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Newark Family And Estate Law Blog

After struggling through a challenging divorce process, the last thing you want to do is look at more financial paperwork. Unfortunately, as unsavory as the activity sounds, it is a critical part of ensuring your financial world accurately reflects your new circumstances.

For most, a divorce signals the start of an exciting, independent life. Unfortunately, during your marriage, numerous financial policies were created as a given. Now, post-divorce, it is time for you to thoroughly examine these documents and ensure they are correct, including:

  • Life insurance: Over the course of the marriage, it is likely that your spouse was the default beneficiary to your life insurance policy. After the divorce, however, it is wise to re-evaluate who should receive the benefits of your policy.
  • Health insurance: Most married couples share a health insurance policy. Generally, they are both covered under one spouse’s employer-sponsored policy. After the divorce, it is important to ensure you aren’t paying premiums on an inaccurate policy. This can also mean dental insurance and vision coverage as well.
  • Vehicle insurance: During the marriage, it is likely that both spouses appeared as drivers on all vehicles. Property division during the divorce, however, will likely shift ownership. The insurance policies should correctly reflect who will be driving the car or truck.
  • Homeowners insurance: Like the vehicle insurance, the court will address ownership of the marital home during asset and debt division. It is crucial that the couple consider the home’s insurance policy to make certain the correct people are listed as policy-holders.

It is wise to carefully review your divorce order to ensure you are not changing something you previously agreed to. For example, the division of assets and debt responsibility can also include language regarding various insurance policies. It is crucial that you do not act in haste and remove your ex-spouse from any policies that he or she is legally entitled to.

Estate planning is a critical aspect of planning for the future. Even if documentation is already in place, second marriages cause the need for change.

According to the Pew Research Center, remarrying is on the rise for individuals aged 55 and older. Those within this demographic must be aware of certain estate planning factors. This is especially true if children are already in the mix, thus creating a blended family.

Estate planning and second marriages

Questions about estate planning arise after remarriage. You need to decide which assets are to be separate instead of owned together. Is either of you bringing debt into the marriage? Will there be new debts now that you are a pair in the eyes of the law?

Further, ask yourself if you want to retitle your homes or bank accounts in each of your names. What about current beneficiaries named in your wills? You will want to alter yours so that your ex does not receive anything. Consider starting fresh and creating a brand new one together.

Think about whether you want to continue working with your current financial advisors. It may be time to start fresh with another agent.

Estate planning and blended families

If your current spouse has children, consider their needs. Have you and your partner discussed which are to receive particular assets? If you have children together, how will that change the distribution of valuables?

Many estate planning variables should change after you remarry. Mull over these matters so that everything reflects your current marital situation.