Estate Planning After Divorce
Gone are the days where marriage meant a lifetime of togetherness and commitment. Unfortunately today divorce is no longer a dirty word but an ugly reality in India, across all age groups and irrespective of social strata too.
Most often, a divorce entails ugly wars between fighting couples and extended family. Given the scale of bitterness it is imperative to safe guard yourself not just for the present but even for the future.
An aspect of planning that most couples going through divorce overlook, is actually the most important part – Estate Planning, a process that clearly establishes your wish to transfer your self-acquired assets to beneficiaries of your choice in case of death. During the proceedings, untimely death of one of the spouses can only result in various difficulties for the families. Even if the decree has been passed but the respective spouses haven’t made their will up to date or pass away intestate, many claims can arise and bad blood can flow. Therefore it is critical that both parties safeguard and protect their assets.
In India, writing a will even otherwise is still not a common practice, but given the fall outs and long drawn cases that result, it is prudent to plan ahead. It is true that while going through a bitter divorce, death is probably the last thing on your mind, but it is better to be prepared than make your loved ones suffer.
Once divorce is granted it is assumed that the assets/ claims that needed to be split between the couple has already addressed by the appropriate court. Revoking your former spouse from being a beneficiary in any of your newly acquired assets or even the older assets unless decreed by the court, should be your key aim. Your will should be up to date reflecting your current status.
In the day of multiple bank/insurance and other financial accounts it is important to incorporate changes at all touch points. Other changes include revoking any Power of Attorney in favour of your spouse or his/her relative, changing nominations across the spectrum, to asset reallocation.
Whilst making these changes in your will and assets, you must also remember to update family members or people you trust of the changes and probably keep a copy with them too.
However in the midst of the divorce proceeding or just post-divorce, if dealing with issues of Estate Planning is the last thing on your mind, there are many law firms today dealing specifically in such matters. A firm will be able to comprehensibly guide you about various issues such as taxation, incorporate trusts if required, Government duties, registration of wills/ trusts, guide you through legalities to even providing a tamper proof safe vault for your will.
Though divorce is a painful process for couples, a little bit of prudence and planning can go a long way in minimizing further misery to all parties involved.
