While divorce isn’t something people plan for, it’s important to realize how divorce can affect your finances and your estate. Your estate plan, in particular, will be affected by a divorce because it will likely impact the ownership of assets and property. The Millman Law Group can help you navigate the complexities of updating your estate plan after a divorce so that your estate plan remains satisfactory and appropriate for your family.
How You Can Prepare for the Possibility of Divorce
The negative attitude once associated with prenuptial agreements has begun to disappear. Prenuptial agreements are now relatively common, as the practical advantages of the document become more apparent. A prenuptial agreement is a contract between the engaged couple, which takes effect as soon as the marriage is legal.
This agreement can cover factors like property division upon divorce, financial responsibilities during marriage, spousal support, and the distribution of assets when a spouse dies. A postnuptial agreement can accomplish the same things, but this agreement is entered into after the marriage.
How Divorce Impacts the Division of Assets
Make sure you know what assets may be divided in the divorce and which are considered separate property. Regarding retirement and pension accounts, the portion of the account accumulated during the marriage may often be subject to division in the divorce. This is why it is best to consult with your estate planning attorney to make sure that the assets you end up with are protected in the future.
Review Essential Documents
Divorce affects your estate plan in many ways, so it’s essential to review all crucial documents after the divorce is complete. You will most likely need to change bequests in your will or provisions in a trust. You may also need to appoint a different personal representative for your will or amend a trust to appoint a replacement trustee.
If your ex-spouse was named as your agent in an advance directive or power of attorney, you might also want to revise or revoke those documents.
Make Changes to Beneficiary Designations
Your ex-spouse is likely listed as the beneficiary of your retirement accounts, life insurance, and financial accounts. However, when you divorce, you should review these accounts as soon as possible and make desired changes to the listed beneficiaries. Some laws may not permit you to remove your spouse as a beneficiary while the divorce is pending, so check with your attorney before making changes.
There are a number of ways divorce affects your estate plan, and your attorney at The Millman Law Group will make sure that you don’t miss any areas that need updates or corrections.
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.