Many studies have shown that while the winter holiday season should be the happiest time of year, the divorce rate actually spikes in the months immediately following.
Here are some of the reasons why this is the case, as well as the steps you can take to prevent fiduciary disputes from arising in your divorce.
Why do more people get divorced after the holidays?
Many couples who have been on the fritz for a while will do their best to hold onto hope that the holiday season will reignite their spark for their partner. With all of the magic in the air and the opportunity to be sentimental, spouses often wait to see how they feel in the new year before deciding to file for divorce.
Another reason is that either one or both of the spouses fear spoiling the holiday experience for their children, friends, and family. As this is a time of frequent family gatherings, vacations, and “quality time” together, many couples opt to wait until January-March to announce their decision to part ways.
Lastly, we all know that the holidays can bring on enough stress and heightened emotion.. In this environment, it’s easy for couples to find themselves experiencing the “last straw.” Hurtful words and actions can cut especially deep during this time, so it is not uncommon for one or both partners to decide to throw in the towel in the new year.
How can I prevent a fiduciary dispute from arising during my divorce?
If you are experiencing any of the situations mentioned above and you have made the decision to file for divorce next year, here are just a few things you should do immediately to ensure that your estate planning documents are properly updated and your assets are protected.
- Update your trustee designations. If you have the option to replace your spouse as trustee of your trust, do so. It may have made sense to name your spouse as the trustee when you were married because of shared children and finances, but after a divorce, you are unlikely to want your ex-spouse to continue controlling investment and distribution decisions for your beneficiaries.
- Update your beneficiaries. If possible, change beneficiary designations on your investments, insurance policies, etc. Your spouse’s consent will be required to change the beneficiary designation of some retirement accounts. Failing to change these designations after a divorce could put your former spouse as the recipient of assets you intended to go to children, future/new spouse, and other loved ones.
- Update your Powers of Attorney. The agent listed in any powers of attorney could have control over your bank accounts, property, beneficiary designations, government benefits, and anything else not protected in a trust. Unless you trust your former spouse to exercise control of your financial and healthcare decisions should you become incapacitated, you should update your powers of attorney as soon as possible.
If you have already found yourself in a will, trust, estate, or business dispute arising from a divorce, contact us today for a consultation.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes representing individuals, executors, trustees, investors, shareholders, and corporate fiduciaries in complex fiduciary disputes involving wills, estates, trusts, guardianships, and businesses.
