Once the divorce becomes inevitable, there are several issues that you will need to deal with. These include property division, child and spousal support and child custody arrangement.
One of the issues divorcing parties tend to overlook during those turbulent times is updating their estate plans. Like most people, your ex is probably the last person you would want to make life and death decisions on your behalf or inherit your hard-earned wealth.
Here are important updates you need to make on your estate plan once you decide to end your marriage.
Your beneficiary designations
This is probably one of the most important updates you need to make on your estate plan after divorce. If you named your ex as your beneficiary when opening a bank account or retirement account, then they will be legally entitled to these assets when you die. Immediately after the divorce, be sure to contact your bank or insurance company so you can update these accounts.
Your power of attorney
A power of attorney lets you name someone who will make financial and medical decisions on your behalf should you be incapacitated. Most people assign these roles to their spouses. If you named your spouse as your financial or healthcare power of attorney, it is important that you strip them of these roles as soon as your divorce is finalized.
Divorce is an emotional process that comes with its share of life changes. However, amidst the legal hassles that come with divorce, be sure to set aside time to update your estate plan.