Divorce and Estate Planning Documents

Estate planning sounds like something only the rich and powerful would do, but in fact, we all have estates, and we all need to plan for our future and the future of our loved ones. A will is one of these important estate planning documents but it’s not the only one. In the event of divorce, these documents are even more important – and if you’ve already created any of them, they will probably need to be changed. We here at the Law Office & Mediation Services of Elissa C. Goldberg, LLC help our clients protect their assets by guiding them through these important steps. 

What is estate planning?

Estate planning refers to any plans you make in advance for your care if you are incapacitated, the care of any minor children, and the distribution of anything you own upon your death. Estate planning can include any of the following: 

• In the event that you are physically or mentally incapacitated, instructions regarding a medical power of attorney (the person who will make medical decisions on your behalf), your wishes regarding your care, and your wishes regarding the care of any minors or your financial affairs (A “living will” could be a part of these instructions)
• Disability insurance to cover your income if you become disabled; long-term care income for extended illness; life insurance income to provide for your family after your death
• Cemetery plots or arrangements with a funeral home
•  A last will and testament, stipulating the distribution of assets after your death, naming power of attorney; naming your beneficiaries, and any particular items from your estate that you wish distributed to particular individuals
• Naming of guardians for any minor children or dependents with special needs in a manner that does not exempt them from government support
• Access to financial resources, such as bank accounts, retirement accounts, stocks, bonds, safe deposit boxes, safes, etc.
• Living trusts to shield assets from taxes and probate court

This is an incomplete list of documents that should be completed. Your particular needs may point to other planning. For instance, if you own a business, you will need to clearly define who will take over in the event of your incapacitation or death and if the company will be sold, dissolved, or passed on to an heir. 

What you need to change if you’re getting a divorce

If your soon-to-be ex-spouse is designated as your legal power of attorney or medical power of attorney, change that immediately. 

Talk to your divorce attorney about how to handle insurance policies and beneficiaries on investments and retirement accounts before you are divorced as they may be part of the marital assets and subject to distribution. After your divorce, make sure to rewrite your will so that your spouse is removed from any distribution of your property or control over your property. Name new beneficiaries and powers of attorney in your insurance policies, your new will, and your retirement or other financial accounts. 

During your divorce, you need to proceed with caution when it comes to your bank accounts and other financial instruments. If you have joint accounts (including credit cards) you cannot just remove your spouse. It is a good idea to set up your own bank accounts and let the attorneys work through agreements on how joint accounts are going to be handled. Any joint credit cards can usually be closed but again, talk with your attorney first, especially if you currently use them to pay for child-related expenses or expenses in the marital home.  

Why you should seek legal help for estate planning during a divorce

The obvious legal issues regarding financial resources are important reasons in and of themselves to seek legal help. You don’t want to take any actions that might jeopardize the power of your negotiations, make it difficult to make ends meet, or break the law. 

Legal help from an experienced divorce attorney can also help you avoid other blunders, such as forgetting obscure documents or joint accounts that you need to remove your spouse from, such as insurance, children’s accounts, or online stores with credit cards attached.

Contact us in our Doylestown office in Bucks County, PA, at (215) 345-5259 to see how our attorneys can help you protect your assets and help you through every aspect of your divorce and settlement.