Divorce and Your Estate Plan: Crucial Post-Divorce Updates You Can't Afford to Skip
After navigating the emotional turbulence of divorce, the last thing you want is for your ex-spouse to retain control over your finances, healthcare, or your children’s inheritance. Yet, by neglecting to update your Estate Plan, that’s exactly what could happen.
The divorce decree settles your past, but your Estate Plan secures your future. A complete review is essential to ensure your assets and medical wishes are truly directed to the people you choose—your loved ones—and not the person you just divorced.
Top Issues to Address Immediately After Divorce
While state laws in Oregon may automatically revoke some bequests or appointments upon divorce, you must take proactive steps to confirm your intentions are legally ironclad.
1. Review and Re-Execute Key Documents
This is a critical step many people forget. Unlike Wills, beneficiary designations on financial instruments often override your Will's instructions.
Divorce requires you to revisit your plans for your children's future, whether they include your ex-spouse or not.
How Divorce Impacts Your Estate Plan in Oregon
If you're already in the process of a marital split, we understand your to-do list is anxiety-inducing—from dividing property to navigating custody. But taking a moment to address your Estate Plan now can save enormous stress later.
Your existing documents—Wills, Trusts, Healthcare Directives, and beneficiary designations—were created when your marriage was intact. If they remain untouched, you risk leaving your ex-spouse in control of major financial and medical decisions.
Here’s a breakdown of steps to consider, regardless of where you are in the divorce timeline:
Planning Before Divorce
While many formal changes must wait, advanced planning can alleviate future stress:
Some crucial updates can—and should—be made immediately:
The decree is final, now it’s time for the comprehensive sweep:
Don't Let the Past Control Your Future
Wherever you are in the divorce process, having a clear post-divorce Estate Plan is the single most effective way to lower stress by removing financial and legal unknowns.
Contact our office today to discuss the necessary updates. Let us help you secure your future and protect your legacy.
McKean & Knaupp Attorneys, LLC
503-846-0707
101 SW Washington St., Hillsboro, Oregon 97123
After navigating the emotional turbulence of divorce, the last thing you want is for your ex-spouse to retain control over your finances, healthcare, or your children’s inheritance. Yet, by neglecting to update your Estate Plan, that’s exactly what could happen.
The divorce decree settles your past, but your Estate Plan secures your future. A complete review is essential to ensure your assets and medical wishes are truly directed to the people you choose—your loved ones—and not the person you just divorced.
Top Issues to Address Immediately After Divorce
While state laws in Oregon may automatically revoke some bequests or appointments upon divorce, you must take proactive steps to confirm your intentions are legally ironclad.
1. Review and Re-Execute Key Documents
- Will or Trust: Any appointment (Trustee, Personal Representative or Beneficiary) you previously assigned to your ex-spouse is likely invalidated by the divorce. You must draft a new Will or Trust to name new fiduciaries and ensure gifts go to your intended heirs.
- Power of Attorney (POA) and Advance Directive: These documents grant others the power to make financial and medical decisions for you if you become incapacitated. Revoke the old documents and appoint new agents immediately.
This is a critical step many people forget. Unlike Wills, beneficiary designations on financial instruments often override your Will's instructions.
- Life Insurance Policies: Review and update designations on all policies, especially those required by the divorce judgment, to prevent your ex-spouse from collecting.
- Retirement & Investment Accounts: Change the beneficiaries listed on 401(k)s, IRAs, annuities, and brokerage accounts.
- Deeds and Titles: Review ownership on real estate deeds, vehicle titles, and bank accounts.
Divorce requires you to revisit your plans for your children's future, whether they include your ex-spouse or not.
- Update Guardianship: Align your legal documents with the current custody and guardianship arrangements.
- Protect Inheritances: Implement a plan, often via a Trust, for managing any inheritance your minor children receive. This ensures the funds are used to support your children according to your values, rather than being managed by an ex-spouse you may not trust with the money.
How Divorce Impacts Your Estate Plan in Oregon
If you're already in the process of a marital split, we understand your to-do list is anxiety-inducing—from dividing property to navigating custody. But taking a moment to address your Estate Plan now can save enormous stress later.
Your existing documents—Wills, Trusts, Healthcare Directives, and beneficiary designations—were created when your marriage was intact. If they remain untouched, you risk leaving your ex-spouse in control of major financial and medical decisions.
Here’s a breakdown of steps to consider, regardless of where you are in the divorce timeline:
Planning Before Divorce
While many formal changes must wait, advanced planning can alleviate future stress:
- Identify new Medical decision-makers for your Advance Directive.
- Determine new Financial and Legal agents for your Power of Attorney.
- Decide on new Personal Representatives (Executors) and Trustees.
- Start thinking about necessary changes to bank and investment accounts and beneficiaries.
Some crucial updates can—and should—be made immediately:
- Update Power of Attorney and Advance Directive: You do not have to wait until the divorce is final to choose new agents who will act solely in your best interests.
- Establish a Contingency Trust: In case of your death before the divorce is finalized, your attorney can help create a new Trust and a pour-over Will to direct assets there, minimizing the amount of your estate your soon-to-be-ex might control.
The decree is final, now it’s time for the comprehensive sweep:
- Comprehensive Review: Meet with your Estate Planning attorney for a full review of your entire estate plan and all assets and accounts.
- Draft New Documents: Your attorney will draft new legal documents that completely remove your ex-spouse and clearly direct your assets to your chosen loved ones.
- Account Security: Update and verify all changes to Deeds, titles, and bank accounts. Change all relevant passwords to accounts that hold financial or private information.
Don't Let the Past Control Your Future
Wherever you are in the divorce process, having a clear post-divorce Estate Plan is the single most effective way to lower stress by removing financial and legal unknowns.
Contact our office today to discuss the necessary updates. Let us help you secure your future and protect your legacy.
McKean & Knaupp Attorneys, LLC
503-846-0707
101 SW Washington St., Hillsboro, Oregon 97123