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Once property division is settled, make sure estate plan correct

On Behalf of | Mar 14, 2019 | Property Division |

During a divorce, it is easy to lose track of details that need to be addressed later. Forgetting to tend to some important housekeeping duties could mean that one is not complying with the property division agreement. Texas residents may benefit from reviewing their estate plans to ensure they are in agreement with a divorce settlement.

One of the first tasks may be to review health care proxy and power of attorney documents. If the former spouse was chosen, then one is advised to make the necessary corrections to ensure that an ex-spouse is not making these critical decisions. In addition, plans that include the welfare of children, such as any wills or trusts, may need revising to prevent a former spouse from accessing funds meant for one’s heirs. In addition, if there are concerns over the fitness of a former spouse to be a guardian of minor children in the event of an untimely death, then those plans should be updated to reflect a suitable guardian.

There may be provisions in a settlement that require a former spouse to maintain life insurance for the ex-spouse. It is important that insurance policies are updated and kept current as dictated by the divorce decree. Furthermore, it may be a stipulation that a spouse is entitled to a share of retirement accounts. It is recommended that paperwork that reflects these required divisions be submitted to the proper institutions in order to comply with the terms of the agreement.

Due to the changes in the alimony laws, it is possible that couples rushed to complete their divorce before the end of 2018. For that reason, small details may have been overlooked that could negatively impact the property division aspect of a divorce agreement. Texas residents who recently divorced, or are preparing to do so, may benefit from consulting with an attorney who can provide guidance during all phases of the settlement process.