While many believe that a decree of dissolution of their marriage is the cure-all to a troublesome marriage, many aren’t aware of the steps that should be taken post-dissolution to protect their interests. It is at this instance in the process of dissolution that family law and estate planning intersect.
First, a new divorcee should address the property that will not be included in his or her probate estate. This includes bank accounts or property that may have been jointly held with your spouse with a right of survivorship. Any property held with a “right of survivorship” means that once one spouse dies, the other will receive total ownership at the instant of your death. In addition, it is important to remember to change any beneficiary information on bank accounts, 401(k) accounts, IRAs, insurance policies, or vehicles. If you pass away and an ex-spouse is named as beneficiary on a life insurance policy there is little that can be done by other beneficiaries or heirs to correct the designation.
Secondly, it’s also important to change your will, or get one, especially if you have children. A will is used to nominate a guardian for children, and this guardian can petition the court for custody of the children. This designation is especially important if you do not want a former spouse to have custody of your children after your death. In addition, designating a guardian in your will is important if a former spouse predeceases you.
In addition, while I.C. 29-1-5-8 states, “if after making a will the testator is divorced, all provisions in the will in favor of the testator’s spouse so divorced are thereby revoked,” it is still important to rewrite an estate plan to address the change in circumstances and possibly name new beneficiaries to your will. Without naming new beneficiaries, your assets may be distributed according to the Indiana Intestacy Statute and certain relatives may receive a portion of your estate regardless of your intentions.
If you are contemplating a divorce or are recently divorced and are looking for an attorney to help alter your estate plan to address your new marital status an experienced attorney at Gordon A. Etzler & Associates can help!
