Estate Planning During Divorce: What You Need to Know

Divorce changes many parts of your life, including your estate plan. Here’s a simple guide to help you update your estate planning documents during this time.

1. Update Your Will

When you go through a divorce, it’s important to create a new will. This will cancel out the old one and make sure your current wishes are reflected. Make sure to update your beneficiaries and choose a new executor—someone you trust who isn’t your soon-to-be-ex-spouse.

2. Modify Trusts

If you have any trusts set up, take the time to review and update them. Change the beneficiaries and trustees if needed, and make sure the terms still align with what you want after the divorce.

3. Change Beneficiary Designations

Don’t forget to update the beneficiary designations on your life insurance policies, retirement accounts, and any payable-on-death accounts. In many states, the law might automatically revoke your ex-spouse as a beneficiary, but it’s a good idea to double-check and update these designations yourself.

4. Review Powers of Attorney

Revoke any existing powers of attorney for healthcare and finances that name your ex-spouse, and set up new ones. Make sure to inform your healthcare providers and financial institutions about these changes.

5. Consider Jointly Owned Property

If you have jointly owned property, you’ll need to retitle it to remove your ex-spouse’s name if it’s awarded to you in the divorce. Update the deeds to reflect new ownership.

6. Plan for Minor Children

If you have children, make sure your estate plan covers their future needs. Name a trusted person as the guardian if your ex-spouse can’t take care of them, and consider setting up a trust to manage their inheritance.

7. Seek Professional Guidance

Navigating these changes can be complex, so it’s wise to consult with an estate planning attorney. They’ll help ensure your documents comply with state laws. It’s also helpful to coordinate with your divorce attorney to ensure everything transitions smoothly.

Conclusion

Divorce means making some big changes to your estate plan. By updating your will, trusts, beneficiary designations, powers of attorney, and any jointly owned property, you can make sure your plan fits your new situation. For personalized advice on estate planning during divorce, contact us now!