The divorce may be final but that doesn’t mean your financial connection to your former spouse has been severed. Chances are, your ex’s name appeared on at least one Connecticut financial document that still needs to be updated. There are a few more things you need to do if you don’t want your ex to have control of your money.
Update beneficiary designations
When you opened your bank account, started your 401(k), or contributed to your IRA for the first time, you assigned a beneficiary. The beneficiary automatically receives your money when you die and does not have to go through probate court to get it. If you still have accounts with your former spouse’s name listed as the beneficiary, update them right away.
Review your estate plan
There’s a good chance your former spouse was named as your power of attorney and your representative on your health care directive. Leaving these outdated estate planning documents in place could cause unnecessary trouble down the road. Instead, work with your attorney to draft new documents and revoke the old ones. Contact your financial institutions and your health care providers to let them know you have revised your estate plan.
Consider a trust
A revocable living trust gives you control over how your assets are handled after you die. If you have children from a previous relationship and minor children with your most recent ex, a trust could be an effective way to ensure all of your children benefit from your hard work.
It’s important to review and update your estate plan after major life events. This gives you a good chance of being satisfied with the plan if you should die or become incapacitated unexpectedly. By working with an attorney who is familiar with your situation, you may be able to avoid some of the most common estate planning mistakes people make after they get divorced.