HOW WOULD A DIVORCE AFFECT OUR ESTATE PLAN?

In California, a divorce can have significant implications for your estate plan, affecting how your assets are distributed and who has authority to make decisions on your behalf. Let’s dig into this a bit:

Revocation of Spousal Beneficiary Designations: California law automatically revokes any provisions in a will, trust, or other estate planning documents that benefit your former spouse upon divorce. This means that if your estate plan named your ex-spouse as a beneficiary, executor, trustee, or agent, those provisions are generally invalidated upon divorce. However, it's still crucial to review and update your estate planning documents to reflect your changed circumstances and ensure that your assets are distributed according to your current wishes.

Beneficiary Designations on Non-Probate Assets: Divorce may also affect beneficiary designations on assets such as retirement accounts, life insurance policies, and payable-on-death (POD) or transfer-on-death (TOD) accounts. California law provides that divorce revokes beneficiary designations naming your former spouse, unless the divorce judgment or settlement agreement provides otherwise. It's important to review and update these beneficiary designations to reflect your new beneficiaries.

Effect on Joint Ownership: If you and your former spouse owned property jointly, such as real estate or bank accounts, the divorce may sever the joint tenancy or community property ownership, depending on the terms of the divorce judgment or settlement agreement. It's essential to clarify the ownership status of jointly owned assets and update your estate plan accordingly.

Spousal Fiduciary Roles: Upon divorce, California law automatically revokes any appointments of your former spouse as executor, trustee, or agent under a power of attorney or healthcare directive. However, you should still update these documents to appoint new fiduciaries who you trust to manage your affairs and make decisions on your behalf.

Guardianship of Minor Children: If you have minor children, divorce may necessitate a review of your guardianship designation in your will. You may need to update your will to designate a new guardian who will care for your children in the event of your death.

Legal Guidance: Consulting with us to help ensure that your estate plan is updated properly to reflect the changes brought about by divorce. We can provide personalized guidance based on your individual circumstances and help you navigate the complexities of estate planning after divorce.