01 Nov Divorce Doesn’t Need to Disrupt Retirement
There is nothing easy about divorce. It can be painful, messy and financially devastating. Divorce can be especially difficult when it comes to a long-term couple. Dividing up assets and your estate for future planning or retirement can be a difficult process following divorce. Entering into a second marriage or a blended family also brings certain complications. The best thing to do is to consider all the options and ensure your wishes are written out exactly. Phelps Law (serves Scottsdale, Phoenix, Gilbert, Chandler and Mesa areas in Arizona) not only provides excellent asset protection, but also revises estate plans to take into account recent divorces or upcoming marriages.
Steps To Divorce and Estate Plans
When divorcing or entering into another marriage, it is imperative to divide funds and assets as fairly as possible, and to update your estate plan to reflect your specific wishes. Certain steps to be sure to take include:
- Knowing Your Assets: Be aware of what is considered joint property in your marriage and what is separate property. Knowing what is yours separately and what is considered joint property will better equip you for going into another marriage or planning for the future following divorce.
- Taking Trusts Into Consideration: There are certain trusts that can be put into place in order to protect your children’s inheritances upon the case of divorce. There are specific trusts that work well for blended families, and that make certain that your wishes are followed upon your death, no matter your marital status at the time.
- Updating Your Beneficiary:This is extremely important as this can change over time and through divorce or remarriage. The beneficiary is the one who will distribute your assets, and therefore should continually be someone you trust completely to carry out your wishes as you have set them out.
- Keeping Good Records: Going over your estate plan every few years will enable you to be certain that your wishes will be followed and your loved ones’ futures are secure. Regularly reviewing your records will also allow for all your retirement accounts to be covered and avoid probate upon ending a marriage or starting a new one.
There are many difficulties and frustrations to work through when it comes to divorce or remarriage, but estate planning does not have to be one of them. We want to be here to help the process go as smoothly as possible so that your loved ones do not have to worry about the future, and you can rest assured that your wishes will be followed.
Contact Phelps Law today to learn more about the benefits of great estate planning and strategies to handle divorce or remarriage.
Images used under creative commons license – commercial use (10/19/2017) Tyler (Flickr)