Divorce often changes more than your marital status. It can also affect who may make financial and medical decisions for you and who may receive your property if something unexpected happens. In Nebraska, some estate planning documents may stay in effect after you file for divorce. Because of this, many people choose to review their plans soon after filing.
How does Nebraska treat estate planning documents during divorce?
While your divorce moves through the court process, your spouse may still have authority under certain healthcare documents unless you update them. In addition, an older will may still leave property to your spouse during the divorce.
Once your divorce becomes final, Nebraska law generally removes provisions in a will that benefit a former spouse. However, those automatic changes may not address every concern. As a result, reviewing your estate plan before the divorce ends may help ensure it reflects your current wishes.
Which estate plan updates may deserve attention?
As your situation changes during divorce, several estate planning documents and financial arrangements may deserve a closer look.
1. Review your financial power of attorney
A financial power-of-attorney allows another person to handle financial matters for you. Under Nebraska law, a spouse’s authority under this type of document generally ends when a divorce case begins unless the document says otherwise. Even so, you may want to consider naming a trusted family member or friend to step into that role if needed.
2. Update your healthcare directives
Healthcare powers-of-attorney and living wills usually remain in effect after you file for divorce. Reviewing these documents may help ensure that someone you trust can make medical and end of life decisions for you if you cannot make them yourself.
3. Create a will that reflects your current wishes
A new will may help clarify your wishes while your divorce remains pending. Although Nebraska law may limit your ability to leave a spouse out of your estate before the divorce becomes final, an updated will may better reflect your current goals.
4. Review beneficiary designations carefully
Beneficiary designations often determine who receives life insurance benefits, retirement accounts and certain other assets. In many cases, these designations take priority over instructions in a will. Before making changes, review any temporary court orders in your case because they may limit what changes you can make during the divorce.
5. Separate post filing income when appropriate
You may want to discuss keeping income earned after filing in a separate account. This step may help you organize your finances during the divorce, provided it complies with any court orders that apply to your case.
Why do beneficiary designations deserve special attention?
Beneficiary designations often play a major role in estate planning because they may override instructions in a will. At the same time, temporary court orders may limit changes while your divorce remains pending. Since every situation is different, reviewing those orders before making updates may help reduce the chance of future disputes.
Keep your estate plan aligned with your goals
An Omaha divorce may raise estate planning issues that many people do not expect. Although Nebraska law provides certain protections after a divorce becomes final, important documents may remain unchanged during the divorce process. Taking time to review your will, powers of attorney, beneficiary designations and financial accounts may help ensure your estate plan reflects your current wishes and circumstances.