Preparing For Divorce

It is important to remember that a person might to consider updating their estate planning documents when a major life event occurs. Divorce is one of these cases. There are quite a few provisions and aspects on ones estate planning documents that involve the opposite spouse. For example, look at the following situations to get a better picture how divorce affects the estate planning documents:

• A person might want to update their documents that deal with incapacity. The documents could include the health care proxy and the power of attorney. After getting a divorce, a person probably would not want their former spouse making medical or financial decisions on their behalf. 
• A person might not to give their former spouse a large inheritance; therefore, a person might want to change who their primary beneficiary is under his or her will. 
• A person might want to create an irrevocable life insurance trust if the court orders one of the spouses to maintain life insurance for the benefit of the couple’s children. The trust would ensure that the life insurance is properly conveyed after the divorce.

See Raymond German, Divorces and Your Estate Plan, Target Law, July 5, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.