divorce

Five Critical Estate Planning Steps to Take After Your Divorce

Based on research provided by Legal Templates, there has been a 34% increase in divorce filings since the COVID-19 pandemic began. People navigating the divorce process understandably are faced with many issues ranging from how children will be impacted by the end of the marriage to where both spouses will live after the divorce is finalized. As a result, issues involving estate planning often take a back seat. If your divorce involves the division of assets, however, it is critical to take some important steps to plan for your future. Update Your Automobile and Homeowners Insurance One of the most tedious yet critical parts of managing assets after a divorce is to make sure that your various insurance policies are properly updated. This includes updating both your homeowners and motor vehicle policy information. This way you avoid incurring additional liability in relation to any accidents involving your former spouse. Revise Your Health Insurance Policy If you previously had health insurance with your spouse, you will now likely need to obtain your own policy. You might decide to temporarily utilize the Consolidated Omnibus Budget Reconciliation Act (COBRA) to stay on your former spouse’s insurance policy. In most cases, however, it pays [...]

2020-11-12T01:16:23+00:00Tags: , |

Estate Planning After Divorce

Changes in tax law that were passed at the end of 2017 resulted in a large number of people attempting to finalize their divorces before these laws became effective at the beginning of January, 2019. One substantial change is that under these new tax laws, alimony is no longer deductible by the payor and is no longer taxable for the receiver. These changes have had a substantial impact on both sides of alimony payments following a divorce. There are also, however, a number of other changes that people performing estate planning following a divorce should consider. The following reviews some of the most important changes in the law that will impact your estate planning and your divorce. Updating Health Care Power of Attorney A healthcare power of attorney document allows a person to appoint another person to make healthcare decisions for him or her in case of a coma or other incapacity. If you want to avoid having your former spouse make these types of decisions on your behalf, you need to accurately update your estate planning documents to reflect these changes. You should make sure that you still have a power of attorney document, however. In many cases, people [...]

2019-02-08T14:36:03+00:00Tags: , , |

Bankruptcy and Divorce

Divorce is almost always an emotionally challenging process. Many people discover that every aspect of their lives are impacted by divorce more than they ever would have anticipated. If you and your former spouse have decided that divorce is your best option, it is likely that your finances will be affected, and sometimes, bankruptcy becomes a necessity for one or both spouses. Navigating bankruptcy can complicate the divorce process, however. The following will review some important things to consider if you have facing both bankruptcy and divorce. Do Not Simultaneously File for Divorce and Bankruptcy It is often best to not proceed through divorce and bankruptcy at the same time. After filing for bankruptcy, an “automatic stay” is placed on a person’s account, which prevents creditor harassment and freezes a person’s assets and property. If the two overlap, an automatic stay will be placed on a person’s assets and will make it impossible for the divorce court to divide assets. While it is often best to not file for both bankruptcy and divorce at the same time, a person should carefully choose which process to navigate first. If a marriage ends and the former spouses are still friendly with one [...]

2019-02-02T17:22:50+00:00Tags: , |