Divorce can be a tumultuous experience, often filled with emotional challenges, complex legal proceedings, and difficult personal decisions. Amidst all of this, one critical task that many overlook is updating their estate plan. While it may feel overwhelming, failing to revise important documents such as your will, trust, and beneficiary designations after a divorce can lead to unintended consequences, including giving your ex-spouse control over your assets or health care decisions.

To avoid this, it’s essential to update your estate planning documents as soon as possible after a divorce. These changes ensure that your wishes are honored and that you remain in control of your wealth, health, and other critical matters moving forward. Here are some key steps you should take.

1. Update Your Health Care Proxy

A health care proxy allows you to appoint someone to make medical decisions on your behalf if you become incapacitated. If your ex-spouse is still listed as your health care agent, they could make important decisions about your care, such as whether to place you on life support after an accident. Unless you’re comfortable with this scenario, it’s essential to update your health care proxy and designate someone else as your medical decision-maker.

2. Create a New Power of Attorney

A power of attorney gives someone the legal authority to make financial and legal decisions for you if you’re unable to. Many people designate their spouses for this role, allowing them to manage investments, handle tax filings, or oversee real estate transactions. After a divorce, it’s important to choose a new person to take on this responsibility, especially since most divorced individuals wouldn’t want their ex-spouse making these significant decisions.

3. Revise Your Will

Your will likely includes your spouse as a primary beneficiary or executor, which means they would inherit your assets or manage their distribution. Divorce can alter your priorities, making it necessary to update your will. Whether it’s determining who should care for minor children, how to distribute personal belongings, or ensuring that your assets are passed to the right people, updating your will ensures that your current intentions are reflected.

4. Change Your Beneficiary Designations

Failing to update your beneficiary designations on financial accounts could mean that your ex-spouse receives the proceeds from your life insurance policy, retirement accounts, or other assets instead of your children or other chosen beneficiaries. If you have young children, setting up trusts to hold their inheritances until they are older might also be a smart move. Be sure to review all accounts that have beneficiary designations, including bank accounts, retirement accounts, insurance policies, pensions, and annuities.

Embrace a Fresh Start

Divorce is often a time for new beginnings, and updating your estate plan is a crucial part of that fresh start. While reviewing these documents may not be something you want to tackle during such a challenging time, it helps align your plans with your current life and desires. Updating your estate plan also provides a sense of closure, allowing you to move forward with confidence. Work with your wealth advisor and estate planning team to ensure your documents are updated in a timely manner to reflect your new situation and goals.