FINANCES & ESTATE PLANNING 

Upon divorce, it is important to update your beneficiary designations on financial instruments such as life insurance policies, stocks, bonds and other assets.  You must, however, only make changes that are allowed in your Separation Agreement.  You may be obligated by court order to name your former spouse as a beneficiary for a specific amount of life insurance proceeds.  In addition, your former spouse may be entitled to a portion of retirement benefits accrued while you were married.

Changing beneficiaries is easy.  Here’s what to do:

• IRAs:  Request a beneficiary change form from the financial institution – brokerage, mutual fund company, bank, etc. – where the account is maintained.
  
  
• 401K and pension accounts:  Contact your employer’s (or former employer’s) benefits department.
  
  
• Insurance policies and annuities:  Contact the issuing insurance company to obtain a beneficiary change form.

It’s important to make beneficiary changes in writing.  Once you’ve signed a beneficiary change document, send it to the appropriate institution or company.  Once the change is executed, be sure to get a copy of your policy or account summary for your records. 

Additionally, you should have all other estate planning documents reviewed.  In particular, you’ll have to review your fiduciary designations with the following questions in mind:

• Who is designated as the Trustee of your Trust?  Revocable Living Trusts authorize your designated Successor Trustee to assume responsibility for management and distribution of your assets, which are owned by your Trust.  Your Trustee is to follow the directions you have provided in your Trust documents, including when you want assets distributed, to whom and by what means.  In cases of a divorce, often clients want changes made to these documents to eliminate any involvement with a former spouse.
  
  
• Who is the Executor/Personal Representative of the Will?  Your Will is not immediately revoked get revoked just because you file for divorce.  In Massachusetts, even after your final court appearance, there are waiting periods of up to four months during which you remain legally married to your former spouse.  This means that unless your Separation Agreement provides otherwise, your soon-to-be former spouse may inherit some or all of your assets.  The Will provides for nomination of guardians for your children, the appointment of an executor of your estate, and disposition of your assets upon your death.  Your previous choices preferences with respect to these issues will likely change as you end your marriage.
  
  
• Who is the Agent under a Power of Attorney or Health Care Proxy?  In cases of a durable power of attorney, you specifically designate an individual to access your finances and assets, in case you are unable to do so yourself.  They can write checks, collect rents, sell your house or car, etc.  Do you want a former spouse managing your financial affairs? 

Similarly, a health care proxy empowers someone of your choice to make health-related decisions on your behalf – whether or not to have surgery, decisions relating to treatment, heroics, etc.  Few people realize this as an important part of divorce planning that needs to be addressed.

Use of Experts

Many of our family law cases require technical or specialized knowledge that is often not directly related to the law itself, but nonetheless critical for purposes of advising clients, presenting evidence or assessing risk factors.  Attorney Irwin M. Pollack, The Massachusetts Family Law Group and the Massachusetts Flat-Fee Divorce Attorneys have established relationships with experts in various fields including tax implications, parenting investigation, business valuation, real estate valuation and vocational skills.