A divorce in Texas often has many moving parts and might require the division of assets, child custody and other legal matters. Some of these concerns become a priority as you deal with pressing issues that call for timely resolution.
Though perhaps not as time-sensitive as other issues, divorce means you should look once again at your estate plan.
Address beneficiary documents
Information from AARP stresses the importance of updating beneficiary designations after a divorce. This largely involves 401(k) assets and life insurance policies. By addressing these important documents in a timely fashion, you gain important benefits:
- The avoidance of assets going to the wrong person
- The ability to bypass some probate procedures
- The reduction of legal fees
- The simplification of your estate plan
The minor hassle of changing your beneficiaries pales compared to problems that could arise from failure to make changes. Review any documents that have a named beneficiary and take the legal steps to reflect your current situation.
Look at medical directives
After a divorce, you probably do not want your ex to have responsibility for your medical care. Again, review documents such as a medical power of attorney and make the necessary changes. This will ensure you have the right person looking out for your best interests if you become incapacitated.
Change your will
After divorce who you want to inherit your remaining assets will probably change. This is a good time to draft a new will and specifically address the division of assets as well as who gets sentimental items.
A divorce impacts many aspects of your life. Addressing estate plan issues can put you in a stronger position as you move forward.
