After a divorce is finalized, many people focus on dividing assets, adjusting finances, and moving forward with their new lives. However, one important step that is often overlooked is reviewing and updating estate planning documents.
A divorce can impact decisions about who controls your assets, who makes important decisions on your behalf, and who receives benefits after your death. Failing to update these documents may leave outdated instructions in place that no longer reflect your wishes.
Reviewing Your Will After Divorce
A will determines how your property should be distributed after your death and may name important individuals, such as:
- Beneficiaries who receive assets
- An executor who manages the estate
- A guardian for minor children
After a divorce, many people choose to update these designations to reflect their new circumstances. This may include removing an ex-spouse as a beneficiary or selecting a different person to handle estate responsibilities.
It is also important to review provisions involving children, especially if your family circumstances have changed.
How Divorce Can Affect Trusts
Trusts are often created to manage assets, provide for children, or accomplish specific financial goals. After a divorce, an existing trust may no longer reflect your current intentions.
Depending on the type of trust and the terms involved, you may need to review:
- Who controls the trust assets
- Who benefits from the trust
- Whether your former spouse has any remaining role
- How assets should be managed for children or other beneficiaries
Because trusts can involve more complex arrangements, reviewing them after a divorce can help ensure they continue to accomplish your goals.
Updating Beneficiary Designations After Divorce
Some assets pass directly to named beneficiaries rather than through a will. These designations are commonly found on:
- Retirement accounts
- Life insurance policies
- Investment accounts
- Certain financial accounts
Many people are surprised to learn that beneficiary designations may control who receives these assets, regardless of what a will says.
After a divorce, it is important to review beneficiary forms and determine whether changes are needed.
Reviewing Power of Attorney and Healthcare Documents
Divorce may also affect who you want to make decisions on your behalf if you become unable to do so.
Important documents to review may include:
- Financial power of attorney
- Healthcare power of attorney
- Advance directives
Updating these documents can help ensure that trusted individuals—not former spouses—are responsible for important decisions if circumstances require it.
Final Thoughts
Divorce changes many aspects of your life, and your estate planning documents should reflect those changes. Reviewing your will, trust, beneficiary designations, and decision-making documents after divorce can help ensure your assets are distributed according to your current wishes.
Taking time to update these documents can provide greater control over your future and help avoid unnecessary complications for your loved ones.
If you have questions about your divorce process or are unsure which approach may apply to your situation, it is important to understand your options early.
The Law Offices of Patrick Markey, P.C., are located at 180 Stetson Avenue, Suite 3500 in Chicago, Illinois. You may call us at 312-223-1764 to discuss your situation.
I help clients minimize the destruction of divorce whether it be through the collaborative law model, the court process or mediation. My focus is on complex family law cases and representing professionals and their spouses who value a proactive solution orientated approach to their divorce. Our policy is to provide prompt responses and regular status updates to clients. Keeping the client informed about their cases is the highest priority. We as a firm are accessible when needed. Clients want a speedy resolution to their divorce or family law matter without sacrificing the best possible outcome. I am a strong advocate of the Collaborative Law and mediation dispute resolution methods for their ability to custom-craft solutions, minimize conflict and usually reduce the time of a case. Not only are we experts on family law, but we understand the impact of divorce on children and we help client’s develop co-parenting relationships. Clients deserve to be treated with kindness and empathy during this difficult time. We as a firm represent clients in a professional, ethical manner. The firm uses the latest technology to save time and make the client’s experience easier.
Recognition:
*Selected as an Illinois Super Lawyer by Super Lawyers Magazine for 2024. This distinction is limited to the top 5% of lawyers in each practice area. In 2015, selected as a “Rising Star” which is only granted to 2.5% of lawyers. Super Lawyers has a patented multi-phase process that includes independent research, peer nominations and peer evaluations.
* Chicago Bar Association Milton H. Grey Award for Outstanding Project Leadership (2012).
Involvement
*Collaborative Law Institute of Illinois (CLII) Executive Board Member
*Center for Conflict Resolution (CCR) Volunteer Mediator
*Chicago Bar Association Judicial Evaluation Committee