Going through a divorce is very often a difficult and frustrating time. While there may be many long and drawn out processes to go through, and the entire situation may feel overwhelming, it is imperative that you don’t ignore the necessary adjustments you must make to your estate plan.
Estate Planning and Divorce: What Considerations Do You Need to Make?
As with any other significant life event, you will want to review and update your estate plan after going through a divorce. If you do not update your estate plan, your former spouse might receive assets or remain in important roles that you no longer want them to have. The following are components of your estate plan that you will want to review and make the necessary updates to after going through a divorce:
- Updating your will
- Updating your powers of attorney
- Updating your beneficiary designations
- Updating your property titles and rights of ownership
Updating your will: What to know
In the case of divorce, you may no longer possess assets that you previously had, or you may acquire new assets as a result. In any case, because of this, you will want to update your will to account for these lost or gained assets and what you would like done with them following your death. In addition, you will want to take a look at, and perhaps update depending on your situation: your executor, your beneficiaries and any instructions related to asset distribution upon your death.
Updating your powers of attorney: What to know
Your power of attorney documents designate those who you will want to care for you, either medically, financially or both, should you find yourself no longer able to do so on your own. As a result of the divorce, it is unlikely that you will want your former spouse to handle these duties. As such, you will want to review and make the necessary updates to your powers of attorney.
Updating your beneficiary designations: What to know
You will want to take a look at any beneficiary designations, as it is likely that your former spouse is listed as a beneficiary and you no longer want them to be. If you do not update these designations, your former spouse can receive assets you do not want them to have after your death.
Updating your property titles and rights of ownership: What to know
Oftentimes in divorce situations, property can change hands, whether that is a house, car or other property. You will want to ensure that any property titles or rights of ownership for your property are updated following your divorce.
It is important to keep in mind that divorce is not the only scenario after which you’d update your estate plan. It is a good idea to periodically review and make necessary updates, even if you don’t experience a major change in life.
For any questions and assistance regarding the creation or updating of your estate planning documents, or any of your other estate planning needs, we are here to help. Contact us today to learn more about how we can work with you.
For more information regarding various estate planning and elder law topics, view our resources page, where you will be able to find previous blog articles, newsletters and our informative webinar series.
