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Why divorcing spouses need to update their estate plan

On Behalf of | Oct 28, 2022 | Divorce, Estate Planning |

If you’re getting divorced, it is important to review your estate plan right away. In all likelihood, your ex played a prominent role in the plan, as a beneficiary and perhaps also as your health care proxy.

Change is in order and the time to act is now.

What happens if I forget to revise my estate plan?

Failing to update a will or estate plan after a life-changing event can lead to troublesome issues. For example, you probably designated your ex-spouse as the beneficiary of certain assets such as a bank account, a life insurance policy, or even real estate. If your will isn’t updated when you divorce, your ex-spouse would still be entitled to these assets.

Additionally, you may have named your ex-spouse as your health care proxy, with the power to make medical decisions for you if you become unable to do so. After divorce, this means that if you become incapacitated for any reason, your ex-spouse could make medical decisions on your behalf.

Updating your estate plan after divorce

Your financial wishes and goals have likely changed since the divorce process began. Protecting your property and future has now become your priority. When deciding to reevaluate an estate plan, there are numerous steps that may be called for, including:

  • Revoking an existing will
  • Reviewing beneficiaries for wills, trusts and financial accounts
  • Reviewing guardianship designations
  • Updating powers of attorney
  • Updating health care proxies

Deciding to review and revise your estate plan after filing for divorce is an important step in unwinding your relationship that is often overlooked. The sooner you do it the better, even if it’s the last thing you want to think about. But with the help of a knowledgeable estate planning attorney, you can make the changes you feel are necessary for you to feel confident about your future.