One of the most stressful experiences a person may have in their lifetime is divorce. A divorce, whether cordial or contentious, is a major life transition that could result in substantial wealth distribution changes.
Several estate planning specifics may be overlooked by divorcing couples as they focus on more important issues like child custody and property split. Choosing a trustworthy estate planning lawyer is a crucial step in making sure that your assets are safeguarded in the case of a divorce, and even after your passing.
Many people are under the impression that getting divorced or separated would also separate them from their assets and wealth. However, that’s not always the case.
This blog post examines a few factors in estate planning which you should take into account if you are planning to be separated or divorced from your spouse.
Who Is Listed In Your Will?
One of the core considerations in estate planning is the listing of the beneficiaries. The very first thing you need to check is who is listed on your will. In the majority of the cases, couples who are married to each other specify in their wills that their property will be passed on to the surviving spouse on the death of one spouse and then to their children on the death of the surviving spouse.
In the case of divorce between a couple, the divorcees may not desire their property to be passed to the former spouse. Ensuring that assets are distributed as planned, entails being vigilant about having their official documentation legally examined, updated, and refiled.
Moreover, under the Canadian constitutional estate planning law, the former spouse is left with no option of claiming to the assets in the case of a divorce. In order to make sure that your ex-spouse does not come up with any claims, engage with a knowledgeable practitioner who can fully comprehend your arrangements and make the necessary adjustments.
Who Is Entitled To Your Hard-Earned Money?
First things first, don’t let anything be up in the air. Nobody can inquire about your wishes regarding your possessions after your death.
- While creating an estate plan, make sure to specify beneficiary designations for your life insurance policies, pensions, and other retirement monies.
- For instance, decide whether yours is a “single life” or “joint and survivorship” annuity.
- Understand how and to whom your pension will be paid in the event of your death. More importantly, ensure all pertinent legal paperwork complies with the provisions of your estate plan.
But, What About Your Children?
Children are an important concern for separating or divorcing spouses. In divorce settlements, it is fairly common that one spouse is required to keep a life insurance policy as part of divorce settlements in order to protect the children of the couple in the case of their demise and failure to provide child support.
But, mentioning who will oversee any funds paid out by the insurance is much less common. It is indeed critical to be aware of your options when deciding on the person you want to manage those funds. Yet again, a divorcing spouse can determine that they do not want their ex to have so much power. Making a trust is one legal step you may take to make sure that doesn’t happen.
It is pertinent to note that in the event of a divorce, setting up a trust enables you to maintain the conditions of an initial contract with an insurance provider; however, the trust becomes the beneficiary rather than your children. The advantage of this scenario is that you can designate a trustee to oversee the disbursements.
Our Lawyers Can Guide You!
If you are planning to separate or get divorced, don’t forget that estate planning will vary in that case despite you have already an established estate plan. The attorneys at Ayaz Mehdi Professional Corporation are available to provide up-to-date legal assistance in estate planning matters within the parameters of governing laws.
Disclaimer: Kindly note that sending or receiving information through this site does not establish a solicitor-client relationship. Legal matters are fact-specific, and the law is variably changing. The views expressed and the content provided on this blog are general guidelines and cannot substitute for proper legal advice. Schedule your legal consultation by clicking here: Let’s meet!