Divorce changes many aspects of life, including how to manage and distribute assets after death. A well-prepared estate plan protects financial interests, but divorce requires significant updates. Without adjustments, an ex-spouse could unintentionally remain a beneficiary, leading to unintended consequences.
Updating your will and beneficiaries
Divorce does not automatically remove an ex-spouse from a will or beneficiary designations. If a will names an ex-spouse as the primary beneficiary, that person may still inherit assets unless changes occur. Life insurance policies, retirement accounts, and payable-on-death accounts also require updated beneficiary designations to reflect new wishes.
Reviewing power of attorney and healthcare directives
A power of attorney allows someone to handle financial or legal matters. If an ex-spouse holds this power, revoking it and assigning a trusted individual becomes essential. Healthcare directives also require review. If an ex-spouse remains listed as a medical decision-maker, they may retain control over healthcare choices in case of incapacitation.
Revising trusts and guardianship plans
If a trust exists from the marriage, reviewing its terms ensures alignment with post-divorce intentions. Joint trusts may require dissolution or restructuring. If children are involved, reassessing guardianship plans becomes necessary. Naming a new guardian in case of unexpected circumstances ensures children receive care from a trusted person.
Addressing property and asset division
Divorce settlements divide assets, but estate plans must reflect these changes. If real estate, investments, or businesses were once jointly owned, updating estate documents to show new ownership structures prevents future disputes or unintended asset transfers.
After a divorce, updating an estate plan protects assets and loved ones. Consulting an estate planning attorney ensures legal documents align with new circumstances. Proactive updates prevent complications and create peace of mind moving forward.
