When your marriage ends, a lot of things change. In addition to negotiating property division and a child custody arrangement with your spouse, you need to prepare for your new future by updating your estate plan and practicing financial habits that will set you up for success. In this blog, we’ll share some tips and recommendations that will get you off to a great start.
Update Your Will
In Ohio, divorce will automatically alter many of your estate planning arrangements. If your spouse is named as a beneficiary in your will, their inheritance rights are automatically revoked. You should update the will to address the disposition of assets that would ordinarily have gone to your spouse. If there is any reason why you want them to remain a beneficiary, an Ohio estate planning attorney will advise you on how to arrange it.
Change Your Life Insurance Beneficiaries
This is one change you should make before proceedings begin. In Ohio, when a person files for divorce, the court issues an order that prohibits either spouse from changing beneficiaries on their life insurance policy until the divorce is finalized. This can create an issue because if you pass away unexpectedly before the decree is issued, your spouse would deceive the death benefit on your life insurance policy. To avoid this outcome, you should change your beneficiary designations before you file for divorce.
Update Your Power of Attorney Designations
If your estate plan includes power of attorney designations that name your spouse as your agent, their authority will be revoked as soon as the action for divorce is filed. You don’t have to worry about them making decisions on your behalf should you become incapacitated during the proceedings, which is a good thing. What isn’t good is that you no longer have someone who can make medical or financial decisions for you if needed, but your estate planning attorney can help you name another trusted party as your agent.
Update Your Guardianship Designation Forms
Ohio Revised Code 2111.121 allows you to nominate a guardian of your estate if you become legally incompetent. If you’ve nominated your spouse, be sure to update your guardianship designation forms to name someone else.
Work on Your Credit
When you’re living in a one-income household, a good credit rating will make it easier to refinance your home and get a favorable interest rate on credit cards and loans. If you’ve never had credit in your name before (which can happen if you’ve been a stay-at-home parent for years), apply for products that are intended to build your credit rating.
Contact an Ohio Estate Planning Attorney Today
After divorce, your life changes, and so should your estate plan. Attorney Charles Tyler, Sr. will help you go over your beneficiary designations and update your plan so that it reflects your new circumstances and goals. To learn more about how we can help, call us today at 330-665-0910.