and for seniors who may need to adjust their lifestyle when their partner’s Social Security benefit disappears.2,3,4
And all too often, the newly single aren’t prepared for their new financial reality.
“The fact is that most people don’t have a financial plan,” said Martin Battock, a financial professional with GoldBook Financial in Scottsdale, Arizona. “They don’t know how much they have coming in or how much they are saving and spending, so when they lose that second income, it can be extra challenging.”
Yet, the shift from shared expenses to self-reliance is also an opportunity to establish financial independence. This is your moment, perhaps for the first time, to manage your money in a way that is meaningful to you. All you need is a road map and a little support.
Make no big moves
From a money management standpoint, your best first move after any major life event may be to sit tight, said Samantha Vona, a financial professional with GoldBook Financial in La Jolla, California.
Don’t put a for sale sign in the yard. Don’t reallocate your investment portfolio, which may be irreversible. And don’t make drastic career changes — at least for now.
Why? A change in relationship status can cause significant stress, which may cloud judgment about money-related decisions.
Research shows that individuals who experience financial stress are more likely to exhibit a scarcity mentality, which may induce them to sell assets quickly at a loss. They are also less likely to save for new expenses effectively.5
Take the time to visualize your next steps and make thoughtful decisions about how you wish to live.
Secure your accounts
You should, however, immediately secure your bank accounts after a separation, death, or divorce,” said Thomas Smith Murray, head of wealth management for Shepherd Wealth Group in Armonk, New York.
“The first thing you should do is check your credit report to make sure that your partner did not have a bunch of loans you didn’t know about it,” he said, noting legal counsel is critical to protect against liability risk and ensure that all your assets are secure. “In the case of a divorce, you also want to be sure that your ex-spouse is not out there opening credit cards in your name.”
After a divorce, he said, you should consider:
- Closing joint accounts.
- Removing your ex-spouse as an authorized user on your credit cards.
- Canceling or moving any automated payments to a new personal account.
- Changing the passwords for accounts in your name.
By contrast, those who lose a spouse may not need to close their bank accounts as ownership of a jointly held account typically transfers automatically to the surviving account holder upon the death of the other account holder.
But it is important to check with your banking institutions and alert them of your spouse’s death. It may also be wise to re-title joint accounts in your name alone to avoid future complications. Here again, an attorney can offer essential guidance.
Assemble your team of trusted professionals
Next, build your team of professional advisors who can help you get from where you are today to where you hope to be.
“That’s the deep breath you need,” said Vona, who notes that there is far more to financial planning than maximizing your investment returns. “It’s the process of looking at all the levers you can control to determine how they impact your goals.”
For example:
- Should you stay in your home long term or only for the next few years to give yourself time to process the decision emotionally?
- If you pay for your child’s future wedding, can you still afford to retire in five years? (Related: Financial planning for single income with no kids (SINKs)
“These are the conversations that help you make informed decisions,” said Vona. “They show you the financial impact of your choices, which bring peace of mind that you really are going to be OK.”
You may also wish to consult a tax professional for guidance on how your tax liability may change as a single income tax filer.
Indeed, married couples often benefit from tax breaks that single individuals do not receive. For example, the standard deduction for married couples filing jointly is double that of single filers, as is the federal gift and estate tax exclusion limit, which can potentially result in a higher tax liability for suddenly single individuals.
Additionally, those who previously benefitted from a partner's lower income (which reduced their combined tax bracket) or medical expense deduction may find that more of their income is subject to taxation.6
Connect with a MassMutual financial professional
Update your beneficiary forms
After any major life change (birth, death, or divorce), you should also review and amend the beneficiary forms on your retirement accounts and life insurance policies. It’s not enough to update your will.
Why? Whoever is named as beneficiary to these accounts is legally entitled to that money when you die, even if it conflicts with the beneficiaries named in your will.
If you don’t want your ex-spouse to inherit your 401(k) or receive the future death benefit on your life insurance policy, and those funds are not subject to division under your divorce decree, now is the time to make that official. (Learn more: Estate planning for single adults)
Rebuild your emergency fund
Your next move is to rebuild your emergency fund, if you do not have enough savings set aside.
Conventional wisdom suggests that an emergency fund should consist of at least three to six months’ worth of living expenses, held in a liquid (immediately accessible) interest-bearing account, such as a money market or high-yield savings account.
But singles, who do not have a backup income stream in the event they should lose their job or experience a financial hardship, may need up to a year’s worth of living expenses (not income) available. If they are self-employed or have fluctuating income, they may need more than that.
An emergency fund is a core component of financial planning, providing a safety net to cover unforeseen future bills. Without it, you might be forced to incur high-interest credit card debt, borrow from your retirement account, or tap your investment portfolio during a stock market decline, which could compromise your future financial security. (Learn more: Why having an emergency fund is a top priority — and when to use it)
Budget for higher living expenses
Next, examine your expenses so you can start making decisions about whether you need to reduce your housing costs or eliminate debt.
Start by adding up your income, including any support payments you may receive. Then track your monthly bank statements and credit card bills to calculate your fixed expenses (mortgage, health care, utilities) versus variable expenses (groceries, entertainment). You may notice that your cost of living climbs considerably when you are no longer sharing expenses.
A 2026 survey by Redfin found that nearly two-thirds (64 percent) of single Americans struggled to afford their regular rent or mortgage payments, compared with 39 percent of married people.7
Consider recording your purchases daily to identify spending patterns and look for opportunities to eliminate waste.
