By Laura Bianchi, Director RLG’s Estate Planning/Asset Protection Department
At least 50% of the people in the United States will experience it – Divorce. You have struggled through the costly and time consuming process, your nerves are frazzled, you’re emotionally drained and the only thing you can think of upon its conclusion is – “Thank goodness its over!” What most people are not aware of, is that it’s not over simply because the decree was issued and your marriage has ended. Most likely you shared assets with your former spouse and even more important, you may share minor children.
What happens to your minor children and your assets should you pass away unexpectedly? In most situations, custody of your minor children will be given to the surviving biological or adoptive parent, however, did you know that without an estate plan, your assets will also be left to the care and control of your former spouse? It’s true! While your children are your heirs under the laws of intestacy, should those children be under the age of 18, all the money, assets, real property, life insurance proceeds and so on intended for your children, will be under the control of your former spouse with no requirements as to its allocation or use.
While this realization have many of your jaws dropping to the floor, let me assure you, there is no reason to panic. By having an estate planning attorney create an effective estate plan that meets your family’s unique and individual needs, you can ensure your children’s financial future is safeguarded, secure and far from the reach of your former spouse, regardless of whether they are minors when you pass away. You have the ability to allocate financial resources for their education, marriage or first house. You have the ability to invest and maintain assets for their benefit and use, while still protecting them from youthful indiscretions, divorce and creditors. You have the ability to ensure that the assets your worked so hard for will be allocated to your children in the manner and time frame you with, without any intervention from your ex-spouse.
Ensure that your former-spouse does not have the ability or authority to administer or use the assets you leave behind for your children.
