Thinking about the Future
Once you are done with your divorce, it can be hard to think about the future that lies ahead. Emotionally, it might not feel like the right time to handle thinking about your estate, but this is actually a great time to start thinking about and planning for what lies ahead. Due to many of the issues that arise during divorce, you have a clear list of assets and property that is beneficial and can now be used as a guide to estate planning.
Wills
One of the things that needs to be addressed is what happens to your property after you eventually pass away. In the state of Tennessee, sections of a Will that include your former spouse as a beneficiary (someone who gets something from you after you die) or in an executive role (including an executor, trustee, conservator or guardian) is considered automatically revoked unless provided otherwise.
This is great news in the short-term, as you do not have to worry about your former spouse unrightfully taking things that you do not want them to have. However, in the long term it is important to think about the best ways your estate should be handled. Appointing new people into those positions is one step to take towards that goal.
Remember, many other states may not have a similar provision that Tennessee has, so it is a good idea to update accordingly.
Insurance
It is very important that once you get divorced you take look at your insurance policies and beneficiaries. This is incredibly important in the area of Life Insurance.
Most Life Insurance policies do not contain clauses that will change the recipient of the Life Insurance payout automatically on divorce. Because of this, if your former spouse was supposed to get paid upon your death when you were still married, then they will continue to get paid unless that is changed.
Be sure to speak with your life insurance provider to change the beneficiary to someone who you want to receive the proceeds.
Retirement and Financial Accounts
These are typically handled in a divorce proceeding and divided accordingly, but it is still important that you investigate any relevant retirement and financial accounts to revoke access to your former spouse if you do not want them touching those funds. Be sure to reach out to any account provider for your 401(k), IRAs, pensions, or other similar accounts to confirm.
Children
In the event of your death before any children you have come of age, your former spouse will obtain custody. However, if this would otherwise harm the children, then it is a good idea to list out a Guardian in your Will for the Court to consider. It is also a great exercise of co-parenting to jointly appoint a Guardian in case both parents would die before the children.
Granted, this is a lot to think about, but it can be made easier with the help of financial, insurance, and legal professionals. Held Law Firm would like to help.
Give us a call at 865-637-6550.
