Maybe you did not see yourself divorcing so close to retiring, but here you are. How does dissolving your marriage affect your estate plans?
AARP explores gray divorce and how to adjust your estate plans while ending a marriage. Ensure you protect your estate and your assets while navigating the next chapter of your life.
Spouse benefits
Your current estate planning document may list your soon-to-be former spouse as your will beneficiary, insurance beneficiary or power of attorney. Depending on your situation, it could make more sense to change documents before your divorce, because some changes could become prohibited after you file for divorce.
Property settlement agreement
Your current estate plans could come into play for a property settlement agreement. Some ex-spouses have will provisions or trusts that help each other even after divorce. You may not mind such an arrangement if you get along well with your current partner. No matter how you feel about your soon-to-be-ex, consider letting your legal representative look over all documents related to your estate. In their current form, they could limit your options regarding your property in a divorce.
New wills
Set a reminder on your phone or a calendar to draft a new will after finalizing your divorce. Usually, an ex-spouse cannot serve as a person’s estate administrator or trustee. Ensure your estate planning documents reflect your most-current desires and your divorce agreement.
While dissolving your marriage, it makes sense to re-evaluate your estate. A careful review and a few adjustments could set you up for success in your golden years and beyond.