Divorce can bring about major life changes, including financial and familial arrangements. Amidst the emotional upheaval, it is important to address practical matters, including your estate plan.
Revisiting and revising your estate plan during a divorce ensures that your wishes come to fruition and that your assets undergo distribution in line with your current circumstances.
Reviewing your will and beneficiaries
Review your will and beneficiaries as you navigate divorce proceedings. Your ex-spouse may be a beneficiary in your will or as a recipient of assets in your estate plan. Updating these documents ensures that your assets go to the individuals you choose rather than potentially defaulting to your former spouse. Consider appointing new people to fulfill roles such as executor or trustee if you no longer want your ex to hold these responsibilities.
Assessing powers of attorney
Powers of attorney grant people the authority to make decisions on your behalf in case you suffer incapacitation. During divorce, you may want to reassess who you trust to handle your financial and medical affairs. If you gave your ex-spouse power of attorney, you may want to appoint someone else whom you trust more. This may be especially worthwhile if there is animosity between you and your ex-partner.
Updating guardianship designations
If you have children, revisiting your estate plan involves updating guardianship designations. During divorce, custody arrangements may change. Ensure your estate plan aligns with these arrangements. Review the named guardians for your children and make any necessary updates.
CNBC reports that 67% of Americans have no estate plans whatsoever. Taking proactive steps to create an estate plan and revise it amid major life changes provides peace of mind. It also protects your interests and those of your loved ones.
