Effect of Divorce on my Will and Power of Attorney

Divorce brings many changes to your life, including significant impacts on your estate planning documents. Understanding how divorce affects your will and power of attorney is crucial for protecting your interests and ensuring your wishes are properly documented.

Power of Attorney Changes Upon Divorce

One of the most immediate impacts of divorce is on your power of attorney documents. In Texas, when you grant someone power of attorney, you're giving them legal authority to act on your behalf in financial, legal, or medical matters. However, divorce automatically affects these arrangements.

According to Texas law, power of attorney granted to a spouse automatically terminates upon divorce, unless the document explicitly states otherwise. As stated in the Texas Estates Code:

"Unless otherwise expressly provided by the durable power of attorney, if, after execution of a durable power of attorney, the principal is divorced from the person designated as attorney-in-fact or agent, the designation is revoked."

This means that if you had granted your former spouse power of attorney, that authority ends automatically when your divorce is finalized. This is an important protection to prevent ex-spouses from continuing to make financial or legal decisions on your behalf.

Impact on Your Will

Divorce also has significant implications for your will. Texas law provides automatic protections that revoke certain provisions in your will that benefit your former spouse. Specifically, divorce automatically revokes:

• Any provision that designates your former spouse as a beneficiary
• The appointment of your former spouse as executor
• The appointment of your former spouse as trustee
• Any power of appointment granted to your former spouse

However, it's important to note that these automatic revocations have limitations. They don't affect all estate planning documents, and they may not align with your current wishes for asset distribution.

What You Need to Do After Divorce

While Texas law provides some automatic protections, it's essential to take proactive steps to update your estate planning documents after divorce:

1. Create New Power of Attorney Documents

Since your previous power of attorney to your spouse is now revoked, you'll need to execute new documents naming someone you trust to handle your affairs if you become incapacitated.

2. Update Your Will

While divorce revokes certain provisions, you should create a new will that clearly reflects your current wishes for asset distribution and names appropriate executors and guardians.

3. Review Beneficiary Designations

Check and update beneficiary designations on life insurance policies, retirement accounts, bank accounts, and other financial assets. These designations are typically not automatically changed by divorce and must be updated separately.

4. Consider Trust Documents

If you have trusts, review these documents carefully as they may not be affected by the automatic revocation rules that apply to wills.

The Importance of Prompt Action

Don't delay in updating your estate planning documents after divorce. During the period between your divorce and updating your documents, you may have gaps in coverage that could leave your affairs unmanaged if you become incapacitated, or your assets might not be distributed according to your wishes if something happens to you.

Additionally, if you have minor children, updating your estate planning documents is crucial for ensuring appropriate guardianship arrangements are in place.

Professional Guidance is Essential

Estate planning after divorce involves complex legal considerations that vary based on your specific circumstances. Working with an experienced estate planning attorney ensures that your documents are properly drafted and that all necessary updates are made.

At Regan Law Firm, PLLC, we help clients navigate the estate planning implications of major life changes, including divorce. We can review your current documents, explain how divorce has affected them, and help you create new documents that protect your interests and reflect your current wishes.