Divorce marks the end of one chapter and the beginning of another. While it is a relief to have legal proceedings behind you, it is crucial to focus on the future. Updating your estate plan is a significant step in this journey. Here are essential areas to consider.
Create a new will
After divorce, your estate plan needs a fresh start. Most states, including New Jersey, treat your ex-spouse as if they predeceased you if you name them as a beneficiary in your will. However, not all states follow this rule. To ensure your assets go to the right people, draft a new will. Choose beneficiaries who align with your current wishes.
Revise guardianship for minor children
If you have minor children, revisiting guardianship arrangements is vital. In the event of your death, your ex-spouse would typically assume custody. But what if they pass away first? Designate a guardian to secure your children’s future. This person will be responsible for their support, education, and healthcare. Ensuring a trusted individual takes on this role provides peace of mind.
Update power of attorney and health care directives
During marriage, you might have appointed your spouse as your financial or healthcare agent. Post-divorce, it is wise to assign these roles to someone else. Some states, including New Jersey, automatically disqualify an ex-spouse as an agent, but it is best to be proactive. Draft a new power of attorney and healthcare directive. Choose someone you trust to make financial and medical decisions on your behalf if you are unable to do so.
Review of beneficiary designations
Assets like life insurance policies and retirement accounts bypass your will. They transfer directly to the named beneficiaries. Post-divorce, ensure these designations reflect your current intentions. Update beneficiaries on all accounts, such as:
- Bank accounts
- Investment portfolios
- Retirement plans
- Life insurance policies
Neglecting this step could mean your assets unintentionally benefit your ex-spouse.
Your divorce may also impact on the estate plans of your family members. They might have named your former spouse as a beneficiary or agent in their documents. Encourage them to review and update their estate planning to align with their current wishes.
Divorce is challenging, but updating your estate plan does not have to be. You can handle some changes on your own, but consulting an estate planning attorney for guidance is recommended. If you plan to remarry, consider discussing prenuptial agreements with a family law attorney. Taking these steps ensures your estate plan supports your new life chapter. The family law and estate planning attorneys at Piro, Zinna, Cifelli Paris & Genitempo, LLC can provide you with the guidance you need.
