The Impact of Divorce on Estate Plans: What You Need to Know

12 November 2025

Let’s face it—nobody walks down the aisle thinking they’ll be tearing up the marriage certificate down the road. But the truth is, divorce happens. And when it does, it’s not just your heart and bank account that take a hit—your estate plan might silently become a legal mess if you're not careful.

Whether you’re going through a divorce, just finalized it, or supporting a loved one through theirs, understanding how it impacts estate planning is crucial. You might be thinking: “I already changed the locks—what more could there be?” Well, sit tight. We’re about to break it all down in simple English so you don’t wind up leaving everything to your ex by accident.

What Is an Estate Plan Anyway?

Let’s start with the basics. An estate plan isn’t just for billionaires with yachts and private islands. It’s for anyone who wants to control what happens to their assets (money, house, car, grandma’s wedding ring—you name it) after they’re gone or if they become incapacitated.

Your estate plan typically includes:

- A will
- A trust (sometimes)
- Powers of attorney (financial and medical)
- Healthcare directives
- Beneficiary designations on accounts like IRAs, 401(k)s, and life insurance

Got those in place? Great. But if you’ve recently gotten divorced—or are in the process—it’s time for a big ol’ revisit.

How Divorce Impacts Your Estate Planning

Here’s the kicker: Divorce changes more than just your last name. It can completely upend your estate planning assumptions.

Let’s walk through how:

1. Your Will Might Still Favor Your Ex

If your will says “I leave everything to my beloved spouse,” and you forget to change it after a divorce, bam—your ex could legally end up with your estate. Some states automatically revoke these gifts when you divorce, but not all. Wouldn’t you rather be safe than sorry?

Even if your divorce decree says you’re not obligated to leave anything to your ex, you must still change your will. Otherwise, local laws could allow your ex to inherit by default.

2. Beneficiary Designations Don’t Always Update Automatically

Here’s where most people slip up.

You probably named your spouse as the beneficiary of your:

- Life insurance
- Retirement accounts (like IRAs and 401(k)s)
- Pay-on-death bank accounts
- Annuities

Most folks forget these are separate from your will. Yup, even if your will cuts your ex out entirely, if you forget to update your beneficiary forms, guess what? Your ex could still be cashing out your life insurance the day after your funeral.

Cold, right? But real.

3. Powers of Attorney: Would You Trust Your Ex?

Powers of attorney give someone legal authority to make decisions on your behalf—financial or medical—if you can’t do so.

Ask yourself this: after the stress of your divorce, do you truly want your ex deciding whether to sell your house or approve your medical treatment?

Didn’t think so.

Many split couples forget to revoke these documents. Rewrite them ASAP and name someone you trust now—not someone you used to trust.

4. Joint Ownership Can Be Tricky

You and your ex might’ve owned a house together, or maybe shared investment accounts. Depending on how those assets were titled (such as joint tenants with rights of survivorship), your ex might automatically inherit the whole thing if you die—even if you’re divorced!

Dividing assets in the divorce is just step one. You must also update titles and deeds to reflect your new reality.

What to Do With Your Estate Plan During a Divorce

Divorce can feel like you’re drowning in paperwork, but your estate plan deserves a life preserver. Here’s what to do during the process:

Revoke Outdated Documents

This includes:

- Wills
- Trusts
- Powers of attorney
- Advance healthcare directives

Tear ‘em up or legally revoke them. You’ll want a clean slate.

Create Temporary Updates if You Can

Some states limit what you’re allowed to do with legal documents mid-divorce. Still, you should talk to your attorney about creating a temporary power of attorney or healthcare directive so your ex doesn’t have control while you’re still legally married.

Update Guardianship for Kids

If you and your ex have children, this one gets emotional. The surviving parent usually becomes their guardian, but what if your ex isn’t someone you trust?

While you can’t typically prevent them from gaining custody, you can appoint a trusted person as a guardian or trustee for your child’s inheritance to manage the money wisely.

After the Divorce Is Final: Time for a Full Estate Plan Makeover

Once the ink is dry on your divorce papers, it’s time to give your estate plan a complete reboot.

1. Draft a New Will

Start fresh. Choose new beneficiaries, name a new executor, and update your asset distributions.

Want to leave your house to your sister and your vintage guitar collection to your kid? Now’s the time.

2. Reevaluate Your Trusts

If you had a revocable living trust with your ex, that’ll need a revamp—or a replacement altogether.

Creating a new trust can help:

- Avoid probate
- Control how and when your assets are distributed
- Protect assets if you remarry

Trusts aren’t just for the wealthy—they’re for anyone who wants control and privacy.

3. Choose New Powers of Attorney and Healthcare Agents

Pick someone you trust today. That could be a sibling, grown-up child, or a dear friend. The point is, not your ex.

4. Retitle Assets and Accounts

Make sure everything reflects your updated life.

- House deed? Check.
- Car title? Yep.
- Bank accounts? You bet.

It’s a bit tedious, but just like cleaning out the closet after a breakup, it’s necessary.

5. Update Beneficiaries

We can’t stress this enough. Check every single beneficiary designation on all your accounts. Your financial advisor or HR department can usually help you make quick updates.

Special Considerations When Children Are Involved

Having kids adds a whole other layer. Even after divorce, you and your ex often remain legally tied as co-parents. That means when it comes to estate plans, your child’s trust, future guardianship, and inheritance should be handled with care.

Appoint a Guardian Thoughtfully

Think about who will care for your kids if both you and your ex pass away. Choose someone loving, stable, and financially secure.

Use a Trust to Manage Inheritances

Children can’t inherit outright until they turn 18 in most states. If you don’t set up a trust, your ex might be the one managing their inheritance until then. Creating a trust lets you choose the trustee—maybe a sibling or long-time friend—so the money is handled your way.

Letter of Wishes

Though not legally binding, a letter of wishes can guide how you want the trustee to manage things for your kids—like paying for college, medical needs, or even that first car.

What If You Remarry?

Ah, love again! Second (or third) marriages can be a beautiful new chapter—but they also make estate planning more complicated.

Here’s why:

- You may want to provide for your new spouse AND your kids from the first marriage.
- Unclear estate plans can lead to family disputes or even lawsuits.
- In a blended family, your assets might unintentionally go to your new spouse’s kids instead of your own.

Using trusts, prenuptial agreements, and clear legal documents will help keep things fair and drama-free.

Final Thoughts: Estate Planning Isn’t a One-and-Done Deal

Think of your estate plan like your phone’s software—it needs regular updates. Divorce is one of those life events where an update isn’t optional—it’s essential.

So if you’re going through a split, just wrapped one up, or even if it happened a decade ago and you never thought to check your estate plan, don’t delay. Your future self (and your family) will thank you.

Because when it comes to your legacy, it’s better to be intentional than accidental.