Divorce: Know Thy Beneficiary
If you’re thinking about getting a divorce, are in the process of getting a divorce, or are already
divorced, then you should keep reading. A divorce can be a very emotional and stressful time;
instead of thinking about how best to protect yourself and your assets, you may spend your
time reminiscing over the love lost or fuming about the reasons prompting the divorce. This is
understandable, and may even be therapeutic, but you also need to think about your financial
well-being. In short, know thy beneficiary.
When you get divorced any beneficiary designations on Life Insurance policies, wills, trusts,
IRAs, as well as a 401(k) or similar document does not automatically change. In fact, the law
usually has no choice but to go by what is listed on the document; so, if your former spouse
survives you, and you failed to remove him or her as the designated beneficiary, they will
receive those benefits – even if you have since remarried. That’s right: your current spouse may
lose the benefits to your former spouse. However, some states have taken steps to rectify this
problem by enacting statutes which automatically revoke funds to a former spouse.
Of course, there are those people who get divorced and still want to provide for their former
spouse, or the terms of their settlement agreement requires that they maintain the former
spouse as a beneficiary. In those instances, and as a general rule of thumb, you will want to re-
designate your former spouse as a beneficiary if that is what you desire.
Experienced estate planning attorneys Port St. Lucie FL of the Robert J. Kulas, P.A. offers estate
planning and business planning resources to residents of Port St. Lucie FL. To learn more about
these free resources, please visit www.kulaslaw.com/ today.