If you already have an estate plan in place when you divorce, you’ll likely need to make important changes to it. Many people don’t know where to start.
While you likely don’t want to sit down in yet another law office, it’s important to review your estate plan as you begin the divorce process. This will help you understand the relevant laws and determine what changes to make – as well as when you can make them.
Every situation is highly unique. Here we’ll cover just a couple of key changes that people often inquire about.
Can you “disinherit” your spouse? If so, when?
These are often people’s first questions. You can likely remove your soon-to-be ex as a beneficiary at any time. However, as long as you’re still legally married, if you were to pass away before the divorce is final, they would still be able to get approximately half your assets under Texas’ community property statutes. That’s, unless you have a valid prenuptial or postnuptial agreement in which they’ve given up their inheritance rights.
When the divorce is final, the law automatically removes your spouse as a beneficiary (as well as from any fiduciary duties, like executor). The law states that “all provisions in the will, including all fiduciary appointments, shall be read as if the former spouse…failed to survive the testator.” If you still want to include them in your estate plan or you’re required to under the terms of your divorce agreement, you can. You’ll just need to include language specifying that.
What about other places where your spouse is a designated beneficiary?
Note that if your spouse is a beneficiary on any accounts or insurance policies that you hold individually, you’ll need to notify the party (like a financial institution or insurance company) if you want to remove them. They typically don’t make changes based on a divorce decree.
As noted, each case is very different. There’s a lot more to know about updating your estate plan as you divorce. With experienced estate planning guidance, you can help ensure that your estate plan reflects the necessary changes as you go through this significant life event.