Estate Planning Considerations for Divorcing Couples
Reviewing your estate plan and existing wills is an essential consideration for any divorcing couple, considering the changes that are about to occur in your lives. When it comes to your estate plan with a divorce, you should consider your financial power of attorney, health care proxy, and living will. Especially if you are going through a contentious divorce, there are several changes you’ll want to make. Let’s take a closer look.
What Parts of My Estate Plan Need to Be Changed When I’m Getting Divorced?
If you are in the process of getting a divorce, you may want to ask your attorney to look at your estate plan. Here are some things to consider:
1. Document Changes
In many cases, beneficiary designation forms, your will, and life insurance policies need to be changed when you get a divorce. Make sure you are familiar with the legal documents you have in place regarding your physical and financial asset distribution when you die. In most cases, beneficiary designations go to your current spouse. If you don’t change this when you get a divorce, your spouse could still be eligible to get your assets when you pass away. Consider changing your beneficiaries to your children or another relative who you trust to follow your wishes when you die.
2. Notify Your Insurance Policies
One of the biggest mistakes people make when getting divorced is failing to notify their insurance policies. You want to ensure that your policy premiums are still paid for after getting a divorce, especially if it’s your ex-spouse who handled the bills. In addition, you want to be sure to change the beneficiaries. In some divorce settlements, ex-spouses are entitled to insurance policies if either party dies in a specific time frame. Talk to your divorce attorney to make sure you get the best deal in your divorce.
3. Consider a Trust
Setting up a trust might be the best option for your family, especially if you plan to take care of your ex-spouse after your passing. A revocable living trust specifies the procedures and conditions for paying alimony and child care if you have young children.
4. Hire an Attorney
Changing your estate plan and understanding what both parties are entitled to after a divorce can get complicated. The best thing to do is hire an attorney to represent you. Not only will they make sure that you get the best settlement, but they will also be able to advise you on the best steps to take when it comes to your estate planning.
Before you enter into any agreements with your ex-spouse, have your attorney look at the paperwork. While you and your spouse might trust a specific estate planner to handle your financial affairs, they can’t be impartial if they’ve worked with both of you in the past. That’s why it’s best to leave these matters to your own divorce attorney, who will prioritize your best interest.
Contact Johnson Law Firm Today for a Free Consultation
If you need a reliable Lancaster divorce lawyer, Johnson Law Firm is here to help. Contact us today to schedule a free consultation with one of our expert attorneys.