Divorce is a life change requiring estate planning updates.
The papers have been signed.
It is official.
You are divorced.
You can start the next chapter.
According to a recent Journal Enterprise article titled “5 Estate Planning Moves If You Are Getting Divorced,” this new start involves updating your estate plan.
Start with your medical and your financial power of attorney.
Did you name your ex-spouse as your acting agent on one or both of these?
If yes, you will want to select someone else sooner rather than later.
If you were to become incapacitated, would you really want your ex to make your healthcare and financial decisions.
In short, your life is in the hands of your ex and he has access to your finances and accounts if you are incapacitated.
Next change any beneficiary designations or accounts.
You may not be able to do this before the divorce is finalized.
What accounts should you consider?
Review and change life insurance policies, retirement accounts, and pension designations.
Doing so will ensure these pass to someone other than your ex.
Does the rest of your estate probably passes either through a will or a trust?
If yes, then you will want to change these to protect assets passing through them from your ex.
A will is especially important to update if you have sole custody of your children, so you can name another individual as a guardian should you die while they are minors.
Do not delay these updates.
If you do, your ex could make out like a bandit.
Reference: Journal Enterprise (March 20, 2019) “5 Estate Planning Moves If You Are Getting Divorced”