Estate Planning After a Divorce

Following divorce, we work with clients to review and update estate planning documents, retirement plans, insurance policies, and other documents to protect their assets, provide for loved ones, and ensure our client’s wishes are accurately reflected in their estate plan. Here are some key considerations for you:

1. Review and Update Your Will and Trusts

In Wyoming, a divorce automatically assumes that for purpose of inheritance under a Will, the ex-spouse has predeceased (died before) you. But there are other crucial terms which need to be addressed. Begin by reviewing your existing Will and any Trust documents you may have in place. Update beneficiary designations and revoke any provisions that name your ex-spouse as a beneficiary or executor, just to be sure.

We recommend creating or updating Trusts to safeguard assets for your children or other dependents.

2. Update Beneficiary Designations

You should evaluate and update beneficiary designations on life insurance policies, retirement accounts, and other financial assets. Ensure that designated beneficiaries align with your current wishes and do not include your ex-spouse, unless you intend for them to get the property.

Remember: you just paid to get a divorce.  Don’t leave property you fought hard to retain to the person from whom you just legally severed ties.

3. Guardianship and Custody

Your ex-spouse will still be the primary guardian of your minor children in the event of your death, unless their parental rights have been terminated.  You should consider the option of naming an independent trustee to manage what your children will inherit from you, in the event of your untimely death, if you do not trust your ex-spouse to manage the funds properly. 

You should revisit guardianship designations for your minor children, in the event of your incapacity or death. We recommend you discuss custody arrangements and potential guardianship issues with your ex-spouse or legal advisor to ensure the well-being of your children. If you can agree on an alternate guardian for your children, in case of both of your untimely deaths, a battle of who gets to be guardian may be avoided. Remember, you are both obligated to take care of your minor children, and act in their best interests. Coordinating the selection of Guardian with your ex-spouse will make your children’s lives less complicated in the event of both of your untimely deaths.

4. Asset Protection

You should consider strategies to protect your assets from potential claims by your ex-spouse or creditors.  

You and your ex-spouse should explore options such as asset protection trusts or prenuptial agreements for future marriages to safeguard your wealth for the benefit of your children. It is in your children’s interest that a subsequent spouse does not take and spend your hard-earned wealth, instead of that wealth going to your children.

5. Healthcare Directives

You should review and update advance healthcare directives, living wills, and medical power of attorney documents. Make sure the people you want handling your healthcare decisions are named in these documents. It is important to ensure that trusted individuals are authorized to make medical decisions on your behalf if you become incapacitated.

6. Future Planning for Blended Families

If you plan to remarry or have a blended family, you should discuss estate planning strategies to accommodate the needs of all family members.

Consider prenuptial agreements, trusts, and other arrangements to protect your assets and ensure fair distribution among your children from previous and current relationships.

8. Regular Review and Maintenance

It is very important, no matter what your marital status happens to be, to recognize the importance of regularly reviewing and updating your estate plan to reflect any significant life changes.

We recommend you review your estate planning documents once every three years or so to ensure they continue to align with your evolving circumstances and intentions.

By addressing these estate planning considerations with the guidance of a knowledgeable legal advisor, you can effectively protect your interests and provide for your loved ones after divorce. Your estate plan should reflect your current wishes and priorities, ensuring peace of mind for you and your family.