Estate Planning & Insurance Concerns When You Divorce
If you are getting a divorce from your spouse, you have a lot of planning to do. You will need to name your own beneficiaries, organise your divided assets, and set up your individual estate.
It is important that you meet with a qualified lawyer at Armour Allen Lawyers 08 8231 5755 to discuss the specifics of planning your estate to ensure that your wishes are carried out as you desire. You need to be well versed in the most strategic methods of dividing your joint estate so that you do not end up paying all of the taxes while he or she enjoys the benefits of your assets.
- Married: You do not need to be divorced to have a property settlement. If you have been divorced for more than 12 months and did not apply for a property settlement, there are some circumstances when the Court will grant an extension of time in which to apply for a property settlement.
- De-facto: If you are in a de-facto relationship, you must apply for a property settlement within two years of separation. Married and de-facto: Whether you are married or have been in a de-facto relationship, there are two different ways that property settlements can be recorded.
- Whilst it is recommended that parties have independent legal representation, it is not necessary and whilst one party might engage a lawyer to prepare the documents, it is not absolutely necessary for the other party to have a lawyer. There are various agencies, such as the Legal Services Commission and local Community Legal Centers that may be willing to provide assistance.
- Binding Financial Agreement (BFA): The parties can record the terms of their property settlement. Each party must have legal representation.
When planning your estate after your divorce, I have outlined some important information for you to be aware of. Please keep in mind that divorces lend themselves to new structures for individuals. You will want to meet with one of our qualified lawyers at Armour Allen Lawyers to discuss how to best protect your new estate.
Assigning Your Beneficiary
During your marriage, chances are your spouse was the sole or major beneficiary of your estate. After your divorce, it is important that you designate a new beneficiary on all of your documents and for all of your accounts.
It’s important that you remove the ex-spouse as the beneficiary unless you wish for him or her to remain as your designated beneficiary.
Please note: Once you re-name your beneficiary, it is possible that your ex-spouse will still retain the rights to part of your retirement benefits that you accrued during the time of your marriage. I recommend consulting with our qualified estate planning lawyer to determine just how much of your benefits and estate will be designated to your ex-spouse after your divorce.
Dividing Your Assets
During the course of your divorce, you and your ex-spouse determine how your joint estate will be divided. Take a minute to review a few assets that you will need to divide:
- Appreciated assets, such as mutual funds, and stocks;
- Real estate, including investments, repairs, mortgages and insurances;
- Personal property, such as jewelry, artwork and clothes;
- Retirement plans, such as qualified plans & superannuation, and
- Your home, which can be divided in different ways to meet both parties’ financial needs.
Establishing a Trust
Many people will create a Trust to ensure that a designated Trustee will have control over funds after death.
Divorce is never easy. It can be sometimes an arduous and very long process as both parties work to get their portions of the shared assets. If you’re going through a divorce it is important to speak with a qualified lawyer at Armour Allen Lawyers who can walk you through all of the considerations that you need to be aware of to ensure that you receive the best possible settlement.
When it comes to divorce law and property settlements, Richard Armour is an expert. To find out more about how the legal team can help you call 08 8231 5755 to have a free, no obligation review of your situation.