Estate Planning During Divorce Considerations
Going through a divorce? Do not forget about your estate plan.
When getting a divorce, you will inevitably face many changes. Your family structure will change, you may not see your children as much, and you may also incur new debts such as alimony or child support. There are also changes that many people do not automatically think of, mainly the changes that must happen within the couple’s estate plan, or the plan that one of the spouses has created separately.
If you are getting a divorce, a Texas estate planning attorney can help you make the necessary changes. In the meantime, below are the most important things you should consider while planning for your estate during a divorce.
Consider What Changes Need to be Made
You may already have a number of different policies and documents such as a will, a health care proxy, a power of attorney, life insurance policies, and more. The chances are good that you and your spouse created these plans and documents together. Most of the documents you have created will need some updating, and you may even have to revoke the old documents altogether and create a new plan. After divorce, you may want to change your beneficiaries, guardians, or other instructions, as your priorities will now be different than they were during your marriage.
Understand Your Life Insurance
If you and your spouse purchased life insurance together during your marriage, upon divorce you want to ensure that you completely understand it. Review the policy and determine who is responsible for making payments, and what the policy guarantees. The person that owns the policy will continue to be the one responsible for paying the premiums and ensuring the policy remains enforceable. The owner of the policy can also make any changes to the beneficiaries. If you own the policy, you may want to make these changes. On the other hand, if you do not own the policy, you will still want to ensure you and your family are taken care of in the event that your former spouse passes away.
Set Up a Trust
Revocable living trusts can provide a means of paying alimony and child support after divorce. The spouse that creates the trust also funds it and payments are made according to the provisions of the trust. When a trust is in place, the funds can also be distributed to the beneficiaries without being held up in the long process of probate. Revocable living trusts also have certain tax advantages that can help spouses going through a divorce.
Speak to a Texas Estate Planning Attorney
Getting a divorce is overwhelming. Thinking about things like trusts, wills, and complete estate plans can certainly add to the stress of it all. It is for this reason that anyone getting a divorce should speak to a Pearland estate planning attorney. At John Powell III, P.C., we will review any documents you currently have and advise on the necessary changes that need to be made. If you are going through a divorce, we can help. Call us today at (832) 850-6095 or contact us online to schedule a meeting with our attorney.