In most marriages, it is just one spouse that manages the couple’s finances. Usually it is the husband because the wife may not be interested or want to understand the process of paying bills, investing, taxes, and other money topics.

This arrangement can be disastrous when the husband dies as it creates what is called the “shoebox widow”. The widow may be left with little knowledge or direction on the couple’s financial situation.  Tons of questions arise.  How are the monthly bills being paid?  What is the investment strategy?  What are the passwords to the financial accounts?  How are tax documents accumulated?

All the bills, receipts, and tax records are thrown into a shoebox out of sheer frustration. This is how the shoebox problem begins and it only grows worse.  This can make an already emotional situation even more overwhelming.

Here are some steps you can take now to avoid becoming a “shoebox widow”.

1.  Initiate an open discussion: Start a conversation with your spouse on the topic of personal finance. Discuss how the transition of money management would take place in the event of death.
2. Get involved: Step up and learn about the process of paying monthly bills, the investment strategy, and the make-up of household assets and liabilities. Set up a time each month to discuss finances so there are no surprises down the road.
3. Create an organization system for finances: Online tools are very helpful in compiling all your financial accounts and obligations in one place. If you are not into online tools, create a paper filing system and store in a fire-proof safe.
4. Know how you are protected: Is there an estate plan in place which would include a will or living trust document along with financial and healthcare powers of attorney? A properly drafted estate plan is a wonderful legacy to leave your family. Insurance is an important component of protection. Know what types of polices you own. Do you have life Insurance, disability, long-term care insurance?  Be sure you know how much you own and where the policies are kept.
5. Seek help from a professional: If you are having trouble communicating with your spouse on finances, you may want to hire a financial planner who can get you started on the right path.

Once you have prepared yourself with this knowledge, you will never need to worry about becoming a “shoebox widow”.