Divorce and Death
Divorce is so difficult that people do not want to
think of death while they are going through a
divorce. However, some people die during a
divorce, and all people who divorce will eventually
die.
Death during divorce
If you
die during a divorce, the following will happen:
-
The divorce action will end;
-
Your spouse will inherit
whatever you left your spouse in your will;
-
If you have no will your
spouse will likely inherit all or the majority
of your assets; and
-
All jointly titled property
will automatically become the property of your
spouse.
You can do some estate
planning before or during your divorce that will
limit how much of your property your spouse could
receive in the event you die before the divorce is
final.
Death after divorce
You should plan for yours and your ex-spouse's death
after the divorce, especially if you have children.
You should own a life insurance policy on the life
of your ex-spouse for as long as: a) your
children are minors; b) you are being paid
maintenance; c) joint debts are still outstanding;
d) your spouse owes you settlement money. You
should purchase the policy before the divorce is
final. The face amount should be high enough
to cover your ex-spouse's obligation to you, or to
your creditors.
If your spouse dies while
making support payments, you should know that the
maintenance obligation will cease, but the child
support obligation will not necessarily cease.
A surviving parent also can ask the estate for a
family allowance during the time of the
administration of the estate.
After your divorce is final,
remember to do the following:
-
Change the beneficiaries of
your life insurance;
-
Change the beneficiaries of
your retirement/pension;
-
Change the POD designation on
your accounts, including brokerage accounts; and
-
Re-do your will and other
estate planning.
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