A divorce is a life event that comes with a multitude of things to handle. Even as both the parties decide to separate amicably, many things change, and one of the challenging parts is estate planning. After divorce, it is recommended that you update your trust or will.
If you’re asking how, here’s everything about estate planning and divorce, and what you should consider doing.
Revocation of Existing Will
If you had started estate planning with your spouse, there might be a need to update the will, especially in case your spouse is the executor of the will. And if you have children and don’t opt for co-parenting, you might also have to review the guardian that you chose for your children in the will. And in case you don’t yet have a will, it is good to think of creating a will post-divorce.
Health Care Proxy Update
If you’ve chosen your spouse as the healthcare proxy— someone who can make medical and health-related decisions for you, changing that and assigning someone else as your healthcare proxy can help. However, this is a decision you can take based on your relationship with your spouse after the divorce.
Naming New Beneficiaries
The beneficiary that you name in your will inherit the money, and many people prefer to name new beneficiaries after divorce. When doing so, make sure that you also update your retirement accounts, TOD accounts, and life insurance accounts that are also a part of the estate plan.
Updating Powers of Attorney
Many couples give the Power of Attorney to their spouses after marriage. And after divorce, a majority of people, if not every individual, would want to revisit their decision of making their spouse the medical or financial power of attorney.
Reviewing the Prenuptial Agreement
If you have signed a prenuptial or postnuptial agreement, it is a good idea to go back to the document to check what your spouse is entitled to. And when you intend to make things simpler for your future, it can be beneficial to consider a prenup if you plan to remarry after your divorce at any point in time.
Setting up a Trust
After divorce, it can be beneficial to consider a trust so that you can direct funds to child support. It can also prove to be beneficial for your children in an event such as your demise, especially if you wouldn’t want your spouse to be the guardian of your children.
While these are some of the important aspects related to assets that one should revisit and replan after a divorce, it is recommended that you take a look at all the documents of your assets and properties and protect what belongs to you.
While a major life episode such as divorce is challenging to navigate through, considering all its consequences and repercussions is something that cannot be missed. And the good news is that you don’t have to do it all alone. You will easily find expert estate planners to help you with the process to significantly reduce stress.