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Divorce isn’t just about dividing the present—it’s about safeguarding the future. Right now, you’re likely navigating a whirlwind of asset division, custody agreements, and legal paperwork. But there’s a deeper, quieter concern lurking in the background: how this life-changing event could unravel the plans you’ve meticulously crafted for the years ahead.
Think about it. The will you wrote years ago? It might still name your soon-to-be ex-spouse as your primary beneficiary. The trust you established to protect your children’s future? It could be tangled in the aftermath of your separation. And those beneficiary designations on retirement accounts or life insurance policies? They may no longer align with your new reality.
Divorce doesn’t just disrupt your present; it can upend your long-term plans, leaving your estate vulnerable to outcomes you never intended. That’s why it’s essential to pause amidst the chaos and ask yourself: Are the pieces of my estate plan still working in my favor?
The truth is, no matter your net worth, ignoring this aspect of your divorce could jeopardize your ability to protect yourself, your loved ones, and the legacy you’ve worked hard to build. But you don’t have to navigate this alone. With the right guidance, you can ensure your estate plan reflects your new chapter, offering peace of mind for what lies ahead.
Divorce may feel like it’s taking everything, but your future doesn’t have to be part of the deal. Take control now to protect yourself.
If you are going through a divorce and haven’t done a complete estate plan, you are still not exempt from the impact. After a divorce is finalized, your spouse will no longer be automatically considered your personal representative, and your spouse will no longer automatically receive property at the time of your death. If you haven’t finished (or started) your estate plan, that should be one of the first things you tackle after your divorce, so you can be certain that your wishes will be honored if you die or are incapacitated. However, even without an estate plan, you likely have retirement accounts and insurance policies through your job that will list your spouse as a beneficiary. When you are going through the divorce process, start by looking at any policies that list your spouse so you can make the appropriate changes.
Even if you have a solid plan for what to do after your divorce, you need to make sure you are protecting yourself during the divorce process. Because of the complexities of asset division, it’s not the time to make any major changes, and you should never do anything that could be considered hiding assets from your spouse. However, there are things that you can do.
When it comes to beneficiary designations on your accounts, always follow the advice of your attorney. There are some accounts where you should be free to change the primary beneficiary even before your divorce is final, but there are others that should not be amended during the process. Do not make any financial moves during the process without speaking to your attorney first.
For many people, when they think of estate planning, they think of the will. If you have a will that was done prior to your divorce, what happens to that will after your divorce if you don’t update it? The divorce itself will revoke your ex-spouse’s right to receive assets at your death. If you have named your spouse in the will, during probate, the court will likely redistribute those assets to an alternate beneficiary. However, because this will require going through probate and leaving the decisions in the hands of a judge who will only be making decisions based on assumptions, it is not ideal. The divorce itself will also not automatically remove your spouse from being named as a beneficiary on other accounts. Trusts often fall into this category, since if you have named your spouse as a trustee, you will have to amend the document to remove them, even in the case of divorce. While it is not automatic that your ex-spouse will be able to receive any of your estate if you die after the divorce is final but before you update your estate, it will make the situation much more complicated and drawn out. Because of this, your attorney should help you formulate a plan for updating your estate after your divorce is final.
Divorce is a challenging journey, but it’s also an opportunity to reassess and rebuild. By addressing the impact of your divorce on your estate planning, you can regain control and secure a future that aligns with your new reality. Don’t let outdated documents or overlooked details put your financial stability at risk.
Whether it’s revising your will, updating beneficiary designations, or creating new safeguards for your assets, taking proactive steps now ensures your estate plan supports your goals moving forward. You’ve already weathered the hardest part—now it’s time to protect the future you deserve. If you’re going through a divorce, or you’re ready to file, contact my office today.