Estate Planning After Divorce: Essential To-Do List

Going through a divorce can be one of the most challenging experiences in a person's life. Amidst the emotional upheaval and logistical challenges, it's easy to overlook a crucial aspect of your post-divorce life: your estate plan. Whether you are newly divorced or still working through the process, updating your estate planning documents is vital to safeguard your interests and those of your loved ones.

Here’s a  to-do list to help you effectively navigate your estate planning after divorce.

1. Update Your Powers of Attorney

Power of Attorney documents grant someone the authority to make decisions on your behalf if you become unable to do so. It’s never too soon after a divorce is commenced to remove your ex-spouse as a decision maker.  This applies to financial and medical powers of attorney. 

2.  Secure Digital Assets

Digital assets include online financial accounts, social media, email and documents stored in the cloud.  Securing these assets helps prevent unauthorized access by your ex-spouse and safeguards your financial and personal data.  Change passwords immediately, enable two-factor authentication and consider privacy settings on social media to limit what your ex can see.

3.  Review Your Will or Trust

Divorce fundamentally changes your life and priorities, which often extends to your will. Remove your ex-spouse as a beneficiary and as trustee of any bequest to your children.  It’s a great time to reassess who you want to designate as beneficiaries. 

4. Modify Your Beneficiary Designations

Your divorce may affect various accounts that require a beneficiary designation, including life insurance, retirement accounts and annuities.  Beneficiary designations override wills, so it’s essential to ensure that these designations align with your current wishes.  However, in most states, once either spouse files divorce papers with the court, neither party can legally change their beneficiaries without the other's permission until the divorce is final. With this in mind, you may want to consider changing your beneficiaries prior to filing divorce papers, and then post-divorce you can always change them again to reflect whatever is determined in the divorce settlement.  Consult with your attorney before making any changes. 

5. Assess Your Trusts

If you have established a trust, it may also need modifications, such as removing your ex as the successor trustee and beneficiary. 

Consult with an Estate Planning Attorney

Divorce is a significant life event that deserves the attention of a qualified legal professional.  Consulting with one of the experienced estate planning attorneys at Fiffik Law Group can ensure your assets are protected, documents are comprehensive, legally binding, and reflective of your current desires.