Often life can seem like a series of checkboxes to mark off as completed. When you got married and created an estate plan, that was a task you could mark off as accomplished.
In the wake of a divorce, there is a new series of checkboxes to complete. After your divorce is final, a critical item to take care of is revising your estate plan.
Here’s why it is essential to update your estate plan after a divorce.
Adjusting your will
You may think there is no need to rush to remove your ex from your will. In some states, your divorce does not change your will, and your assets could still go to your spouse.
However, Florida has a safeguard for people who do not change their will immediately after a divorce is final. Assets that would have gone to your former spouse when you die could be treated as though your spouse is also dead.
In addition to removing your former spouse from your will, there may be significant assets that changed hands during the divorce. You should review your financial position for possible adjustments, and account for any gains or losses in your financial assets.
Beneficiaries outside your will
Your will is not the only piece of your estate plan that needs to be updated. Often, assets like life insurance policies and retirement accounts will ask you to name a specific beneficiary.
Depending on the asset, if you do not change the account beneficiary designations, your ex could receive assets you did not intend. It is important to update this information as soon as possible when a divorce is final.