Divorce is a significant life event that can impact various aspects of your life, including your financial and legal affairs.
One area that often requires attention after a divorce is your estate plan.
Update beneficiaries
In 2022, 989,518 people sought divorce. If you have completed a divorce, you need to protect your estate. The first thing you should do is review and update the beneficiaries listed on your life insurance policies, retirement accounts and any other accounts that allow you to designate beneficiaries. For example, you may want to remove your ex-spouse as a beneficiary and designate someone else, such as your children or a trusted family member.
Revise your will
Specify how you want to distribute your assets among your heirs and ensure that it reflects your current wishes. This is also an opportunity to appoint a guardian for any minor children you may have.
Reevaluate powers of attorney
If your ex-spouse had powers of attorney in your estate plan, revoke those powers. Consider appointing someone else you trust to make financial or healthcare decisions on your behalf if you become unable to do so.
Review trusts and property titles
If you have established trusts or jointly owned properties, assess whether you need to update or restructure them in light of your divorce. Adjusting the terms of trusts and clarifying property titles can help prevent complications in the future.
Consider life changes
Beyond the legal aspects, consider any life changes that may impact your estate plan. This could include a change in your relationship with family members, new additions to your family or alterations in your financial situation.
Ensuring that your estate plan aligns with your new circumstances is important for securing your assets and providing clarity for your loved ones.