People face a real hard time after a divorce. You have to worry about a lot of things at a time- who will get the child custody? how much you will have to spend on child support and spousal support? what will happen to the joint property? where will you going to live? and so many other things. And if the separation is acrimonious, then you could be in a very tough situation.
If you have a recent divorce, then I think you should rethink and replan your estate planning right now. The old plan will not be going to work. Our article shares some necessary steps that you should know about estate planning after divorce.
Redraft Your Will And Trust
People usually make their spouse executor and trustee to their property. You want to change that after divorce, right? The first thing you should do after a separation is to remove your ex-spouse as the trustee and executor. Otherwise, he/she will have control over your assets and even receive some portion of your assets.
Select A New Power Of Attorney
A power of attorney (POA) is a crucial part of estate planning. If you name someone your power of attorney, he/she can make many crucial financial decisions for you. So if you had a power of attorney assigning your ex-wife/husband, you need to revoke it immediately. Then you should administer a new POA naming your relatives or friends.
Change Your Health Care Proxy
The health care proxy is a document that allows you to name someone to make healthcare decisions for you in case you are unable to make one. People typically appoint their spouse to make that decision.
If you still have a good relationship with your ex, then it could be okay to let him/her make that decision. But in most cases, you should change it. Most importantly, you should appoint someone who is living close to you.
Rethink About Guardianship
If your divorce is a result of abuse, then you have to think about guardianship seriously. If you pass away, the custody of your minor children will go to your ex. If you believe it will not be a good thing for your children, you should assign a guardian for your children.
Ensure That You Have Trust For Your Minor Children
If you don’t have trust, then your ex-spouse will have financial control over your minor children if you die. You may not want that to happen. In some cases, there are severe substance abuse issues. You want someone to manage your finance for your children who are responsible and trustworthy.
Give Attention To Your Life Insurance Agreement
Don’t forget to maintain your life insurance under your divorce agreement. Review your obligation with your attorney to maintain it under your divorce agreement. If you don’t, then it could result in litigation.
Look Into Your Beneficiary Designation
People often forget the retirement plan beneficiary designations. It’s more important than you think. Ensure that your beneficiary designation is consistent with your divorce agreement terms. If you forget to update it and die, then it could end up in litigation. Remove your ex as the beneficiary.
Pay Attention To The Prenuptial Agreement
If you think about remarrying right after your divorce, make sure that you have a prenup agreement. You married once. So I guess you don’t want to mess it up again.
People often don’t take enough initiation about estate planning after divorce. As a result, they had to deal with many legal issues in the later period of their life. Things that are easier to handle could be complicated after a certain period.
So, after a divorce, don’t rest easy. I know it’s a tough time and nerve-racking experience, but you have to think through for you and your children’s future. Estate plan is not something to plan just once in a lifetime. You need to replan and redesign it depending on your situation.
I think it’s not easy to make and execute decisions about estate planning, especially right after your divorce. You may need some professional help.
If you find it difficult to deal with all by yourself or think it may be helpful to get some legal advice regarding divorce and estate planning, we always want to help you. Contact us anytime with your legal problems. We work hard for our clients to give some excellent solutions.