Divorce is a major life event that affects nearly every aspect of your life. Between dividing property, adjusting to new financial realities, and reshaping your family dynamic, your estate plan might be the last thing on your mind. Failing to review and revise your estate planning documents after a divorce, however, can lead to serious and unintended consequences. To make sure your wishes are honored, the Arkansas attorneys at Wilcox Attorneys, PA discuss why it is important to review your estate plan after a divorce.
What Should You Review in Your Estate Plan After Divorce?
Once your divorce is finalized in Arkansas, it is important to review and revise your estate plan, so it no longer reflects your previous marital relationship. This helps to avoid future disputes and ensures that your assets go to the individuals you intend. Key areas to review and revise typically include:
- Last Will and Testament: Your Will determines who inherits your property and who will serve as your Executor. If your ex-spouse is named in either role, you should consider removing them. You may also need to name a new Guardian or Trustee for any minor children. While Arkansas law may automatically revoke your former spouse’s rights in some documents, relying solely on the law rather than making clear changes can result in confusion or legal challenges.
- Beneficiary Designations: Many financial accounts bypass the Will entirely and transfer directly to named beneficiaries. These include life insurance policies, retirement plans, and payable-on-death accounts. If your ex-spouse is still listed as a beneficiary, they may receive those assets despite your divorce. Although Arkansas may revoke such designations in some cases, this is not guaranteed. Updating them ensures your intentions are clear and enforceable.
- Revocable and Irrevocable Trusts: If you created a trust during your marriage, review its terms carefully. A revocable living trust can be amended to remove your ex-spouse as Trustee or beneficiary and while irrevocable trusts are more difficult to change, an experienced estate planning attorney may be able to help you seek court approval to modify the trust if necessary. Updating the terms of your trust ensures your assets are managed and distributed according to your current intentions.
- Healthcare Documents: Advance directives, including a Healthcare Power of Attorney and Living Will, let you designate someone to make medical decisions for you if you are unable to do so. If your former spouse is still named as your healthcare agent, you will likely want to choose someone else. Your Living Will should also be reviewed to confirm it reflects your current wishes regarding end-of-life care.
- Guardianship Designations: If you have minor children, you may want to name a guardian to care for them in the event of your death. Although a surviving biological parent usually assumes custody, there may be circumstances in which you would prefer someone else. You can name a trusted individual and an alternate guardian in your Will to provide guidance and ensure your children are protected.
- Powers of Attorney: A Durable Power of Attorney allows someone to manage your financial and legal affairs if you become incapacitated. If your former spouse was previously named as your agent, you should update this document to appoint a new, trusted person. This will help prevent an ex-spouse from retaining authority over your property or decisions.
- Property Ownership and Tax Considerations: After divorce, it is important to review how assets are titled. Joint ownership with your former spouse may result in unintended consequences, such as automatic transfers upon your death. Retitling property in your name alone or into a trust can help prevent this. Divorce can also impact your estate’s tax planning. Strategies that once took advantage of spousal exemptions may no longer be applicable. An attorney can help restructure your plan to account for these changes under Arkansas and federal tax law.
Do You Have Additional Questions about Divorce and Your Estate Plan?
For additional information, please sign up for one of our FREE estate planning webinars. If you have additional questions about reviewing your estate plan after an Arkansas divorce, contact the experienced Washington County, Fayetteville, Springdale, Rogers, Bentonville, and Northwest Arkansas elder law attorneys at Wilcox Attorneys, PA by calling 479-443-0062 to schedule your appointment today.
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