Rememberthat a budget is not designed to limit your fun. It's a tool to help you reduce expenses on things you value less so you can redirect those dollars toward things that bring your life more meaning. (Related: What does a budget mean and why is it important to have one?
Review your retirement plan
Those headed for a solo retirement may also need to increase their savings rate or adjust their target retirement date to compensate for the loss of a partner’s income and savings.
Indeed, housing costs consume a relatively higher percentage of a single retiree’s annual income from sources such as Social Security benefits, personal savings, pensions, trusts, and annuities. Single seniors may also incur higher long-term care costs as they age during their sunset years, especially if they do not have family or friends nearby to help them age in place.
According to 2025 research, single individuals spend roughly 70 percent to 75 percent of what couples spend in retirement, meaning singles need proportionally more savings to maintain their lifestyle.8
Review your life insurance and disability income insurance coverage
Lastly, you should review your life insurance and disability income (DI) insurance policies to be sure that your loved ones are protected.
“In many cases, the need for life insurance increases when two people split up because the amount of coverage you may need to provide for your children or to help pay off your mortgage or other debt you may have that is no longer divided by two,” said Battock. “Now it all depends on you.”
Some individuals initially choose a term life insurance policy to maximize the size of their death benefit for a lower premium. Term life coverage can potentially be more affordable because it provides protection for a limited period of time. Your beneficiaries would only collect a death benefit if you die during the years that the policy is in force, assuming your premiums are up to date. (Related: Shopping for term life insurance)
By contrast, a permanent life insurance policy, such as a whole life policy, pays a guaranteed death benefit to your beneficiaries whenever you pass away, provided your premiums are paid. Such policies also accumulate cash value, which can be accessed during your lifetime to help cover expenses such as college tuition for your children or retirement income, although that could have negative financial consequences.9 (Learn more: How whole life insurance balances protection and accumulation)
In some cases, you may be able to convert a term life insurance policy to a permanent life insurance policy later on as your financial goals evolve and income allows. (Learn more: Pros and cons of converting term life to whole life)
Sole breadwinners should also consider protecting their income, which is likely their greatest asset, with disability income insurance. Why? Working adults are far more likely to experience an income interruption due to a disability at some point during their career than they are to die prematurely.
According to the Social Security Administration, roughly 1 in 4 of today’s 20-year-olds will become disabled (either temporarily or permanently) and entitled to Social Security disabled worker benefits before reaching age 67.10
If you are going through a divorce, it may be prudent to include language in the divorce agreement that requires the working spouse (or both, if both are working) to maintain life insurance and disability income insurance coverage. That helps to protect each other’s interests, with reasonable reserves maintained to pay the premium in the event of a temporary period of unemployment. (Learn more: Why divorce settlements should include disability income insurance)
Conclusion
The suddenly single are often forced to navigate a new financial future that may include higher living expenses, different tax liabilities, and a smaller retirement nest egg. But they also have the newfound freedom to spend, save, and invest as they choose.
By surrounding themselves with a team of trusted professionals, solo earners can chart a new course toward financial security starting today.
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Frequently asked questions about the financial implications of becoming suddenly single
Q: What are the first financial steps I should consider after a divorce of a spouse?
A: Your immediate priority should be to secure your financial foundation. Open a bank account in your name alone if you don't already have one and ensure that you have access to funds for daily expenses. Document all shared assets, debts, and accounts. Change passwords on financial accounts and alert your bank if you're concerned about unauthorized access. If your income has changed, apply for any benefits you may qualify for immediately.
Q: Should I keep the house or sell it when I become single?
A: This decision hinges on affordability and emotional readiness, not sentiment alone. Calculate the true cost of homeownership: mortgage, taxes, insurance, maintenance, and utilities. If these exceed 35 percent of your income, you may feel house-poor and be unable to save for other goals.
Q: Do I need to update my estate planning documents after a death or divorce?
A: Absolutely — and immediately. Update your will, beneficiary designations on retirement accounts and life insurance, power of attorney, and healthcare proxy . These documents don't automatically change when your relationship status does. If your ex-spouse is listed anywhere, they may still legally inherit or make decisions for you unless you update the paperwork. Review and revise these documents every few years or after major life changes.
Discover more from MassMutual…
Social Security spousal and survivor benefits: Different and not equal
Social Security claiming strategies for singles
Is life insurance through work enough coverage?
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2 Note that if the deceased spouse received a higher Social Security benefit, the surviving spouse may be able to collect the higher amount as a survivors benefit, but they would lose their own, smaller benefit.
3 Center for Retirement Research at BC, “Husbands Ignore Future Widow’s Needs,” June 4, 2019.
4 MarketWatch, “This Social Security mistake can put your spouse at higher risk of poverty when you die,” Jan. 30, 2026.
5 Capital One, The Decision Lab, “Mind Over Money Study, Big-Picture Thinking Leads to the Right Money Mindset,” Jan. 27, 2020.
6 The information provided is not written or intended as specific tax or legal advice.
7 Redfin, “64% of Single Americans Struggle to Afford Housing, Compared With 39% of Married People,” Feb. 12, 2026.
8 Equitable, “Retirement planning solo vs. coupled — what’s different,” March 2025.
9 Borrowing from cash value will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
10 Social Security Administration, “Fact Sheet: Social Security,” 2024.
