It's something most of us don't want to think about and couldn't prepare for emotionally if we tried, but the reality of losing a spouse through divorce or death is something that we may one day need to face. Not only is such a loss emotionally painful, it can also be financially painful if you don't address the financial demands that come with this situation. The intricacies of your personal situation will determine how many steps you'll need to take and to what detail, but regardless of how you become single, there are some basic activities you will need to evaluate:

1. Locate important documents. Determine the location of key documents such as your will, trust documents, insurance policies, deeds, stock and bond certificates, and bank and brokerage statements. By locating these documents, you will be able to identify where re-titling is required.
2. Update your beneficiary designations and estate plan. A simple review and update of beneficiary designations on your IRAs, retirement plans, employee benefits, annuity contracts and life insurance policies may be as important as re-titling assets. In addition, have your attorney review your will carefully and make any necessary changes to ensure your current intentions are accurately reflected.
3. Identify retirement money available to you. As either a surviving spouse or an ex-spouse, you also may be entitled to retirement assets. In the case of divorce, your divorce decree will specify those assets. In the event of death, you may have a number of alternatives for taking possession or distribution of those assets. Check with your financial consultant for the most appropriate method. Be sure to notify the Social Security Administration, as it may be possible to be eligible for benefits prior to retirement, at retirement or for minor children. Check your credit status. You'll want to get copies for your credit report and check it for any errors. If you don't already have a credit card, get one so you can start establishing a credit history. And if an ex-spouse has credit problems, write a letter of explanation to the reporting agency so it can be placed in your file.

Once you complete your housekeeping activities, you should:

1. Know your cash-flow needs. Since your household income has most likely changed and possibly diminished, start by identifying your necessary expenses that have to be paid promptly, such as your mortgage, utility bills, food and medical expenses. It may also include education expenses if you have children in college or private school.
2. Complete a net worth statement. This will help you identify what you have and what you owe. You also can gain a better understanding of the potential resources available to sustain your short-term and long-term income needs, especially if your household income has changed or dropped.
3. Review your investment portfolio. Look closely at your investments to see if they match your financial goals, time horizon and, perhaps most importantly, your investment experience and risk tolerance. What may have worked for you in the past as a couple may no longer make sense for you as an individual.
4. Examine your plan for education savings. Identify how much you have already saved for education costs and determine how much you can continue saving on your own. You may be eligible to contribute up to $2,000 annually to a Coverdell Education Savings Account (formerly known as the Education IRA) and the 529 college savings plan may be another alternative that allows you to save tens of thousands of dollars.