Divorce is an emotionally and financially transformative experience, to put it nicely. Amid the chaos of dividing assets, determining child custody, and redefining your future, estate planning is often overlooked and set on the back burner. As overwhelming as it seems, it is critical to protect yourself, your children, and your assets during and after divorce.

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Why Estate Planning Matters During Divorce

While your divorce is pending, your soon-to-be ex-spouse may still have legal rights to your assets and decision-making authority over your healthcare or finances. Most people assume that once divorce papers are filed, their ex is automatically removed from their estate plan—but that’s not always the case. Here’s why estate planning during divorce is essential:

1. Updating Beneficiaries: Many people name their spouse as a beneficiary on life insurance policies, retirement accounts, and other assets. If you pass away before updating these, your ex could still inherit them.
2. Modifying Powers of Attorney: If your spouse has been designated as your financial or healthcare power of attorney, they may retain decision-making power over critical aspects of your life.
3. Protecting Your Children’s Inheritance: If you have children, ensuring they receive your assets in a way you intend is crucial. Without proper planning, your ex may end up controlling their inheritance.

Immediate Steps to Take During Divorce

• Review Your Will and Trusts: If you have a will, update it to reflect your new intentions. If you have a trust, ensure the successor trustee is someone you trust.
• Change Your Healthcare Proxy: If your ex-spouse is listed as the person making medical decisions for you, select someone else.
• Revise Your Power of Attorney: Ensure a trusted friend or family member, not your soon-to-be ex, has financial control in case of emergency.
• Adjust Beneficiaries: Update beneficiaries on your life insurance, retirement accounts, and bank accounts to prevent your ex from inheriting assets unintentionally.

Estate Planning After Divorce

Once the divorce is finalized, your estate plan must reflect your new life. Here are the next steps:

1. Create a New Will and Trust: Most states automatically revoke an ex-spouse from a will after divorce, but it’s still wise to draft a new one to ensure clarity.
2. Update Guardianship Designations: If you have minor children, review who will be their guardian if something happens to you.
3. Ensure Asset Protection for Children: If you don’t want your ex-spouse controlling your children’s inheritance, consider creating a trust and appointing a trustee to manage their funds.
4. Reassess Your Power of Attorney and Healthcare Directive: Make sure someone you trust can make decisions for you.
5. Review and Update Property Titles: If you owned property jointly, confirm that ownership is correctly transferred and your estate documents reflect any new arrangements.
6. Consider Tax Implications: Estate taxes, capital gains taxes, and other financial elements may change after divorce. Consult an estate attorney or financial planner to optimize your estate plan.

Seeking Professional Help

Navigating estate planning during and after a divorce can be complex, but it’s crucial to protect yourself and your loved ones. An experienced estate planning attorney can help ensure your assets are distributed according to your wishes and that your children’s future is safeguarded.

Divorce is a time of transition, but it’s also an opportunity to empower yourself and to take control of your future (this is the best feeling!) Updating your estate plan ensures that your assets, health decisions, and family’s well-being align with your new life path. Taking these proactive steps now can provide peace of mind and financial security as you continue to create your new life.