After a divorce, there are a variety of important documents that you want to update to best help yourself and those that you love. While it might be difficult to think about how to best update something like your will, neglecting these documents could cause problems for your loved ones in the event that something unfortunate happens to you. This week, we want to talk about a few things you should update after your divorce!
Pursuit of Your Best Self Tip #14: Update Your Will, Power of Attorney (POA), Healthcare Directive, and Beneficiary Accounts.
Updating your will is critical, yet it’s often a forgotten step in the post-divorce process. It is important for a few reasons, which include:
- If you have minors, i.e. kids, you and your spouse should work together to determine who should be the guardian in the unfortunate event that you both pass away at the same time.
- A will directs how your assets are distributed in the event of your death. However, a will alone does not help avoid probate.
- A will is essentially your final words and wishes.
Updating your Power of Attorney (POA) for your finances and healthcare is just as important as maintaining your will. You want to make sure you appoint a person you trust to handle your finances as well as your healthcare decisions in the unfortunate event you become unable to do so. This can be a family member, a friend, or a trusted colleague. Just give it some serious consideration before making your decision. I also advise talking with the person(s) you decide to name as POA(s)!
Updating your beneficiaries should be top on your post-divorce list. Beneficiaries should be listed on your IRAs as well as employer retirement accounts, such as a 401k, 457 plans, and a 403b. (These are called Qualified or tax-deferred accounts.) Not only should you name a primary beneficiary but also a contingent beneficiary. I have seen many estate settlements made much more difficult and cumbersome because beneficiaries were not updated or no contingent beneficiaries were named.
Pursuing Your Best Self
In my book, Unforeseen Exit: When You Find Yourself Facing Divorce & Suddenly Single, I tell my story of navigating an unforeseen divorce. By openly telling my story, I want to provide guidance and support to those who have found themselves in similar circumstances, so they can pursue their best self personally and financially!
For more information on how I can support you as your financial planner, schedule a discovery meeting with me today!
