The Impact of Marriage and Divorce on Estate Planning

Estate planning is an essential aspect of managing your personal affairs, and significant life changes such as marriage or divorce can have profound effects on your plans. 

When you marry, your spouse may automatically have rights to a portion of your estate. Depending on your location, laws such as community property or equitable distribution can significantly influence how your assets are managed and distributed upon death or divorce.

After marriage, it's important to update your estate plan to reflect your current marital status. This may include adding your spouse as a beneficiary in your will, updating your healthcare directives, and revising your power of attorney. You may want to establish joint ownership of property or set up new trusts so that your spouse is adequately provided for.

Divorce and Estate Planning

Divorce can drastically alter the provisions of your estate plan. Areas that may need revision include your will, trusts, beneficiary designations on life insurance policies, and retirement accounts. It’s important to remove your ex-spouse from any roles that grant them decision-making power over your health or finances.

Protecting Your Assets

To protect your assets and guarantee they are passed on according to your wishes, you may need to create new trusts or modify existing ones. This can help prevent your ex-spouse from gaining control over important assets, especially if minor children are involved.

Updating Beneficiaries

After a divorce, update all documents where your ex-spouse is listed as a beneficiary. Failure to do so could result in your ex-spouse inheriting assets despite your intentions to the contrary.

Whether you are entering into a marriage or undergoing a divorce, consulting with an estate planning attorney is essential. A professional can help you with the complex implications of these changes and adjust your estate plan accordingly. This guarantees that your estate plan is always aligned with your current life situation and legal requirements.

Marriage and divorce are significant life events that necessitate changes to your estate plan. By proactively managing these changes, you can protect your assets and make sure that your estate is handled according to your wishes. Remember, an updated estate plan is an effective estate plan.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.