Estate Planning + Divorce: Why You Should Update Your Trusts, Wills, and Beneficiaries Post-Separation
Divorce and Your Legacy: What Most People Overlook
When going through a divorce, most people focus on dividing property, custody, and support. But few realize that failing to update your estate plan can undo years of financial planning — and even leave your ex-spouse in control of your assets.
At The Wright Legal Team, APC, we help clients safeguard not just their present, but their future. Updating your estate plan after a divorce isn’t just smart — in many cases, it’s legally necessary.
1. Your Old Estate Plan May Still Benefit Your Ex
Many Californians create trusts, wills, and life insurance policies during marriage naming their spouse as a beneficiary or executor.
If those documents aren’t changed after divorce, your ex may still inherit or control key assets, including:
Real estate
Bank or investment accounts
Life insurance proceeds
Retirement benefits (401(k), IRA, pension)
Personal property or business interests
California law (Probate Code §5040) automatically revokes some spousal beneficiary designations after divorce — but not all. Private accounts, old trusts, or retirement plans governed by federal law (like ERISA) may still honor the original designation.
Bottom line: Never assume divorce automatically updates your documents.
2. Wills and Trusts Must Be Revised, Not Just Revoked
A will determines who inherits your property and who administers your estate.
A trust controls how assets are managed and distributed, sometimes during your lifetime.
After divorce, you should:
Create a new will or amend your old one
Amend or restate your living trust
Remove your ex-spouse as trustee, successor trustee, or beneficiary
Appoint new guardians for your children
Reevaluate asset distribution among family members
Failing to do so can result in disputes, probate delays, or unintended inheritance outcomes — especially if you later remarry or have additional children.
3. Update Your Beneficiary Designations
Beneficiary designations override wills. That means even if your new will excludes your ex, if an old life insurance or retirement account still names them as the beneficiary, they’ll get paid first.
Be sure to update:
Life insurance policies
401(k), IRA, or pension accounts
Pay-on-death (POD) or transfer-on-death (TOD) bank accounts
Brokerage and investment accounts
Employee benefits or stock options
This simple step prevents years of confusion and potential litigation later.
4. Don’t Forget Power of Attorney and Health Care Directives
If you executed a Power of Attorney (POA) or Advance Health Care Directive during marriage, your ex-spouse may still legally control your medical or financial decisions if you become incapacitated.
Update immediately:
Financial Power of Attorney (assign a trusted family member or friend)
Medical Power of Attorney (choose someone aligned with your wishes)
HIPAA authorizations
These updates protect your privacy, independence, and decision-making power.
5. Protecting Children and Blended Families
If you share children with your ex-spouse, your estate plan should reflect new custody and guardianship arrangements.
Consider:
Naming a guardian other than your ex if something happens to you
Setting up a trust for minors to manage funds responsibly
Appointing a neutral successor trustee to prevent conflict between families
You can also structure your plan to ensure future spouses or children are fairly provided for — without jeopardizing what’s intended for your kids from a previous relationship.
6. Integrating Estate Planning with Your Divorce Judgment
At The Wright Legal Team, we integrate your Judgment of Dissolution with your updated estate plan so nothing slips through the cracks.
This includes:
Updating property titles and deeds
Coordinating with your financial institutions
Aligning trust asset transfers with your final divorce settlement
Ensuring that post-divorce agreements are fully enforceable under California law
It’s not just about avoiding mistakes — it’s about ensuring complete alignment between your divorce decree and your long-term estate plan.
7. Why Work With a Firm That Understands Both Family & Estate Law
Most family law firms stop at the divorce decree.
At The Wright Legal Team, APC, we go further — helping clients protect their legacy after the case is closed.
Our team understands the overlap between:
Divorce and asset division
Estate and trust updates
Business ownership and succession planning
We ensure your future remains in your control — not in the hands of an outdated document.
Takeaway: Don’t Let Yesterday’s Plans Control Tomorrow’s Life
Your estate plan should reflect your current reality, not your past relationship. Updating your documents after divorce is one of the most important — and overlooked — steps in protecting your family, finances, and peace of mind.
Recently divorced or in the process of separating?
Protect your future by updating your estate plan with The Wright Legal Team, APC.
951-462-2813 | wrightlitigation.com. Book an appointment