Divorce is a major life change that requires rethinking various aspects of your future, especially estate planning.

Many people believe their divorce settlement has addressed all legal changes, but this isn’t true. Estate planning for divorced individuals involves making careful adjustments to ensure your wishes are clear and legally binding. In this blog, we’ll debunk common myths and answer frequently asked questions to help you protect your assets and make sure your estate plan reflects your new situation.

Common Post-Divorce Myths

Myth: Since I am divorced, my ex-spouse will receive nothing if I die.

Fact: This may not be the case, depending on federal and state law. Some beneficiary designations and provisions in estate planning documents may automatically be revoked after a divorce if your spouse was named as the beneficiary, while others may not. For example, retirement plans governed by the Employee Retirement Income Security Act (ERISA) of 1974 may pass to your ex-spouse if you do not change the beneficiary designation after your divorce is finalized. It is much better to update your estate plan or create one after a divorce rather than leave it to chance.

Myth: I cannot update my will or trust because I am paying child support or alimony.

Fact: Unless you have a contractual will (which is rare), you are free to update your estate planning documents any time after your divorce is finalized. You may need to factor in ensuring that any alimony or child support claims that survive your death are paid. If you are paying child support or alimony, let your attorney know so they can factor those calculations into your plan and ensure that you abide by any requirements under your divorce decree while protecting your hard-earned money and property for your loved ones.

Myth: Since I am divorced, my ex-spouse no longer has any authority under my financial and medical power of attorney documents.

Fact: This may or may not be true, depending on your state’s law and the terms of your power of attorney documents. Either way, it is best practice to ensure that your estate planning documents are up-to-date so that your intentions are clear. Although your ex-spouse’s authority may have been revoked due to your divorce, in an emergency, a third party looking at a pre-divorce financial or medical power of attorney may not be aware that you are divorced and can only rely on what the document in front of them says. In these cases, you want to ensure that a third party knows who should act on your behalf by having up-to-date powers of attorney.

Once you have created new financial and medical powers of attorney, let your hospital, physicians’ offices, banks, and anyone else who may have a copy of your old powers of attorney on file know that you revoked the old one that named your now ex-spouse. If necessary, provide them with a new copy naming your new agents.

Common Divorce and Estate Planning Questions

Question: The divorce decree divided all of our money and property; the legal work is already done, right?

Answer: Your divorce case may be final, but to ensure that you and the things you have worked hard for are fully protected, you must go through the estate planning process. Even if you created a plan while you were married, you are now a single person in the eyes of the law. While most people think of an estate plan as laying out one’s wishes for what happens at death, some tools address how you and your affairs should be managed if you are alive but cannot manage them yourself. Now that you are divorced, your plans for whom you want to act on your behalf have likely changed. Plus, the divorce decree may have divided your accounts and property, but it did not let you express who you want to leave them to in the event of your death now that you are no longer married. Estate planning lets you decide whom you want to receive your money and property and how those chosen beneficiaries should receive their inheritance.

Question: What should I discuss with an estate planning attorney after my divorce?

Answer: Now that you are no longer married, your plans for your money and property may be less clear than they once were. First, consider whom you would like to receive your money and property after your death and how you want them to receive their inheritance. Second, be prepared to discuss whom you want to handle your affairs for you when you cannot do so. Third, ensure that the terms of your estate plan fulfill any requirements in your divorce decree regarding child support and alimony.

Question: Do I have to get my ex-spouse’s consent to make a new will or trust?

Answer: Generally, no. Once divorced, you are treated as a single person under the law for estate planning purposes. As a result, you do not need an ex-spouse’s permission to create or update your estate planning documents. These documents name the people you want to act on your behalf when you cannot do so and outline your wishes for the accounts and property that are now solely in your name.

Davis Law Group Can Help

Navigating the complex landscape of estate planning and divorce necessitates careful consideration and timely updates to your legal documents. Ensuring that your estate planning reflects your current situation post-divorce is crucial for protecting your financial and personal interests. For professional guidance and to make certain your estate planning needs are thoroughly addressed, contact Davis Law Group today. Our experienced attorneys are ready to assist you in crafting a comprehensive plan that safeguards your future, honors your wishes and gives you peace of mind.