Importance of Updating Your Estate Plan After Divorce
Although it is never a bad time to re-examine your estate plan, certain life moments make this process particularly urgent. A prime example is a divorce, and the end of your marriage may require you to adjust various aspects of your estate plan. Why is this the case? Which critical documents should you adjust after your divorce?
These are questions you may want to discuss alongside RM Law Group, LLP. Our established Irvine divorce law firm has helped numerous families through challenging times – including all family law matters. Our experienced attorneys can assist recently divorced individuals to get their lives back on track. Co-founding attorneys Jason Martinez and Michael Recinos exclusively practice family law, giving them unique insights into the financial impacts of divorce. For estate planning needs we often recommend our clients to work with Modern Wealth Law, a local Orange County law firm with expertise in estate planning.
Updating Your Will After Divorce
In California, a divorce automatically revokes your former spouse’s right to inherit anything according to your Last Will and Testament. You might assume that you do not need to edit your Will because of this automatic process – but this is not entirely correct. You will likely need to add new beneficiaries to your Will after your divorce.
Even if your spouse cannot inherit anything from your estate, your Will becomes ineffective if you do not replace them with other beneficiaries. This is particularly problematic if your spouse was the only beneficiary listed in your Will. Consider adding new beneficiaries, such as children, parents, or siblings. If you fail to do this, the probate court may arbitrarily distribute your assets in a way that goes against your wishes.
Updating Trusts After Divorce
Your spouse will remain as a beneficiary to your trust unless you manually remove them. This could prove challenging if you have an irrevocable trust since these trusts are meant to be permanent once established. That being said, the California Bar Journal states that “amendment, modification, or termination” of irrevocable trusts is possible “under the proper circumstances and using the proper procedures.” A revocable trust is easier to modify, and removing a former spouse should be more straightforward.
Updating Beneficiaries on Financial Accounts
Updating beneficiaries on financial accounts after a divorce is essential to ensure that your financial and legal intentions are accurately reflected. If you do not update these designations on accounts such as life insurance policies, retirement accounts, or payable-on-death bank accounts, your ex-spouse may still receive these assets, potentially contradicting your current wishes. Divorce often changes personal and family dynamics, making it important to align beneficiary designations with new estate planning goals, such as naming children, a new partner, or another trusted individual.
Moreover, failing to update these designations can lead to legal disputes, delays in asset distribution, and costly court battles, particularly if your intentions are unclear or contested. In some cases, divorce settlements or court orders may also require specific beneficiaries to be named, such as for spousal or child support obligations, making timely updates crucial for legal compliance. By ensuring that beneficiary designations are current, you can help your loved ones avoid complications during the probate process, allowing them to access funds or benefits without unnecessary delays.
Updating beneficiaries also reflects changes in your life circumstances, such as remarriage or additional children, ensuring that your estate plan is comprehensive and up to date. This process involves reviewing all financial accounts, consulting with financial or legal professionals to align changes with your overall plan, submitting updated forms to account providers, and retaining proof for your records. Taking these steps protects your assets and ensures they are distributed according to your current wishes.
Updating Powers of Attorney After Divorce
As with Wills, Powers of Attorney automatically change after divorce – and your ex will no longer have the ability to make healthcare or financial decisions on your behalf. While you do not need to worry about a bitter ex deciding whether you should be removed from life support, it is still necessary to adjust these documents after divorce. Replace your former spouse with another agent who you trust to make important decisions on your behalf if you ever become incapacitated.
Contact an Established Attorney Today
If you are ready to begin adjusting your estate plan after a divorce, consider working alongside experienced property division attorneys at RM Law Group, LLP and our colleagues at Modern Wealth Law. While divorce can be a daunting prospect, adjusting your estate plan may provide considerable peace of mind. Reach out today, and call 866-706-3160 to get started with our property division lawyers in Cerritos.
Jason Martinez is a co-founding partner of RM Law Group, LLP. His practice focuses exclusively on California Family Law and community property division, including litigation and settlement of complex and high-conflict divorce and child custody proceedings. Jason understands that divorce and family law issues have long-term effects on all family members, especially the children.
