Family Lawyer In Scottsdale AZ
Going through a divorce is not just an emotionally draining process; it also involves a significant realignment of one’s financial life. This is particularly true when it comes to estate planning, which can become complex during and after a divorce. In this blog, we’ll take a close look at some key strategies to preserve your wealth and ensure that your estate planning objectives are maintained during divorce proceedings in Scottsdale, Arizona.
Understanding The Importance of Estate Planning in Divorce
It’s easy to overlook estate planning amidst the turmoil of divorce. However, it is crucial to prioritize this aspect of your financial management to protect your interests and those of your children or other dependents.
During a divorce, several changes occur in terms of ownership, beneficiary designations, and powers of attorney. The very structure of your wealth, assets, and liabilities may change, and consequently, your estate plan likely will no longer reflect your wishes.
Review Your Current Estate Plan
Begin by understanding the implications of your divorce on your current estate plan. Does your soon-to-be-ex-spouse feature prominently in your will or trust? Are they the primary beneficiary on your insurance policies or retirement accounts? Most importantly, are you comfortable with these arrangements continuing, even in the event of your death during the divorce process?
In Arizona, divorce automatically revokes any provisions in your will that favor your former spouse. However, this doesn’t apply until the divorce is finalized. During the divorce process, your soon-to-be ex-spouse may still be eligible to inherit or make decisions on your behalf. It is thus imperative to review and revise these documents early in the divorce proceedings.
Update Your Beneficiary Designations
After a divorce, you may need to change the beneficiaries on your life insurance policies, retirement accounts, and other assets. This process isn’t automatically done, and forgetting to do so could result in these assets unintentionally going to your ex-spouse upon your death.
Also, if you have children, consider setting up a trust to manage the assets they would inherit. This can provide for their needs without giving control of those assets to your ex-spouse.
Select New Powers of Attorney
In many estate plans, spouses designate each other as financial and healthcare powers of attorney. If you’re getting divorced, it’s essential to revoke these designations and appoint new powers of attorney. This individual will make critical decisions on your behalf if you’re unable to do so.
Divorce Lawyer Near Me
Navigating estate planning during a divorce is complex and requires professional guidance. Our experienced divorce attorneys from Owens & Perkins are familiar with Scottsdale, AZ laws and can provide valuable insights into the process and help you protect your wealth and plan for the future.
Remember, estate planning isn’t a one-time process; it needs to evolve with the changes in your life. Divorce is one such significant change, and adapting your estate plan to reflect this new reality can help preserve your wealth and protect your loved ones.
As challenging as divorce can be, it’s an opportunity to reshape your estate plan to meet your changing needs and goals. By proactively addressing these issues, you can ensure your financial security and peace of mind during this difficult time.
In Scottsdale, Arizona, do you need legal help with your estate planning during a divorce? Don’t navigate these complex waters alone. Reach out to Owens & Perkins, our experienced team of divorce and estate planning lawyers can help you in preserving your wealth and securing your future.