Divorce is a life-changing event that affects not only your personal and financial life but also your estate plan. Many people overlook the importance of updating their wills, trusts, and beneficiary designations after a divorce, which can lead to unintended consequences. If you are going through or have recently finalized a divorce, now is the time to revisit your estate plan to ensure that your assets are protected and distributed according to your wishes. 

Why Estate Planning Matters After Divorce

When you were married, your estate plan likely reflected a shared vision for the future with your spouse as a primary beneficiary or decision-maker. However, once a divorce is finalized, failing to update these documents can leave your ex-spouse in control of critical financial and healthcare decisions, or even inheriting your assets against your wishes.

Georgia law provides some automatic changes upon divorce, such as revoking certain provisions under your estate plan. However, this does not apply to all estate planning tools, such as trusts, retirement accounts, and insurance policies. That's why a proactive approach is necessary.

Key Estate Planning Updates After Divorce

1. Revise Your Will

   • If your ex-spouse is named as a beneficiary, executor, or trustee, update these designations to reflect your new circumstances.
   • Consider appointing a trusted family member, adult child, or financial professional to oversee your estate.
   • If you have minor children, update guardianship provisions to ensure their care aligns with your wishes.

2. Update Your Trusts

   • If you established a revocable living trust during your marriage, review and revise its terms to remove your ex-spouse if necessary.
   • If your children are minors, consider setting up a new trust to control how and when they receive their inheritance.
   • Ensure that any trusts meant to provide for your ex-spouse comply with the terms of your divorce decree.

3. Change Beneficiary Designations

   • Divorce does not automatically remove your ex-spouse as a beneficiary on life insurance policies, retirement accounts (401(k), IRA), or payable-on-death (POD) accounts.
   • Updating these designations ensures that your assets pass to your intended heirs, such as children, siblings, or a new spouse.

4. Modify Power of Attorney and Healthcare Directives

   • If your ex-spouse was designated as your financial or healthcare power of attorney, revoke these documents and assign someone new.
   • Consider naming a trusted family member or friend to make financial and medical decisions if you become incapacitated.

5. Review and Protect Your Assets

   • If your divorce involved the division of assets, ensure that your estate plan reflects the property you now own.
   • If you remarry, consider a prenuptial or postnuptial agreement to protect your assets for your children and future beneficiaries.

Estate Planning for Parents After Divorce

If you have children, updating your estate plan is even more crucial. While Georgia law prioritizes biological parents for custody, a solid estate plan can ensure your wishes are honored:

• Guardianship Appointments: If you pass away, the surviving parent will typically have custody, but you can still nominate an alternative guardian if circumstances require it.
• Trusts for Children: A trust ensures that any inheritance is managed responsibly, preventing a young child or an ex-spouse from mishandling assets.
• Life Insurance Planning: Designate a trust as the beneficiary instead of directly naming minor children, ensuring the funds are managed appropriately.

Divorce is not just about dividing assets—it's about rebuilding and securing your future. Failing to update your estate plan can result in your ex-spouse receiving assets or making decisions on your behalf. Taking the time to revisit your estate plan with an attorney ensures that your wishes are honored and that your loved ones are protected.

If you are going through a divorce or recently finalized one, contact our firm today. We specialize in both family law and estate planning and can help you craft an estate plan that aligns with your new reality. Don't leave your future to chance—take control today.