Consider making these essential estate planning updates during a divorce.
Divorce is a major life change that impacts more than your emotional and financial well-being. In fact, it can also drastically alter your estate plan. Many people forget that documents created during marriage are designed for a joint future. Once that future changes, those same documents could unintentionally leave control, decision-making authority, or assets in the hands of your soon-to-be ex-spouse.
If you are going through a divorce in Florida, reviewing and updating your estate plan should be a top priority. Below are the most critical estate planning updates to make with your Millman Law Group attorney to ensure your wishes remain protected.
Rethink Your Beneficiary Designations
Beneficiary designations determine who receives the proceeds from your financial accounts after you pass away. These can include checking, savings, investment accounts, IRAs, life insurance policies, and other assets that bypass your will and transfer directly to named individuals.
During a divorce, it’s important to review and update every beneficiary designation to ensure they reflect your current wishes. Many people overlook these details, leaving their ex-spouse listed as a beneficiary long after the relationship has ended.
Keep in mind that retirement accounts like 401(k)s often follow employer or federal rules that may require spousal consent to change beneficiaries. Work with both your estate planning attorney and your plan administrator to make the necessary adjustments while staying compliant with the law.
Revise Your Estate Planning Documents Before the Divorce Is Final
Estate planning documents such as your Will, Durable Power of Attorney, and Healthcare Surrogate Designation need a full review during divorce proceedings. You don’t want your former spouse making major financial or medical decisions for you or inheriting assets you no longer intend to leave to them.
Even though Florida law typically treats an ex-spouse as predeceased once the divorce is finalized, this protection does not apply until the divorce is complete. During the interim, your current documents remain in effect, meaning your soon-to-be-ex could still have control if something unexpected happens.
A smart approach is to create temporary documents during the divorce that reflect your current wishes. Once your divorce is finalized, your estate planning attorney can help you update them again for long-term protection.
Update Your Property Deeds
Divorce settlements often determine who will keep the marital home or other shared real estate, but the legal ownership doesn’t automatically change when the divorce decree is issued. Married couples typically hold property as Tenants by the Entirety, which changes to Tenants in Common after divorce.
As Tenants in Common, each person owns a 50% share of the property. If one person passes away before updating the deed, their share will go through probate, potentially delaying the sale or transfer and leading to unintended consequences for heirs.
After your divorce is finalized, make sure to update the property deed to reflect the new ownership structure and prevent any complications.
Why Working with an Estate Planning Attorney Matters
Navigating a divorce is already challenging, and the added complexity of updating your estate plan can be overwhelming. An experienced Florida estate planning attorney can help you:
- Review and update your legal documents to reflect your current wishes.
- Ensure all beneficiary and property updates comply with state law.
- Avoid probate complications or accidental inheritances.
- Protect your finances and decision-making authority during and after divorce.
Protect Your Future with Proactive Planning
At Millman Law Group, we guide clients through every stage of estate planning, including during life transitions like divorce. Our team ensures your plan reflects your present goals and secures your financial future.
If you’re navigating a divorce, contact our office today to schedule a consultation and learn how to protect your estate.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.