Divorce is a process that no one truly wants to go through. However, it is a reality that many couples must face. Handling the couple's assets is one of the many issues arising during a divorce. After a divorce, it is important to reorganize your estate plan to reflect your new situation. An estate plan allows you to prepare for handling your assets in case anything happens to you.
1. Update Your Will and Trust
Your will and trust decide how your assets will be distributed to your beneficiaries upon your death. After a divorce, you want to update your will and trust to ensure your ex-spouse is not included as a beneficiary when you pass. Instead, you should name new beneficiaries such as your children or close family members. You might also want to revise the terms of any trusts or wills that establish how the assets are to be handled.
2. Consider Guardianship
If you have minor children, you will need to think about guardianship. You should update your will and ensure it names a suitable guardian for your children, especially if custody arrangements are made. On the other side, if your ex-spouse is the named guardian for your children and you want to change that, you will need to talk to a lawyer to know the next step.
3. Update Your Beneficiary Forms
You may have several non-probate assets, such as life insurance policies, retirement funds, or even bank accounts that are set to pay out to beneficiaries when you pass away. After a divorce, you must update the beneficiary information on these policies to ensure your ex-spouse is no longer listed. Doing this is important since these policies pay out to the named beneficiaries, and it is common for spouses to name each other as beneficiaries under these policies.
4. Create a New Power of Attorney
A power of attorney is a document that grants someone the legal authority to act on your behalf. You may have given your ex-spouse power of attorney in the past, but you may want to revoke it after a divorce. Create new documents that name someone you trust to have power of attorney over your financial, legal, and medical issues.
5. Update Your Trusts and Estate Plan
If you and your ex-spouse have trusts together, you must reorganize or dissolve them. If you have advanced estate planning structures like charitable lead trusts or generational skipping trusts, you might need to review and update them. You want to make sure that your plan reflects your new reality.
Boca Raton Divorce Lawyer
Estate planning after a divorce is critical to securing your financial future and protecting your loved ones. At Haber Legal, we specialize in estate planning services, including post-divorce estate planning. Contact us today at (855) 729-8252 to schedule a consultation and ensure your estate plan aligns with your new circumstances.