If you are recently divorced and have received your Judgment of Divorce from the court, you are likely feeling relief for what was likely a lengthy and difficult process.  The last thing you want to do is contact a lawyer to do estate planning and deal with more paper-work and legal issues.  The reality, however, is that divorce is a major life change that has shifted ownership of your assets and creating a new estate plan is necessary to protect your assets in the event of your death. 

Below are the key reasons why updating your estate plan is essential after you are divorced:

1. A new Will should be created immediately after you are divorced

It is important that you create a new Will as soon as possible after your divorce is finalized.  Although your divorce will most likely automatically remove your spouse as a beneficiary of your assets, it likely will not distribute your assets the way you would like them to be distributed in the event of your death.  Additionally, if you have named your ex-spouse as an executor, this may have to be changed.  A new Will can ensure that your assets are distributed in accordance with your current wishes and intentions.

2.  Beneficiary Designations

Equally important and what goes hand-in-hand with the creation of a new Will is a thorough review of your beneficiary designations on your life insurance policies, retirement accounts, and bank and brokerage accounts.  You will have likely named your ex-spouse on each of these accounts.  It is now time to review all beneficiary designations vis-à-vis your global estate plan.  You may have acquired new/additional assets as part of the divorce settlement.  If you have young children, you will want to make sure that your assets pass to them in a way that protects and insures their care. 

3.  Heath Care Directives

Now that you are divorced, you should create health care directives including a health care proxy that designates someone to make medical decisions for you if you are unable to do so.  Who do you wish to designate?  You should execute a new health care proxy appointing a new agent as your old health care proxy likely names your ex-spouse.

4. Guardianship of Minor Children

Although your ex-spouse will most likely be the custodian/guardian of your minor children if you die, it is important to nominate an alternate in the unlikely event you both you and your ex-spouse die.  This creates a safe-guard for your children going forward and will give you peace of mind that they will be cared for by a person you choose – not the court. 

The bottom line is that there are a myriad of financial issues and protections that need to be put in place after you are divorced to solidify the passing of your assets and protection of your family in the event of your death. 

Contact Lazar Schwartz & Jones, LLP to begin your estate plan if you have been recently divorced.

Sherry A. Bishko, Esq.