When planning for your future, a Will is an essential document to have in place in the event of your death, and a Power of Attorney is essential to allow others to take care of certain matters on your behalf when you may not have capacity to do so yourself.
A Will outlines how you want your assets or Estate distributed and provides a clear plan for your loved ones after you're gone.
A Power of Attorney allows your family to care for you in accordance with your wishes, during your lifetime.
Life is unpredictable and your circumstances can change drastically. One significant event that can alter the validity of a Will is divorce. To complicate matters even more, a separation alone without a divorce order, will still allow a former spouse to claim against your Estate. Therefore, it is imperative to execute a Will after separation and after a divorce order, given separation and divorce are sometimes events that occur years apart.
Divorce can complicate estate planning, especially if a Will was created before the marriage ended. Divorce automatically invalidates a Will. However, separation does not have the same effect. This means that if you left your ex-spouse as a beneficiary, executor, or guardian for your children, those designations may still operate even though you have separated, and the Will may therefore no longer reflect your wishes.
If your Will named your former spouse as the executor or guardian for your children, those appointments might also be invalidated. An executor is responsible for managing your Estate, paying debts, and distributing assets according to your Will. A guardian takes care of your minor children. After a separation, you may want to reconsider these appointments, especially if the relationship with your former spouse is contentious or if circumstances have changed.
Given the automatic invalidation of a Will following a divorce order, and the change in circumstances following a separation, it's crucial to update your Will after separation and after a divorce. This ensures that your assets are distributed according to your current wishes and that your estate is managed by someone you trust. Failing to update your Will can lead to unintended consequences, such as assets being distributed in a way that doesn't reflect your current wishes or legal battles among your surviving loved ones.
⦁ Review Your Will and Powers of Attorney: Examine your current Will and identify any provisions that need to be amended following this significant change in circumstances. Pay special attention to beneficiary designations, executor appointments, and guardianship arrangements.
⦁ Update Beneficiaries and Bequests: Besides your Will, remember to update beneficiaries on life insurance policies, superannuation accounts, and other financial assets. Divorce may not automatically revoke these nominations, so you need to change them manually.
⦁ Communicate with Family: While discussing estate planning can be uncomfortable, keeping your family informed about your decisions can prevent misunderstandings and conflicts in the future.
Divorce is a significant life event that can have a profound impact. By understanding how divorce affects your Will and taking proactive steps to update your documents, you can ensure that your wishes are respected and that your loved ones are taken care of according to your intentions. It's always wise to consult with a legal professional to navigate the complexities of life after a divorce and to ensure your plans are legally sound and up-to-date.
Please contact Jovana Christides of our office if you have any questions or wish us to take care of preparing these important documents for you.
