Critical Points to Know Regarding Estate Planning during Divorce

Published on
January 30, 2024
Written by
Angel Murphy, Esq
Category
Estate Planning

Divorce is undoubtedly one of the most pivotal events a person can experience. When a bond as permanent as marriage is broken, the emotional, mental, and financial consequences can be quite severe. It's critical to recognize that divorce encompasses numerous dimensions, including significant financial implications. Although doing so may not be easy, at some point you’ll need to turn your focus to revising your estate plan. We'll cover the key things to consider when updating your estate plan after a divorce.

Alter / Update Your Estate Planning Documents

Estate planning aims to increase your estate's value and ensure it is inherited according to your wishes. There are various strategies and methods which estate planning attorneys implement in order to further this basic goal. Create documents to make sure your assets are distributed according to your wishes after you die. These documents include the following:

 

✅ Wills

✅ Trusts

✅ Life insurance policies

✅ Financial accounts

✅ Power of attorney

‍

Eventually, you'll need to update these documents so they accurately represent your wishes after the divorce. If you don't want your ex-spouse to be the beneficiary of your will, trusts, or life insurance policies, you need to update these documents to match your current wishes. In many cases, delegating this task to a skilled estate planning attorney may be desirable due to the complexity involved.

During a divorce, the most important step in estate planning is to update all related documents. These documents will probably be greatly affected by the divorce, unlike other estate planning strategies such as increasing wealth or reducing taxes, which will likely remain unchanged.

Adjust for the Financial Consequences of Divorce

In addition to updating your documents, those going through a divorce need to adjust to the financial ramifications of divorce. The financial ramifications of divorce can have an impact on a person’s overall financial condition and, consequently, on their estate. In many cases, divorcees have to contend with hefty legal fees, child support payments, and spousal maintenance payments. Those experiencing a divorce need to take full account of how they will be impacted financially in these ways and then make the necessary adjustments. Depending on the circumstances, adjusting properly may mean obtaining an additional source of income, taking steps to shield certain assets from attachment, and so forth. In the end, you want to ensure that the financial implications of divorce don’t have a negative impact on your long-term estate planning. Divorce can be very expensive, and so planning ahead properly for this reality is immensely important.

Contact the Murphy Law Firm for More Information

If you would like additional information pertaining to nuisance law, or another matter, reach out to one of the leading real estate attorneys at the Murphy Law Firm today by calling 240-219-8901.

Angel Murphy

Personable. Passionate. Persistent.

Divorce, Estate Planning, Finances, divorce, estate planning, financial implications, updating documents, wills, trusts, life insurance, power of attorney, assets, beneficiaries, legal fees, child support, spousal maintenance, financial adjustments, income sources, asset protection, Murphy Law Firm

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