As the end of the year approaches, you may be reflecting on changes you already have had and those that continue to unfold as you start the next chapter of your life. This is also an important time to think about estate planning after divorce. Whether or not you have plans in place yet, speak to your attorney to discuss the specific factors that could be impacting you in the year to come.

At Jersey Coast Family Law, we help people move forward with their lives. While we can offer tips for newly divorced estates, it is up to you to keep your estate planning goals on track. Here are a few steps to take now.

Review and Update Your Estate Plan

Estate updates for divorcees must take into consideration a wide range of factors related to your situation. Update the following to make sure they are accurate both right after your divorce and now, as you move into a new year:

  • Your will
  • Trusts of all types
  • Beneficiary designations 

Be sure each of these reflects your new marital status. It is also wise to remove your former spouse if it is appropriate to do so. If you are unsure if you can do so, or if you are in the middle of filing for divorce, it may be wise to speak to our attorney before you make any changes. We want to ensure you are on the right path with the court.

One of the most important steps you can take right now is to update your power of attorney. If your former spouse was and may still be your power of attorney or health care proxy, reach out to our team to update these to a person that you know will act in your best interests. A power of attorney is a person that can make decisions for you in events where you cannot make those decisions, such as after a car accident occurs. Choose an appropriate person, speak to them about your decision, and then seek out help from our legal team. These are critical estate updates for divorcees.

Consider Tax Implications Before Year-End

One of the steps to take before the year wraps up is to discuss your situation with your tax professional. End-of-year financial planning should take into consideration any changes in your filing status because of your new divorce (depending on when you file for divorce). 

Not only is it important to let the IRS know what changes apply to you with any changes to your deductions or exemptions, but you also need to work with your tax professional to determine if there are any financial decisions you need to make now to reduce your tax obligations in the year to come.

Now is often the time to have a full EOY estate review. With it, you can consider any year-end strategies that may help offset some of your tax obligations. For example, gifting or maximizing your retirement savings could help you lower your overall tax obligations. Make sure you speak to your tax professional about the changes as they apply to your current financial situation since these can have long-term implications on your financial well-being. 

When it comes to divorce and tax planning, you cannot be too careful. The more you do now, the better it could be for you in the years to come.

Plan for Your Children’s Future

Another of the end-of-year financial planning decisions you need to make has to do with your children’s financial future. Consider what types of plans you currently have in place for them. Determine if any of these plans have changed since your divorce. If you were both contributing, for example, to a college fund for your child, that may no longer be occurring after your divorce. Now may be the time to put new efforts into place. 

Aside from that, it is also essential to think about guardianship planning after divorce. No one wants to think about this, but what could happen to your child if something happened to you? By establishing guardianship designations or updating existing ones if they are no longer accurate to your goals, you gain some peace of mind in this process. 

Consider establishing financial provisions for your minor children as well. If you are setting up a trust to help fund any emergency care your family may need if something happens to you, now is the time to put those plans in place. 

You may want to set up or update existing trusts for your children. Trusts can help you with protecting assets during divorce by allowing you to move those assets into the hands of your children now, reducing the risk that your ex-spouse will otherwise gain access to them.

Unsure Where to Get Started?

It is not uncommon for those who are going to divorce not to think about these types of concerns, and often, they may be unsure how to make such big decisions that carry so much weight. Take a few minutes now to set up some time to discuss your financial situation with your attorney. Allow our legal team to offer the guidance and support you need to make decisions.

Remember that with our vast experience helping people to navigate the complexities of family law, we can provide you with insight into all of your options as well as offer guidance on steps you can take now to minimize risks against your assets in the future.

Contact Our Family Law Attorney Now to Learn More

At Jersey Coast Family Law, our legal team is always here by your side to support and guide you in building a strong case. Seek help from family law attorney Abigale Stolfe now to get a better understanding of available strategies that could change the way you plan for your future after your divorce. With offices in Toms River and Red Bank and serving clients throughout New Jersey, we are here to guide you. Call 732-361-4718 today to schedule an appointment.

 

Check out our other blogs: Relocating with Your Child in New Jersey: In-State vs. Out-of-State Moves and What You Need to Know.