When you are in the middle of working through the process to make sure your divorce is finalized properly, it’s easy to become overwhelmed. Between the emotional turmoil of ending your marriage, navigating new living plans for your children, coordinating the division of assets, filling out paperwork, hiring divorce attorneys, and everything in between, it’s a lot to keep track of.
However, a lot of people forget one of the most important parts of a comprehensive divorce process checklist: updating their estate plan.
There are 4 estate planning devices you should consider updating before your divorce is finalized.
4 Reasons to Update Your Estate Plan Before Your Divorce Is Finalized
1.) Power of Attorney
Many spouses give each other power of attorney during their marriage. These documents may give your spouse access to all your accounts and assets, regardless of whether you are competent to handle those assets yourself. You will likely want to revoke any power of attorney you gave to your spouse as soon as you are able to do so.
2.) Beneficiary Designations
Some beneficiary designations can be changed during the divorce process, while others cannot. Most states do not allow beneficiary designations on employee benefits such as life insurance, a 401k, and pensions to be changed until after the divorce is finalized. Your lawyer can advise you regarding changes you can make while the divorce is pending.
3.) Update Your Will Before The Divorce is Finalized
If you signed a will while you were married, you likely named your spouse as executor and beneficiary of significant assets. In Georgia, a pending, unfinalized divorce will not invalidate any provision of designation in your will. If you want to eliminate provisions you made for your spouse in your will, it is important that you revoke your will and execute a new one as soon as possible.
4.) Amend Your Trust
If you have a trust that names your spouse as trustee or beneficiary, you will likely want to amend the trust. As with your will, if you pass away before amending your trust, the fact that you and your spouse were in the process of getting divorced will not invalidate trust provisions that benefit your spouse.
Depending on the type of trust you signed and the laws of your state, you may need to negotiate changes with your spouse as part of the divorce process. Your divorce attorney and your estate planning attorney can work together to ensure that the changes you want to make to your trust can be implemented as soon as possible.
Are You Looking to Update Your Estate Plan Before Your Divorce is Finalized?
If you are in a dispute regarding any of your estate planning documents or designations during the divorce process, our attorneys are here to help.
For more information, call our law office at 404-892-9797 or by filling out our contact form here.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
