A final divorce decree settles the financial and legal issues between you and your ex, but it doesn't change your estate planning documents. Find out why it's important to revise your estate plan when you divorce.
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by Jane Haskins, Esq.
Jane has written hundreds of articles aimed at educating the public about the legal system, especially the legal aspe...
Updated on: August 6, 2024 · 4 min read
A divorce doesn't just disrupt your present-day life. It also impacts your plans for the future—including your estate plan.
If you prepared a will while you were married, you probably left money and possessions to your spouse. You also may have named your spouse to handle finances and make medical decisions if something happened to you. Once you're divorced, you probably don't want your ex running the show or running off with your money. But if you don't revise your estate planning documents, that's exactly what could happen.
Even if you've never done any estate planning documents, there's a good chance that your ex is the beneficiary of a life insurance policy, retirement account, or "payable on death" bank account. This means your ex will probably get the money, unless you name someone else.
Here are some important documents that may be due for an update in light of your divorce.
If you have a will, you probably also signed these documents:
If you have named your ex or in-laws in any of these documents, you'll probably want to create new ones and choose someone else. You can do this at any time—you do not need to wait until your divorce is final.
Your state's laws may allow you to create a new will and other estate planning documents during the divorce process, or you may have to wait until the divorce is final. There are several good reasons to prepare a new will—or create a will for the first time—after a divorce:
To revise your will, you'll need to revoke your old one and have a new one drawn up. Never try to change a will by crossing things out and writing in the margins.
If you've established a revocable living trust for yourself or a trust for your children, it's important to revisit these documents in light of your divorce. Many couples set up joint trusts, or they name each other as trustees who will oversee the assets in the trust after one spouse's passing. Your ex also may be a beneficiary of your trust.
This means that if you do not revise your trust, your ex could end up with your assets. Or, your ex could control the way your money is spent for your children.
When someone passes away, there are quite a few things that are not part of the "estate" handed down through a will. Instead, on your passing, these assets go directly to the beneficiary you've designated—even if that person is your ex. These include:
After your divorce is final, contact the institutions and companies that have your accounts and policies. Find out who is listed as a beneficiary and update this information if you need to. Don't assume beneficiaries have been updated just because you've been awarded something in the divorce decree.
Divorce changes your relationship with your ex and your former in-laws, but it doesn't automatically change your estate plan. To avoid unintended results in the future, take the time to revise your powers of attorney, will, trusts, and beneficiary designations to align with your new life.
If you need to create a new will, trust, or powers of attorney, LegalZoom can help. Preparing your estate planning documents through LegalZoom is fast and affordable. Get started by answering a few questions.
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