Handling Your Estate Planning Documents &
Finances Post-Dissolution Decree
So you’re divorced, now what? The answer is not always so simple.
Divorce may be expensive, it may be lengthy, and it may very well be stressful. Once it is ‘over’ in the sense that a court has issued a dissolution decree, it may also bring about a sense of relief. However, life post-divorce can be overwhelming, as you are now a single individual that has lived with and shared assets, passwords, and estate planning documents with a significant other for a period of time. The purpose of this blog is to provide insight into some considerations an individual should think about as they navigate their post-divorce life.
Access to Personal Accounts, Bank Accounts, Personal Documents
Changes to Estate Planning Documents
You may have appointed your former spouse as your power of attorney or health care representative either effective immediately or if you became incapacitated. Consult your power of attorney and health care representative documents to ensure they accurately reflect your desired appointment for power of attorney or health care representative. If they do not, it would be wise to contact an attorney to execute new documents and ensure that any notification requirements are satisfied if required by your jurisdiction.
An individual appointed as power of attorney may have access to your bank accounts and personal information pursuant to the document’s terms and/or the laws in your state. You may want to consider updating any HIPAA authorization and/or your Living Will to prevent unwanted access and control over your health information as well.
You and your spouse may have executed individual Last Will and Testaments and individual or joint Trusts with accompanying documents. Review these documents and any companion documents to ensure that the proper individuals are appointed to serve as your Executor or Personal Representative upon your death or Trustee in the event of death or incapacity. Also, ensure that any specific gifts made via Will or Trust reflect your current wishes, as well as individuals entitled to the residuary of your estate. If any changes are needed, you may be able to execute a Will Codicil or Trust Amendment. If you need to make any changes to your estate planning documents, contact an estate planning attorney to ensure that it is done correctly.
Your living situation
Have you figured out a living situation? Were you awarded the marital residence? If you were awarded the marital residence, ensure that your name is on the deed and that any financing on the home is updated to reflect your situation.
Your Finances
Of importance is to ensure that you build up an emergency fund. Your divorce may have been a long process, and you may have accrued attorney fees. The thought of trying to save money again may be scary but be patient and trust that you will be okay.
Budgeting for life post-divorce means taking a second look at your finances and ensuring that your budget fits your needs. You may have a child support obligation and other financial obligations pursuant to the dissolution decree. Consider how a support obligation may impact your budget. Furthermore, ensure that these obligations are added to your weekly, monthly, and yearly budget. Any goals to save for the future or for your children and possibly their education may be impacted. Be realistic about what you can do in the short term to ensure that you are setting yourself up for long-term financial success.
The dissolution decree may provide that you can claim a child every year, in odd years, or in even years. If it is a rotating schedule, this will impact your taxes. Meet with a tax advisor, if you have one, and discuss how this will impact your tax burden.
Your finances also include access to your bank accounts. You likely had joint bank accounts with your spouse, you may have had them as a beneficiary of your account(s) in the event of death. Double check this and change it so your accounts are in your name.
Finally, your credit may have been impacted. Keep an eye on your credit score, especially if you plan on making any major purchases.
Beneficiaries to Life Insurance, Health Insurance, and Retirement Accounts
Your dissolution decree may have provided that your former spouse gets a share of one or more of your retirement accounts. For those accounts not impacted, ensure that your designated beneficiaries are updated. Ensure that your current life insurance beneficiaries reflect your wishes. Finally, ensure that you are properly covered by your health insurance and not providing any extra coverage to your former spouse unless you are obligated to do so by dissolution decree.
Of course, if you have any questions, ask your attorney. Divorce is stressful but it is our job to do what we can to help. The above information is not meant to be an all-inclusive list, but provide a snapshot of what to consider post-divorce.
Written by: Samuel Crawford
Sam Crawford is an attorney licensed in the State of Indiana. Sam attended Indiana University Bloomington for his undergraduate degree, majoring in Law and Public Policy and minoring in Spanish. After graduating in 2020, Sam decided to attend law school at Indiana University’s law school, Maurer School of Law. Sam has experience in both elder law and family law, and is passionate about helping clients navigate complex life experiences.
Learn more about Sam here.
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THE INFORMATION PROVIDED IN THIS POST IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. LAWS AND REGULATIONS VARY BY STATE, COUNTY, AND SPECIFIC CIRCUMSTANCES OF YOUR MATTER, AND THE INFORMATION PRESENTED HERE MAY NOT APPLY TO YOUR PARTICULAR SITUATION. ALWAYS CONSULT WITH A QUALIFIED FAMILY LAW ATTORNEY TO OBTAIN ADVICE TAILORED TO YOUR INDIVIDUAL CIRCUMSTANCES. REVIEWING THIS BLOG POST DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP BETWEEN YOU AND THE AUTHOR, PUBLISHER, BARROW BROWN CARRINGTON, PLLC OR ITS ATTORNEYS. THE AUTHOR AND PUBLISHER ARE NOT RESPONSIBLE FOR ANY ACTIONS TAKEN BASED ON THE INFORMATION PROVIDED IN THIS BLOG POST.
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