Once a divorce is finalized, all the progress you put into your estate plan can be undone if you fail to keep it updated. Even though this is a niche area of divorce, it’s still a very important one. Failing to keep it updated can give your ex-spouse power unintentionally. Ultimately, divorce does change more than just your marital status, but your legal rights and obligations as well.
Reviewing and Updating Your Will
It’s common for most peoples’ wills to contain the names of your former spouse as a beneficiary or executor. Getting this updated as soon as possible will make certain that your will is carried out based upon your current wishes. Under California state law, if a marriage ends after your will has been executed, then all provisions that are in favor of your ex-spouse get automatically revoked unless the will specifies against it. While this is the case, it’s still important that you update the beneficiary, executor, etc. to reflect who you would like to oversee it. It’s also important to keep in mind that making minor children in charge of your will can be a slippery slope and you should carefully review your decision before finalizing it.
Beneficiary Designations on Financial Accounts
This area of post-divorce is one of the most overlooked. Making sure you update all of your beneficiaries is essential in areas like retirement accounts, life insurance policies and annuities. While California does generally revoke an ex-spouse in the case of most assets, it doesn’t apply to everything, and failing to update beneficiaries can cause delays, disputes, or further litigation.
Other accounts that should be considered a top priority to update include employer-sponsored retirement plans, individual retirement accounts, and all insurance policies. Having that reassurance that your current beneficiaries actually align with your wishes prevents disputes and unintentional results.
Ultimately, you should never assume that California state law automatically protect you and you should always aim to update everything regardless.
Trusts and Long-Term Financial Planning
Divorce is known to drastically impact trusts and long-term financial plans. In many cases, an ex-spouse might be named as a trustee or decision-maker under a trust that was created during the marriage. These initial delegations could no longer be what you wish for your future financial plans and could spark complications if you leave it as is.
Planning after a divorce can involve adjusting a trust, terminating it, or creating a completely new structure. Trusts are usually very useful in protecting assets for children and keeping assets safe. Since they usually hold tax and legal implications, having professional guidance to make sure that all updates are made thoughtfully and thoroughly while complying with the law is highly advised.
Updating Property Titles and Ownership Records
Judgements on divorce typically call for the transfer or division of property, however the legal work isn’t always limited to the court order. Property titles for things like homes, cars, and businesses must be formally updated to match the new structure of ownership. If you fail to retitle these assets correctly, this can cause disputes or delays down the line.
Making sure that all deeds, titles, and ownership records correlate with the terms set in the divorce agreement is what helps to protect your rights and prevents future legal issues. This is specifically important for real estate and closely held business interests where outdated records can spark substantial financial issues down the line.
Also take note of the fact that in California, court orders and title records are separate legal steps that must be taken, so having the right legal team to guide you through it all will only benefit you in the long run.
Seeking Legal Guidance
The divorce process is never easy. Managing the legalities both during and after can be overwhelming and complex for men in California specifically, so having the right attorney to rely on will only benefit you in the long run. Men’s Legal Center in San Diego has just that. Make sure you reach out for your free case review as soon as possible.