Estate Planning After Marriage: How Marital Estate Rights and Divorce Impact Your Future
Estate planning after marriage is essential for safeguarding your financial future and ensuring that your wishes are honored. Major life events like marriage and divorce can significantly influence your estate plan, often in ways you might not anticipate. Whether you’re newly married or navigating a divorce, understanding how marital estate rights impact your estate plan is crucial to protecting your assets and loved ones.
Life After “I Do”: How Marriage Changes Estate Planning
- Spousal Inheritance Rights
- In many jurisdictions, even if your will omits your spouse, they may still be entitled to a portion of your estate under laws like elective share or community property rules.
- To ensure your wishes are honored, review and revise your will to include your spouse explicitly or make other legal provisions.
- Jointly Owned Assets
- Assets held in joint tenancy with your spouse pass directly to them upon your death, bypassing probate.
- This arrangement is convenient but may need adjustment depending on your broader estate planning goals.
- Beneficiary Designations
- Marriage often means updating beneficiaries for life insurance policies, retirement accounts, and investment portfolios to include your spouse.
- Ensure these align with the rest of your estate plan to avoid conflicts.
Divorce: Rebuilding Your Estate Plan After Marriage
- Revoking Beneficiary Designations
- After divorce, many people forget to update beneficiary designations on retirement accounts, insurance policies, and investment accounts.
- In most states, divorce automatically revokes these designations, but it’s safer to update them manually to ensure your wishes are clear.
- Updating Your Will and Trust
- Review your will to remove or adjust provisions for your ex-spouse. If your ex is a trustee, executor, or guardian in your plan, consider appointing someone else.
- If you have a trust, check whether any terms grant your ex-spouse access to assets and revise as needed.
- Property Settlements and Estate Division
- The division of marital assets during divorce can affect your estate plan. For example, selling the marital home may require changes to your planned inheritance for beneficiaries.
- Consult an estate planning attorney to align your plan with the new financial reality.
- Guardianship of Minor Children
- If you have minor children, divorce might influence decisions about their guardianship in the event of your passing.
- Coordinate plans for your children’s care with your ex-spouse and legally document your wishes.
Steps to Protect Your Estate Plan During Life Changes
- Review Regularly
- Revisit your estate plan after major life events like marriage, divorce, birth of a child, or significant financial changes.
- Make it a habit to review your plan every 3-5 years to keep it current.
- Work with Professionals
- Collaborate with an estate planning attorney and financial advisor who understands the nuances of marital estate rights.
- Their expertise can help you navigate legal requirements and make informed decisions.
- Communicate Clearly
- To avoid confusion or disputes, inform your loved ones about your estate plan.
- Document your wishes clearly and legally bindingly to prevent future complications.
Proactively reviewing and updating your estate plan with professional guidance can ensure your financial future and provide for the people who matter most. Don’t wait—secure your legacy today.
If you’ve recently married or divorced, now is the perfect time to review your estate plan. Don’t let life’s changes catch you off guard— contact Williams Starbuck to schedule a consultation and take control of your legacy today.