If you just went through a divorce, and have an estate plan, you need to modify your estate plan. Schedule a meeting with your divorce attorney to do so. You need to update the terms and conditions of various parts of your estate to comply with any rulings from your divorce and to ensure you are leaving your money to the right individuals and are trusting the right people with your care.
#1 Meeting the Terms of Your Divorce
When you divorce, your assets are divided up. It if was determined in the divorce, for example, that your spouse would get half of your retirement fund and the entire thing in the event of your death, you need to update the terms of the estate plan to include that information. If you are required to leave your spouse any benefits by your divorce, you need to make sure your estate plan reflects that judgment.
On the flip side, you may have lost out on some assets in the divorce. Perhaps you split the stock that you owned, or perhaps one of you bought the other out of a business. It is common for ownership of property and vehicles to change in a divorce as well. You need to make sure that you remove any assets you no longer have from the estate plan and update the estate plan to show the assets you still have correctly.
#2 Update Your Beneficiaries
For any asset that you don't have to share with your former partner, but your former partner was named as the beneficiary, you need to make sure you change the information. If you don't, your former partner will remain the beneficiary.
Instead, update the beneficiary to someone more appropriate. Perhaps you name one of your children or your parents or a sibling. Choose someone who you would want to have that particular asset or who deserves your money.
Be sure to change this information in your will and with whoever holds that assets or policy. For example, if you have a life insurance policy, you are going to want to contact the life insurance company and change the beneficiary with them and within your will.
#3 Update Your Living Will
Don't forget about your living will. Your living will determine who will make medical decisions for you and who will take over your finances if needed. Generally, most people have their spouse assigned to this role because their spouse knows their medical wishes and should be capable of taking over financial aspects as well. Now you need to find someone else who you trust to make these medical and financial decisions for you and who is willing to do the job.
Now that your divorce is finalized, you need to sit down with your divorce attorney can make adjustments to your estate plan that accurately reflect your new reality.Share