Getting Divorced? Get your Estate Plan ASAP!

After 5 years of dating and 10 years of marriage, high-school sweethearts Dick and Jane decide to part ways. They settle for shared custody of their two young kids, and split the equity built in their home, bank and brokerage accounts. Each end up with about $250k in liquid assets. Now in their early 40's, Dick and Jane are thinking about what is next in their journey: raising the kids as divorced parents, adjusting to life being single, and going back to the dating scene.

But equally important is creating an estate plan that reflects their new family circumstance. You see, in case something happens to any of them, like becoming incapacitated, they no longer can count on their now ex-spouse to make decisions of their behalf. And as a single parent of two minors this is suddenly all the more important! Thus, at least they need a power of attorney and healthcare surrogate - and they need them ASAP.

With the assets from the divorce settlement, they should also think about creating a revocable living trust and accompanying pour-over will to prevent their net worth from diluting into other bloodlines. Let me explain: as they move on with their lives, chances are they will enter into relationships with others who also bring children of their own. As they merge into blended families, stepchildren become part of their lives - and beyond. Without proper estate planning, the assets Dick or Jane have been accumulating before entering into their subsequent marriages are exposed to being inherited in part by the step-kids at the expense of their biological children.

Actually, it could be even worse. Let's say Jane dies intestate (neglecting to do any estate plan and passing without a last will and testament or trust). According to Florida law, Jane's second husband, Dave inherits all. Then let's say that over the years Dave and Jane's children become estranged. Dave eventually remarries to a much younger lady, and decides to divide his legacy between his children and the new bride. Jane's kids end up with zilch.

Most of us want to take care of our spouse, our children, and maybe the rest of our family too. But, letting everyone else work out the details after you are gone or incapacitated means chaos, and, sadly, the risk of a family being torn apart. Proper estate planning can alleviate your concerns about your unique family situation, giving you the confidence and peace of mind that your wishes will be carried out. 

Since not all families are alike, you can’t rely on an off-the-shelf estate plan or make assumptions based on other families’ experiences. Work with an experienced estate planning attorney to understand the obstacles and opportunities available to you and your family.

Every family, blended or otherwise, presents its own set of challenges, both personal and legal. We can guide you and your loved ones through the process, discuss your wishes, and help you effectively plan for the future. Call us today at (305) 924-2918 to discuss estate planning for your family, and we will be more than happy to answer any questions or concerns you might have.