How Does Divorce Affect Your Estate Plan?

Divorce will have a significant impact on all aspects of your life, but it may also impact certain aspects of your death. The important aspect of estate planning is often overlooked when people get a divorce. There are certain elements of your plan that can be affected after you formally end your marriage while others are not always impacted. Below, our Utah estate planning lawyer explains in greater detail.

How Will Divorce Impact Your Estate Plan?

After your divorce is finalized, the law largely treats your spouse as though they passed away before you. This means if they are named in important documents such as your will, trust, or power of attorney, these sections will be automatically revoked. Your spouse will not receive any property you had left for them in these documents.

However, not all aspects of your estate plan will treat your spouse as predeceased. If you named beneficiaries on payable-on-death bank accounts, life insurance policies, or retirement and investment accounts, these typically remain effective after your divorce is final. As such, if you pass away and have not updated these designations, your spouse will still receive the asset.

How to Update Your Estate Plan Post-Divorce

If you pass away and you are still officially married to your spouse, they will still have the right to the property outlined in your estate plan. This is true even if you have started the divorce process. Until your marriage has been formally dissolved by a judge and you have the final divorce decree, your spouse can still inherit your property. As stated above, your spouse will also retain the right to certain property if you have designated them as a beneficiary and so, these accounts must also be updated, even after divorce.

Legally, you cannot completely disinherit your spouse unless they waive their rights to your property. However, you can ensure they do not receive any portion of your estate by updating your plan post-divorce. The following tips can help:

• Review all documents, including your will, trusts, healthcare directives, powers of attorney, and beneficiary designations to identify any mentions of your former spouse.
• Contact an estate planning lawyer who can ensure these outdated provisions are properly revoked and help you designate new agents, trustees, or beneficiaries.
• Notify all insurance companies, financial institutions, and other parties to avoid disputes or confusion. You may also have to notify certain institutions so they can formally change certain designations.
• Consider any new goals you may have post-divorce due to the change in family dynamics and your financial situation.

Our Estate Planning Lawyer in Utah Can Help You Make the Necessary Changes

Estate planning and divorce intersect in complicated ways. At AGS Law, our Utah estate planning lawyer can review your plan with you, help you identify necessary changes, and ensure that you and your preferred beneficiaries are protected. Call us today at 801-477-6144 or fill out our online form to schedule a consultation with our experienced attorney and to learn more about how we can help.

Source:

le.utah.gov/xcode/Title75/Chapter2/C75-2-P5_1800010118000101.pdf