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Estate Planning

Estate planning musts during a divorce in the UK

A divorce can be a difficult and stressful time, and it's important to make sure that your estate is properly planned for.

calendar_month 16 May 23

schedule 3 min read


A divorce can be a difficult and stressful time, and it’s important to make sure that your estate is properly planned for. Here are some key things to consider in relation to inheritance and divorce:

Estate Planning Prior to Divorce

You ought to consider both the inheritance you may receive during divorce and the inheritance you are to leave should you die before matters are concluded.

While you are still married – even if separated, but not divorced – your spouse will have a claim to your estate. Any Will you have in place will be valid as will any life insurance (inc. death in service) or pension nominations. If you do not have a Will, then your spouse will be entitled to some or all of your estate under the rules of intestacy.

If you do not wish for your spouse to inherit more than the minimal amount possible, you should make changes to your Will and pension and life insurance nominations as soon as possible. Whilst it will not prevent your spouse from having a valid claim against your estate, the amount which ultimately passes to them will be a much lower amount than would be the case otherwise.

Additionally, you should encourage the family members from whom you expect to receive an inheritance to redirect your share of their estate into a discretionary trust so that you do not directly come into funds before the financial arrangements are agreed. Coming into funds during this time will likely increase the amount passing to your spouse on divorce.

Estate Planning Post-Divorce

Unlike marriage, divorce will not revoke a prior Will and so any existing arrangements will remain valid. If your ex-spouse is named in the Will, they will be treated as having died before you. This means they will not stand to inherit, nor will they be able to take an appointment as trustee etc.

In the absence of a Will, your estate will pass in accordance with the rules of intestacy. This is often not ideal and so a new Will reflecting your new circumstances is advisable. 

There are scenarios where your ex-spouse will still have a valid claim against your estate even after divorce, and so, it is important to make sure that your planning accurately reflects your wishes. If you have any questions about Estate Planning, you should seek professional advice.

Conclusion

Estate Planning is an important part of any divorce. By taking the time to plan your estate at the earliest opportunity, you can ensure that your assets are distributed according to your wishes. If you have any questions about Estate Planning, you should seek professional advice.

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