Preparing financially for a marital change

Are you among some 50 percent of married couples who thus far, have managed to avert divorce?

If so, congratulations!

But, ultimately, you'll need to be prepared for another marital obstacle. Odds are that one spouse ultimately will outlive the other.

There may not be much you can do emotionally when your beloved marital partner kicks the bucket. But, why not, at least, be prepared financially for this difficult time?

Funeral arrangements will need to be made, and can prove unnecessarily costly.

There are a variety of caskets, burial vaults and grave liners to select - just when you won't even feel like putting food in your mouth.

But try to hold back your tears long enough to ask for a "General Price List," which lets you examine all prices on a single list, advises Financial Sources Inc., a Bethlehem, Pa. financial planning firm.

This list is required under federal law by the Federal Trade Commission. Plus, funeral directors and cemeteries should give you detailed retail price information over the phone if you ask.

Get a written agreement, and find out your cancellation and refund rights.

Part- icularly if your dearly departed was the primary bread- winner, you'll have a big job ahead of you. You may need to round up an attorney, financial planner and Certified Public Accountant.

First, you'll need to determine where your income will come from and whether it will be enough to support you in the style to which you've been accustomed.

Opening your mail is apt to be a particularly tough task. But beware that if you neglect paying bills, your credit rating could suffer.

"Wherever your income comes from, try to set it up as a direct deposit," the financial planners advise. You often can do this through online banking or as an electronic debit. With gas and electric companies, you can set up a monthly payment based on your average bill. Or, let the utilities deduct the month's balance from your bank account. This way, you won't be delinquent.

Most financial advisers tell you not to make any major decisions for a while. In fact, it may not hurt to wait at least a year before selling a home or making dramatic financial changes.

Of course, you'll need to round up all your financial documents. So, please. Make sure right now that both spouses have access to all financial records in one central location!

You'll also want to reevaluate how safe your money is from market fluctuations. Without as much income coming from your spouse, you may need to play it safer with your investments.

It's possible you may not be responsible for some of your spouse's debts. So consult with an attorney before paying creditors-even if they contact you.

Also, obtain all the benefits for which you're eligible, Financial Sources advises. Possible income might be available from:

• Social security. Visit www.ssa.gov for more information.

• If your spouse is employed, you could qualify for unused vacation time or personal days.

• You'll need to reexamine your spouse's retirement plans. Plans, such as 401 (k)'s, IRAs and pensions may be rolled over, cashed out or both.

• If your spouse served in the armed forces, check what benefits may be available.

If you were covered through a spouse's health insurance plan, you may be eligible for COBRA coverage. You'll need to contact your spouse's employer to apply. Visit www.dol. gov/ebsa/ for more information on COBRA and your health insurance rights.

Spouses Gail Liberman and Alan Lavine are syndicated columnists. Their latest book is "Quick Steps to Financial Stability" (Que/Penguin). You can contact them at www.moneycouple.com.