What Changes Should You Make to Your Estate Plan After Divorce?

On Behalf of | May 28, 2024 | Estate Planning

Divorce is one of those significant life events that necessitate a thorough review and update of your estate plan. Otherwise, your ex could unintentionally receive assets or remain in positions of power contrary to your current wishes. This could lead to disputes and legal implications affecting your loved ones when you are gone.

It’s important to revise these aspects of your estate plan post-divorce and make the proper adjustments to avoid issues later on.

Last will

Divorce will likely change your financial situation, depending on the outcome of the property division process. You may no longer own some assets you previously included in your will or you may need to address new assets acquired after the divorce.

Update everything in your will if you must, from the executor, beneficiaries and any specific instructions regarding asset distribution to reflect your current wishes.

Beneficiary designations

You may want to update beneficiary designations on proceeds from a life insurance policy, payable-on-death or transferable-on-death accounts to ensure the right people receive these assets and benefit from your estate.

Powers of attorney

You probably don’t want your ex to make healthcare or financial decisions for you anymore when you are incapacitated. Appoint someone you trust to act in your capacity and replace your ex if necessary.

Property ownership and titles

If any property exchanged hands after divorce, ensure the property ownership and titles reflect your new marital status. This includes other significant assets like vehicle and investment accounts, which should be properly retitled if necessary.

It’s generally advisable to update your estate plan periodically to avoid unintended consequences and ensure your wishes are honored. Reaching out for qualified estate planning guidance can help ensure your revised plans meet all the legal requirements and protect your loved ones’ interests.