Divorce later in life, often called a “gray divorce,” brings unique challenges. You must address legal and financial issues quickly to ensure your future remains secure. Here is what to focus on post-divorce.
Revise your estate plan
Begin by updating your estate plan. Change the beneficiary immediately if you still list your ex-spouse. Many state laws treat an ex-spouse as deceased for inheritance purposes, but not all do. Create a new will to reflect your current wishes. This step ensures your assets go to the right people.
Next, update guardianship arrangements for any minor children. Choose someone you trust to care for them in case both parents become unavailable. This decision impacts their future well-being, so consider it carefully.
Change power of attorney and health care agents
You may have named your ex-spouse as your power of attorney or health care agent. This means they could make financial or medical decisions for you if you become incapacitated. Change these documents to appoint someone else. You do not want your ex-spouse controlling your finances or medical care. This step protects your interests and ensures decisions align with your wishes.
Update beneficiary designations
Accounts like life insurance policies and retirement funds transfer through beneficiary designations, not your will. Check all your financial accounts, including bank accounts, pensions, IRAs, and annuities. Update the beneficiaries to reflect your current preferences. This prevents your ex-spouse from inheriting these assets.
Do not forget to retitle any real estate you own. Remove your former spouse’s name from property titles if you have not done so already. This change solidifies your ownership and prevents future disputes.
Encourage family members to review their estate plans
Your family members might have named your ex-spouse in their estate plans. They might have named them as a fiduciary or beneficiary. Encourage them to review and update their documents. This ensures their assets align with their intentions and prevents your ex-spouse from gaining control or benefits.
Updating your estate plan might initially seem overwhelming, yet it is more straightforward than anticipated. Seek legal help of an estate planning attorney to guide you through the process and ensure legal compliance.
If you contemplate remarriage, consider drafting a prenuptial agreement to protect your assets and clarify your intentions for any future relationships. By taking these steps after a gray divorce, you safeguard your future. Protect your assets and peace of mind by acting promptly.