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How divorce impacts your estate

On Behalf of | May 17, 2022 | Estate Planning

The financial and emotional effects of divorce can be time-consuming which is why many divorcing couples don’t think about making changes to their estates while ending their marriage. After a significant life event, it is important to review your estate plan and make changes as needed. These tips will help you make the right choices for your estate after a divorce in Connecticut.

What you should know about estate planning and divorce

Most married individuals name their spouse as their beneficiary, personal representative, and power of attorney. After a divorce, ex-spouses likely don’t want each other to have control over their accounts and other assets. This means you’ll have to undergo additional estate planning to accommodate your new life circumstances.

If you don’t have a power of attorney or will at the time of your divorce, you can start estate planning at this time. This will keep your estate from becoming subject to the laws of the state and these laws may not be in keeping with your final wishes.

Changes your estate plan during divorce

Some people think you can not make amendments to your estate plan during a divorce. However, both divorce and separation require that you edit the details of your estate. You can start making changes to your estate before your divorce is final. However, you may want to wait until your divorce is final for accounts that prohibit you from making changes without your spouse’s approval.

Keep in mind that the state will not terminate your spouse’s rights to your inheritance until the marriage is legally over. Acting as quickly as possible will increase the chances that your financial wishes will be honored.