The process of getting divorced can be a long and emotional one, and it’s easy to think of reviewing your will as just one more chore on a long to-do list.
But it’s essential to remember that getting divorced is likely to have significant implications on your will and other matters relating to your property and assets.
If you don’t give these issues some serious thought, all the work and cost put into resolving the matrimonial finances could be lost. Here are a few of the most important things to consider:
- Your will
In legal terms, your spouse will be deemed to have died upon pronouncement of decree absolute – the legal document that ends your marriage. This could significantly change who is provided for by your will and it may be that your will needs to be reconsidered. Your ex-spouse could also be the sole executor of your will, so you would need to appoint someone new. It is even more important to review your will in the period between separation and divorce, as prior to decree absolute any gifts will remain valid, and it could be your spouse who is provided for by your estate, rather than your children or other family members.
- Joint tenancies
If you jointly own any property with your spouse, it is important to sever the joint tenancy as soon as possible upon separation – otherwise, regardless of any will, your share in any jointly owned property will pass directly to your spouse.
- Lasting power of attorney
As with wills, if you have appointed your spouse to be your attorney, you should review this as soon as possible. If you became incapacitated prior to decree absolute, your spouse would be appointed as your attorney. And if you became incapacitated after pronouncement of your decree absolute, your spouse would be deemed to have died, so you may be left without anyone to act as attorney.
- Inheritance tax
For inheritance tax (IHT) purposes, you are considered to be married until the pronouncement of decree absolute. The division of assets between you and your spouse is usually IHT neutral, as there is no gift element involved.