Divorce typically forces people through a series of challenging transitions. They have to have difficult conversations with their spouses and children. They often need to take stock of their finances and make choices about the future.
When the courts finalize a divorce and dissolve the marital relationship, many spouses are eager to move on with their lives as quickly as possible. Spending more time addressing legal matters might be the furthest thing from their minds. However, the end of a marriage is usually the time when additional legal protections can become necessary.
Revising an existing estate plan is often a critical step toward becoming truly independent and ensuring adequate legal protection after a divorce.
Divorced people may need more support
An individual’s marital status influences everything from the distribution of property after their death to the type of support that they have in an emergency scenario. People who may have previously relied on their spouses for assistance and advocacy in an emergency scenario may need to draft completely new documents.
They may need an advance directive explaining their personal medical preferences and medical powers of attorney naming someone they trust to act as their agent. They may also require financial powers of attorney in case they ever experience protracted incapacitation that prevents them from paying their bills on time.
Divorced adults do not have the same protection and support as married individuals in a personal emergency. They need to plan in advance in case something unexpected happens.
Achieving a specific legacy may require more effort
Obviously, after divorce, the person who recently divorced likely needs to remove their spouse from their will and other estate planning documents. They do not want their property to become the property of a former spouse if they die. They may also need to file new beneficiary designations with financial institutions and life insurance companies.
They may also need to consider strategies to preserve inherited property for their children. Unless the divorce occurs later in life, there could be reason to worry about children not receiving the inheritance intended for them.
Even if a divorced parent removes their spouse as a beneficiary, their former spouse could have control over their property if they die while their children are still minors. Those hoping to preserve resources for their children in a tragic situation may need to establish a trust.
Divorce is one of several situations that can inspire people to create estate plans and may make it necessary to significantly revise existing documents. Ensuring that personal paperwork reflects current circumstances can provide people with protection and peace of mind regardless of how their circumstances change.