Divorce changes many aspects of life, including your estate plan. It is crucial to update your documents to reflect your new situation. Here are key steps to consider after a divorce.
Create a new will
After a divorce, your estate plan needs a fresh start. If your ex-spouse was a beneficiary in your will, they may no longer inherit under certain state laws. However, not all states automatically disqualify an ex-spouse. To ensure your wishes are clear, draft a new will. Choose new beneficiaries who you want to inherit your assets.
Update guardianship for your children
If you have minor children, it is important to appoint guardians. Your ex-spouse will have custody if you pass away. But what if they are not around? Designate a guardian who will care for your children’s needs, including education and health care. This provides peace of mind and security for your children’s future.
Revise power of attorney and health care directives
During your marriage, you may have named your spouse as your power of attorney or health care agent. This means they could make financial or medical decisions for you. Some states remove an ex-spouse from these roles automatically. Regardless, it is wise to appoint new agents. Choose individuals you trust to handle your affairs if you become unable to do so. This prevents unwanted control by an ex-spouse.
Check beneficiary designations
Your will does not cover all assets. Accounts like life insurance, bank accounts, and retirement funds transfer through beneficiary designations. Review and update these designations post-divorce. Ensure they reflect your current intentions. Otherwise, your ex-spouse might still receive these assets. Contact your financial institutions to update these records.
Consult family members about their plans
Your family members may have included your ex-spouse in their estate plans. They could be named as a beneficiary or fiduciary. Encourage them to review and update their documents. Consider consulting an experienced attorney to ensure your updated estate plan aligns with legal requirements and fully protects your interests.
Divorce can be overwhelming, but updating your estate plan is straightforward. You can use online resources for state-specific forms or seek help from an estate planning attorney. Taking these steps secures your future and ensures your estate reflects your current life.