Divorce is undoubtedly one of the most challenging times life has to offer. Untangling the life you knew as a married person will definitely affect every aspect of your being, even your financial situation.
If you have recently gone through a divorce, reviewing the legal commitments you have made earlier in life is crucial to ensure your assets are protected and distributed according to your wishes.
What key estate planning elements should you revisit after a divorce?
Review wills and trust
Revisiting your will after a divorce is integral to protecting your assets. Your ex-spouse is mostly likely named in your will, possibly as a primary beneficiary. You can also make several changes, like designating a new executor or redistributing your assets among your children, family members, or charities.
Updating this as soon as possible ensures that your estate plan continues to reflect your current wishes.
Check your beneficiary designations
It is a common oversight for divorcees to forget about beneficiary designations that are not covered by their wills, such as retirement plans, life insurance policies and bank accounts.
Failing to update these designations following a divorce can lead to litigation and unnecessary stress for your loved ones after your passing.
Revoke powers of attorney
Powers of attorney are powerful legal tools that authorize someone to make decisions on your behalf in case you are incapable. If this person is your ex-spouse, you must revoke it and designate someone else close to you as soon as possible. Updating these documents ensures that your personal and financial matters will be in trusted hands.
As emotionally taxing as it can be, revisiting the legal commitments that you made before your divorce is crucial, particularly when significant assets are at stake. It is not just about securing your assets but also about taking charge of your life and moving on. Life changes, and so should your estate plan.
