Divorce has become common for women in Washington and other states. According to one study, 56 percent of women leave financial planning and major money decisions up to their husbands. Divorce can present overwhelming financial challenges for these women. There are several estate planning mistakes to avoid when going through a divorce.
Estate planning documents may need to be updated during and after a divorce. It is common to leave assets to a spouse, but this may need to change after a divorce. Many people have guardianship plans written down detailing who should take custody of their children if anything happens to them, and these may need to be changed as well.
When going through a divorce, it is important to take into account all assets, including retirement plans. Many people are unaware of all their assets prior to getting divorced. It is a good idea to take a look at every asset and make sure that the appropriate beneficiaries are designated.
An attorney with experience in estate planning may be able to assist individuals who are going through a divorce update their will and create trusts when they may be beneficial. There are many different types of trusts that may be utilized to save money on taxes, secure assets from creditors and help beneficiaries avoid probate court. Many trusts allow the grantor to enjoy the benefit of the property in a trust for the remainder of his or her life.
Many people have not created any type of estate plan. During a divorce, many people realize that they will no longer be able to count on their spouse or spouse’s relatives the way that they thought they would in the future. Making an estate plan or updating a previous one is a good way to create a new plan for the future.