Divorce changes many aspects of your life, including your estate plan. Updating it ensures your wishes are followed and your assets go to the right people. Follow these steps to stay protected.
Create a new will
After a divorce, write a new will. Many states treat an ex-spouse as if they passed away before you, but not all. Avoid confusion by drafting a new will. Update your beneficiaries to match your current wishes. Choose the right people to inherit your property and assets.
Update guardianship for your children
If you have minor children, naming a guardian is essential. The surviving parent usually gets custody, but what if they pass away before you? Choose a guardian to ensure your children’s care, including education and health needs.
Revise power of attorney and health care agents
During marriage, many people name their spouse as their financial or health care agent. Some states may automatically disqualify an ex-spouse as an agent. But it is best to update these documents yourself. Create a new financial power of attorney and health care directives. Choose someone you trust to make these important decisions.
Review beneficiary designations
Certain assets, like bank accounts and life insurance policies, bypass your will. They transfer through beneficiary designations. After a divorce, review these accounts:
- Bank accounts
- Investment accounts
- Pensions
- IRAs
- Retirement accounts
- Annuities
- Life insurance policies
Contact your financial institutions and update your beneficiaries. Make sure your assets do not unintentionally go to your ex-spouse. Consulting an attorney can provide valuable guidance and ensure all necessary changes to your estate plan are legally sound.
Although divorce can be challenging, revising your estate plan does not have to be complicated. If you are considering remarriage, consulting a family law attorney about prenuptial agreements can offer additional protection. These proactive steps will provide clarity and security for your future.