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Divorce means you should update your estate plan

On Behalf of | Aug 9, 2022 | Family Law

If you already have an estate plan, many financial experts recommend updating this plan on an annual basis. Once a year, you just go over all the paperwork to make sure that it still matches up with your life and your expectations.

However, they’re also quick to note that most people don’t do this. But even if you decide not to do an annual update, it’s still important to consider major life events that may mean it’s time to alter your plan. One of those life events is getting a divorce.

You need to remove your ex

First of all, you want to remove your ex from your estate plan. They were likely listed and may have been the person to get the majority of your assets. You just want to make sure that it’s very clear in your plan that these assets are to go to someone else. Even if you believe that they automatically wouldn’t go to your ex after a divorce, you still want to specify who is supposed to obtain those assets.

Your financial situation is going to change

Beyond that, divorce also just means dividing assets with your ex. This can dramatically change your financial situation. A lot of the assets that were formally mentioned in your estate plan may go to your ex and no longer be under your control. You may also take full control over some assets that were previously shared. No matter how this plays out, you can imagine how important it is to make sure your estate plan reflects what you actually own.

As you create your plan and update it, just make sure you know what steps to take.