Your Divorce Decree: The First Step in Estate Planning

Why Estate Planning Matters After Divorce

When you were married, your estate plan likely revolved around your spouse. You may have:

• Name them as your beneficiary on insurance or retirement accounts.

• Granted them power of attorney for health care or finances.

• Created joint ownership of property or bank accounts.

After divorce, those assumptions no longer apply — and in some cases, they can create serious legal confusion.

Example: If your ex-spouse is still listed as the beneficiary on your life insurance, they may receive the payout even if your divorce decree says otherwise. Some states revoke such designations automatically — others don’t.

Start With the Divorce Decree

Your divorce decree is your roadmap for what must happen next. It usually includes:

• Division of property and debts

• Spousal and child support obligations

• Life insurance or beneficiary requirements

• Custody or guardianship arrangements

Before updating your estate plan, review your decree with your attorney to confirm what’s required by law — and what can now be changed.

Tip: If your decree mandates that your ex remain a life insurance beneficiary (for child support security), you must honor that clause until it expires.

Update Beneficiary Designations Immediately

One of the most common — and dangerous — post-divorce mistakes is failing to update beneficiary designations.

Check and update your:

• Life insurance policies

• 401(k), IRA, or pension accounts

• Pay-on-death (POD) bank accounts

• Transfer-on-death (TOD) investment accounts

Even if your will says otherwise, beneficiary designations override your will.
If your ex-spouse’s name is still listed, they may legally inherit those funds.

Revisit Property Ownership

Joint ownership can create hidden problems after divorce.

If you still co-own a home or investment property, make sure the deed matches your agreement. You may need to:

• Refinance or remove your ex-spouse’s name from the mortgage.

• Update the deed title to reflect sole ownership.

• Consider whether the property should be placed in a revocable living trust for easier management or transfer later.

Pro Tip: Keeping property jointly titled “for convenience” can backfire — if one ex-spouse passes away, the survivor may inherit everything automatically.

Review Financial Powers of Attorney

If your ex-spouse was named as your agent under a Durable Power of Attorney, they could still have the legal authority to manage your finances, pay bills, or sell assets.

Revoke those documents immediately and create a new power of attorney naming:

• A trusted friend, adult child, or sibling, or

• A professional fiduciary if appropriate

Without an updated POA, you risk giving your ex unintended control over your financial affairs.

Update Health Care Directives

Your health care proxy, medical power of attorney, or living will likely lists your ex-spouse as the person authorized to make medical decisions.

Ask yourself:

“Do I still want my ex deciding whether I receive life support?”

If the answer is no — update it now.
Choose someone who truly understands your current values and medical wishes.

Plan Carefully for Minor Children

If you have children, your estate plan should ensure their security and guardianship especially if you or your ex remarry.

Important points to review:

• Guardianship designations: If you pass away, your ex-spouse usually becomes the default guardian. But if they are unfit, or if both parents pass away, a will should name a backup guardian.

• Trust planning: Instead of leaving assets directly to minor children (which courts can restrict), establish a trust managed by a responsible adult or trustee.

• Life insurance: Maintain coverage to support your children, but make sure the trust, not your ex-spouse, is the beneficiary.

Tip: A “child’s trust” ensures funds are used for your children’s benefit — not controlled by your ex.

Reassess Your Will and Trust

Your old will likely names your former spouse as:

• Executor (the person who settles your estate)

• Primary beneficiary

• Trustee for any minor children

It’s time to start fresh.
Create a new will and review any trusts to:

• Remove your ex-spouse from roles of authority

• Redirect inheritances to your children or loved ones

• Add protective provisions for remarriage or blended families

Note: In many states, divorce automatically revokes spousal inheritance provisions in wills — but it’s still smart to create new, clean documents to avoid confusion.

Don’t Forget Digital and Personal Assets

Update passwords, account recovery settings, and access permissions for:

• Online banking and investment accounts

• Cloud storage or digital photo albums

• Email and social media accounts

Also consider personal property — family heirlooms, jewelry, or sentimental items may need new designations in your will or trust.

Review Regularly

Divorce is just one life event that requires an estate plan review.
As we advance, update your plan after:

• A new marriage or partnership

• The birth or adoption of children or grandchildren

• Major purchases or financial changes

• Moving to a new state (laws vary!)

Your estate plan should evolve with your life — not stay stuck in the past.

Final Thoughts

Your divorce decree isn’t just the end of your marriage — it’s the beginning of your next chapter in control and clarity.

By aligning your estate plan with your post-divorce life, you protect your children, preserve your wishes, and prevent your ex from inheriting or managing your affairs.

Whether you’ve recently divorced or it’s been years, take this as your reminder: your estate plan deserves a fresh start.