5 Tips for Estate Planning During a Divorce

Divorce can be devastating both emotionally and financially. In addition to the ongoing minutia of attorneys and court dates, you need to take care of certain practicalities. It might be difficult to focus on amending your estate plans, but you must consider what would happen if they were left unchanged. Do you want your soon-to-be-former spouse to act as your health care proxy during an emergency? Would you let him retain your power of attorney? Forbes explains what you need to do to protect your assets and yourself.

1. Review your prenuptial agreement. The same goes for a postnuptial agreement. Your attorney has probably already looked this over, but you should do so as well. At the very least, it will give you a better idea of what you do and don't owe your spouse.

2. Learn which designations can be altered. Although you can change the beneficiaries on some assets during your divorce, you will not be able to do so with life insurance policies, retirement accounts, or pensions until the divorce has been finalized. These rules vary by state, so check with your attorney.

3. Update all your important documents. Whether or not your divorce is contentious, you will probably not want your soon-to-be-former spouse to have access to all of your assets--which is exactly what a durable power of attorney would allow. Revoke the previous power of attorney (notify your spouse via your lawyer), and choose someone else if you need. Assign a new healthcare proxy as well. Don't forget to update your will!

Forbes offers a few more suggestions. The goal of this is not to punish anyone; rather, your intention should be protecting your assets while fulfilling any obligations you have to your spouse. When in doubt, consult with your attorney. 

For further information, visit Forbes here: https://ow.ly/V46l30kCPKK

Do you have any advice for estate planning during a divorce? Share with us in the comments!