Joint wills are legal documents that express the wishes of two individuals, typically spouses, regarding the distribution of their assets upon death. However, the occurrence of a divorce can significantly affect these wills. Below, we explore three diverse examples that illustrate the impact of divorce on joint wills.
In many jurisdictions, a divorce automatically revokes any joint wills made during the marriage. This means that the surviving spouse can no longer rely on the terms of the joint will after a divorce occurs.
In this scenario, Jane and John created a joint will that left all their assets to each other. However, after five years of marriage, they decided to divorce. After the divorce, Jane could no longer assume that her ex-husband would inherit her assets should she pass away. Instead, she needs to create an individual will to specify her new wishes regarding the distribution of her estate.
Notes: It’s important to check state laws regarding divorce and joint wills as outcomes can vary.
Divorce often leads individuals to reassess their beneficiaries in a joint will. In this case, Mark and Lisa, who were married for a decade, created a joint will that named each other as the primary beneficiaries and their children as secondary beneficiaries. After their divorce, Mark wanted to ensure that his new girlfriend, Sarah, would inherit certain assets.
Mark decided to draft a new individual will that designated Sarah as the primary beneficiary for his life insurance policy and other investments. This action ensures that his assets are passed down according to his wishes without being subject to the terms of the old joint will.
Notes: Always ensure that any beneficiary designations on financial accounts are updated after a divorce to reflect current intentions.
Divorce can also lead to a complete overhaul of estate planning strategies. Consider the case of Tom and Rachel, who had established a joint will that included trust provisions for their children. After their divorce, both parties realized that they needed to create new estate plans that reflected their individual goals and financial situations.
Tom decided to set up a revocable living trust to manage his assets and provide for his children while avoiding probate. Rachel, on the other hand, chose to draft a straightforward will that outlined her wishes regarding guardianship for their children and the distribution of her assets. Both individuals recognized that the joint will was no longer applicable, and they needed personalized plans to secure their families’ futures.
Notes: Consulting with an estate planning attorney after a divorce can help ensure that all legal documents accurately reflect one’s current wishes.