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Divorce is a significant life change that affects nearly every part of your future. If you have an estate plan already in place, it can guide you through the changes you’ll need to make post-divorce. If you’ve already made a plan for which assets go where upon your death, that preparation might help you as you and your spouse separate your marital assets. Additionally, if your estate planning documents are up-to-date, you’ll have a current list of all your assets, which should make it easier to discuss and divide them in the divorce process.
It’s easy to overlook during the stress of separation, but as soon as your divorce is final, you should update your current estate plan. Taking time to update your documents helps make sure your property and finances go where you want them to, and that your loved ones are cared for as you move forward into this new chapter of life.
Review Your Will, Executors, and Trusts
After a divorce, your estate plan may still include your former spouse in key roles, such as executor, trustee, or beneficiary. Replace your ex-spouse with someone you trust—such as a sibling, adult child, or close friend—and review any guardianship designations for your children to ensure they still fit your current situation.
While New Jersey law (N.J.S.A. 3B:3-14) can automatically revoke some spousal provisions, not all are covered. If your ex still has authority over property or trust management, update those sections right away to avoid confusion or disputes later.
Review your revocable living trust carefully and retitle any necessary assets. For irrevocable trusts, an experienced estate planning attorney can help determine whether modifications or a new structure better meet your needs.
Revisit Beneficiary Designations
Many people forget that beneficiary designations on life insurance, retirement accounts, and payable-on-death bank accounts override instructions in a will. If your ex-spouse remains listed, they may still be entitled to receive those assets, even after your divorce.
Contact your financial institutions to review and update all beneficiary forms. If you have minor children, consider naming a trust for their benefit rather than leaving funds directly to them. This provides better control over how and when the money is disbursed.
Adjust Powers of Attorney and Healthcare Directives
During your marriage, you may have given your spouse the authority to make medical or financial decisions if you were ever unable to do so. After a divorce, most people want to make a change. Make sure those documents reflect your current life and the people you trust now.
Choose someone reliable who understands your wishes and will act in your best interest. Update your durable power of attorney, healthcare proxy, and living will. Leaving old directives in place can cause significant issues during an emergency.
Reassess Property Titles and Deeds
Joint ownership of property, such as your home or investment accounts, typically remains in place after separation or divorce unless it is formally changed. Once your divorce is finalized, work with your attorney to retitle property according to court orders and remove your ex-spouse’s name where appropriate.
If you plan to keep certain assets in your name only, make sure those changes align with your estate plan. Coordinating these updates avoids conflicting instructions between your deeds, accounts, and estate documents.
Protect Your Children’s Financial Future
Divorce can create uncertainty about how your children’s needs will be met if something happens to you. Consider creating or updating a trust to manage their inheritance. This allows you to appoint a responsible trustee—someone other than your ex—to oversee distributions.
If you pay or receive child support, note how those funds affect your estate plan. For example, if you’re the payor and you pass away before support obligations end, life insurance can help cover those costs. Discuss these details with your attorney so your plan accounts for your children’s long-term security.
Start Fresh with a Clear Plan
Updating your estate plan after a divorce might feel like just another thing to check off your list, but it’s an important one. Your plan should match your life now—not the one you had before. Taking a little time to review your documents helps make sure your assets go where you want them to and that your wishes are clear.
If you need help updating your will, trusts, or beneficiary designations after divorce, reach out to Merlino & Gonzalez. We help New Jersey residents protect what matters most to them.