Divorce is a challenging process, and it can significantly impact your estate planning. If you’re going through a divorce in Texas, it’s crucial to understand how your assets, wills, and beneficiaries might be affected. Here’s what you need to know to protect your interests and ensure your estate plan remains effective. The following recommendations are always subject to any temporary orders that the family court may have put in place during a divorce proceeding so please also consult with your family law attorney.
Revising Your Will
One of the first steps you should take during a divorce is to revise your will. Your existing will likely includes provisions for your spouse, and you may want to change those.
- Update Beneficiaries: Ensure your assets go to the intended recipients by updating the beneficiaries in your will.
- Choose New Executors: If your spouse was named as an executor, appoint someone else who you trust to handle your estate.
Managing Joint Accounts and Property
Joint accounts and property can be tricky during a divorce. Texas is a community property state, meaning that most assets acquired during the marriage are considered jointly owned.
- Close Joint Accounts: Close any joint accounts to prevent your spouse from accessing funds without your consent.
- Retitle Property: Retitle property that you plan to keep in your name only to avoid complications.
Updating Beneficiary Designations
Beneficiary designations on life insurance policies, retirement accounts, and other financial assets need to be updated as soon as possible. Failure to do so could result in your ex-spouse receiving these assets even if your divorce agreement states otherwise.
Addressing Guardianship for Minor Children
If you have minor children, updating guardianship provisions in your will is essential. Consider who will care for your children if something happens to you.
- Ex-Spouse as Guardian: In most cases, your ex-spouse will be the natural guardian of your children if you pass away. However, it’s wise to have a contingency plan.
- Coordinate with Your Ex-Spouse: Ensure you and your ex-spouse agree on guardianship arrangements to avoid future disputes.
- Choose a Secondary Guardian: Select a secondary guardian who you trust and who is willing to take on this responsibility if your ex-spouse is unable or unwilling to do so.
- Create a Trust: Establish a trust to manage assets for your children’s benefit until they reach adulthood.
Estate Taxes and Asset Division
Understanding how your divorce will impact estate taxes, and the division of assets is crucial.
- Consult with Professionals: Work with a financial planner and an attorney to navigate the complexities of asset division and minimize tax liabilities.
- Plan for the Future: Consider how the division of assets will affect your long-term financial goals and estate planning.
Conclusion
Divorce necessitates a thorough review and update of your estate planning. By taking proactive steps, you can protect your interests and ensure your estate plan reflects your current wishes. Don’t wait until the divorce is final to address these critical issues.
Contact The Reecer Law Firm
At The Reecer Law Firm, we understand the complexities of divorce and estate planning. Our experienced attorneys are here to help you navigate this challenging time.
Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you have questions or need guidance with estate planning, please contact us at (940) 382-3168.
The Reecer Law Firm is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.
