By Brooks J. Hollister, J.D.
This article is the last in a three-part series regarding estate planning during and following divorce. The previous two articles discussed updating your estate plan during divorce and the necessity of updating your estate plan once your divorce is final. Both articles can be found at www.carnaclaw.com/news-and-events.
When it comes to remarrying and blending a family, it’s important to consider the legal aspects of protecting your assets. Correctly navigating the process to ensure your assets are safeguarded is a critical first step.
One of the first steps in protecting your assets when remarrying is to have open and honest conversations with your new spouse. It is crucial to discuss your financial situation, including any assets, debts or liabilities you may have. This will help both of you understand each other’s financial standing and make informed decisions moving forward.
Next, you may want to consider a prenuptial agreement. While it may not be the most romantic point of conversation, a prenuptial agreement can provide clarity and protection for both parties in the event of a divorce or separation. This legal document outlines how assets and debts will be divided and can also address issues such as spousal support and child custody. Consulting with an estate planning or family law attorney is highly recommended when drafting a prenuptial agreement as they can provide guidance and ensure that the agreement is legally binding.
Updating your estate planning documents is also a critical consideration. This includes your will, trust, Advance Health Care Directive, and any power of attorney documents. Upon remarriage, it is recommended that you revisit your estate plan to confirm that your assets are set up to be distributed in the way you want, in a manner that protects both children of the current marriage, and children of any prior marriages. Additionally, you might consider naming your new spouse as your agent under an Advance Health Care Directive. Consulting with an estate planning attorney is highly recommended to ensure that your documents are legally sound and reflect your wishes.
Another important aspect of protecting your assets when remarrying is to consider how your assets are titled. Joint ownership of assets can have implications in the event of a divorce or separation. It’s important to understand the different types of ownership, such as joint tenancy and tenancy in common, and how they can impact the distribution of assets. Consulting with a real estate attorney or financial advisor can provide valuable insights into the best way to title your assets to protect your interests.
Furthermore, it is important to review and update your insurance policies. This includes homeowner’s insurance, life insurance, and any other policies that you may have. When blending a family, it’s important to ensure that your insurance coverage adequately protects your assets and those of your loved ones. Reviewing your policies with an attorney who specializes in insurance coverage, or an insurance agent, can help identify any gaps in coverage and make necessary adjustments.
Lastly, communication and transparency are key when it comes to protecting your assets in a blended family. It’s important to have open and honest conversations with your new spouse about your financial situation and expectations. This can help prevent misunderstandings and conflicts down the line.
Protecting your assets when remarrying and blending a family requires careful consideration and planning. By considering a prenuptial agreement, updating your estate planning documents, and reviewing your insurance policies, you can ensure that your assets are legally protected. . Consulting with professionals such as estate planning attorneys, family law attorneys, real estate attorneys, financial advisors, and insurance agents can provide valuable guidance throughout this process. Remember, proactive planning is key to safeguarding your assets and ensuring a smooth transition into your new blended family.
Brooks J. Hollister is an attorney at Carmel & Naccasha specializing in wills, trusts & estate planning as well as corporate and business transactions. If you have any questions about this article, or for further questions you may have regarding estate planning, please contact attorney Brooks Hollister at bhollister@carnaclaw.com or (805) 546-8785.
About Carmel & Naccasha
Founded in 2004, Carmel & Naccasha has offices in San Luis Obispo and Paso Robles. The firm’s lawyers focus their practice and provide exemplary client services in the areas of business transactions, real property, land use, commercial and employment litigation, trusts and estate planning, municipal law, and insurance coverage. For more information about Carmel & Naccasha, visit the website at www.carnaclaw.com
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