How does Divorce affect your Estate Planning

Our business was named after Soteria – the Greek goddess of preservation. Sometimes, some things sim...

Our business was named after Soteria – the Greek goddess of preservation. Sometimes, some things simply can no longer be preserved and the perfect example of this is marriage. Divorce is a life-altering event that affects various aspects of someone’s life, including financial matters and legal arrangements. Amidst the emotional turmoil, it is important not to overlook the impact of divorce on your Estate Planning, specifically your Will.

Updating your Will after a divorce is essential to ensure that your assets are distributed according to your wishes and that your loved ones are protected. Below are some of the key considerations and steps to take to navigate the impact of divorce on your Will effectively.

1. In England and Wales, divorce will the majority of the time automatically revokes certain
   provisions in a will that relate to the former spouse. This means that if your will includes
   your ex-spouse as a beneficiary, executor, or trustee, those appointments would be void
   after divorce.
2. Updating your Beneficiaries is important and as well as your Will, it is crucial to review and
   update beneficiary designations on your accounts, such as pensions, life insurance policies,
   and death in service benefits. Failing to update these policies can result in unintended
   consequences, with your ex-spouse potentially receiving assets that you intended for other
   beneficiaries, such as children or new partners.
3. The distribution of your assets may change. A divorce can often lead to significant changes
   in your asset ownership and financial situation. Updating your will allows you to redefine
   how your assets should be distributed after your passing. Consider your new priorities,
   relationships, and obligations when making decisions about who should inherit your
   property, financial resources, and personal belongings.
4. Appointing New Executors and Trustees. It is common for individuals to name their spouse
   as an executor or trustee in their will. Following divorce, you may want to reconsider these
   appointments. Choose individuals whom you trust to manage your estate and carry out your
   wishes impartially. Consider their ability to work with your new family dynamics and ensure
   they are willing to take on the responsibilities of these roles.

Divorce brings about significant changes in anyones life, including the need to update legal and financial arrangements such as your will. Failing to address the impact of divorce on your estate plan can result in unintended consequences and complications for your loved ones. By taking proactive steps to update your will, review beneficiary designations, and make necessary changes, you can ensure that your estate plan reflects your new reality, protects your loved ones, and upholds your wishes.

Don’t be afraid to seek professional advice to navigate these changes effectively and provide
peace of mind for the future. Here at Soteria Planning we’re happy to have a free no-obligation discussion with you to provide some initial advice.