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Documents to Update After Divorce

Posted by Hanscom Federal Credit Union on Feb 26, 2016 7:30:00 AM

Divorce_and_Documents.jpgIf you died tomorrow, who would inherit your estate? Who would get the proceeds from your retirement plan and/or life insurance policy? If you were incapacitated, who would have the legal right to make medical and financial decisions for you? If you named your ex-spouse, you may need to make a call to your lawyer and insurance company.

It is common when people are married to name their spouse as the executor of their estate and beneficiary in their will and life insurance policy, as well as give him or her power of attorney. Unfortunately, it is also common for people to forget to update important legal/financial documents when they get divorced.

If you want to make changes, don’t delay – you never know when something could happen. (However, keep in mind that if you are still going through divorce proceedings, you may not be able to make changes until it is finalized.)

If you have minor children and want to make them the beneficiaries, you will have to name a guardian of the estate, since minors generally cannot directly control assets. It does not have to be your ex-spouse, even he or she gets custody of the children if you die – you can name another person or even an institution.

Your lawyer can help you figure out what would work best in your situation. 

 

Read more on making a Financial Fresh Start

You might also be interested in:

10 Tips to Get Your Finances in Order Before a Divorce

Debt and Divorce: The Basics

Building a Budget After Divorce

Building Credit After Divorce

Repaying Debt After Divorce

The Biggest Financial Concern Divorcing Couples Have

 

Topics: Divorce

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