Divorce can feel overwhelming, but once it’s over, you must revisit your estate plan. Divorce affects more than just your personal life—it also changes how you distribute your assets and who will make decisions for you. Review your will, power of attorney, and beneficiary designations to reflect your new situation.
Review your will and trust
After a divorce, check your will or trust. Remove your ex-spouse from any beneficiary designations. If you neglect to update these documents, your ex could inherit assets that you want to go to someone else. Also, review any trusts. Ensure your ex is not listed as a trustee or beneficiary unless you want them in those roles.
Update your power of attorney and healthcare directive
In a divorce, you might not want your ex to make decisions for you if you become ill or incapacitated. Update your durable power of attorney and healthcare directive so that someone else will manage your affairs and make medical decisions for you. This ensures someone you trust has the authority to take care of your finances and health when you can’t make decisions yourself.
Address beneficiary designations
Update the beneficiary designations on your life insurance policies, retirement accounts, and other financial assets. Many people forget to make these changes after a divorce, leaving their ex-spouse as the default beneficiary. Ensure the people you want to receive your assets—such as children or other family members—are listed as beneficiaries.
Update guardianship designations
If you have minor children, you may have named your ex-spouse as the guardian in your estate plan. After divorce, update this designation. You may want to choose a new person to care for your children if something happens to you.
Reviewing your estate plan after a divorce ensures your wishes are honored. It helps guarantee your assets will distribute according to your new life circumstances. Estate planning is an ongoing task. By regularly reviewing your plan, you can have peace of mind knowing that everything is in order.