Divorce Can Create Challenges for Your Estate Plan

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For every married couple, divorce is a possibility, although a remote one, hopefully. Divorce can interrupt an individual’s estate plan, retirement plans, or business interests. Here are a few things to keep in mind if you are considering divorce.

Divorce and Wills

During the divorce process, the last thought on anyone’s mind is what would happen if they unexpectedly die or become extremely ill. Most people are surprised to learn that the soon-to-be ex-spouse retains legal authority to make medical decisions for you until the divorce is finalized. Your parents or siblings would need to petition a court to obtain those legal rights.

Additionally, if you die before your divorce is finalized, the divorce action will be dismissed and the executor determinations of your will move in place as part of the action design of your Estate Plan. In this scenario, now your surviving spouse has control over your estate and assets. Updating your Estate Plan immediately following a divorce is crucial, but even more proactively consider addressing these potential issues on the onset of an impending divorce.

Divorce and Business

Another mistake some people make is assuming any business interest or asset they have built on their own while married is theirs solely when they divorce. The general rule in community property states like Texas is that each party owns half the assets accumulated during the marriage. This means your spouse typically owns 50 percent of your business if you used money accrued in the marriage to start the business.

Action Point

At Weldy Law, PLLC, we’ve created business succession plans to address this scenario as well as many others. Our position is to consider all the possibilities and make sure the legacy and financial integrity of our clients remain intact. Death and divorce present obstacles, but Weldy Law, PLLC, is committed to finding workable solutions to these challenges.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.