When a person is married, their spouse, along with being a big part of their personal life, also plays a big role in their financial life. Among the situations in which this can have major impacts is when a person suddenly becomes single through either a divorce or a death of their spouse. It makes it so, in addition to potentially being a very emotionally tough situation, becoming single can also be a financially challenging event for a married individual.
This is underscored by a recent Key Private Bank report. The report came up with a list of the top financial challenges that come before female clients. Death or divorce made this list.
Becoming single through death or divorce can have big financial impacts on a wide range of individuals. Many things could put a person at a disadvantage when dealing with these impacts. One is not having prepared for them in advance.
So, making some preparations for what one would do in response to financial challenges if one were to suddenly become single can be important for married individuals. A married individual may also want to give careful thought to what they can do within their estate plan to help put their spouse in a good position to deal with these challenges in the event that they die before their spouse.
In addition to what advanced planning they did, another thing that can have big implications for a person who is dealing with the financial challenges of suddenly becoming single is what kind of planning they do after the death or divorce. This includes what they do with their own estate planning in the wake of this event. Suddenly becoming single and the financial changes it brings can greatly alter a person’s overall goals for estate planning. So, making appropriate updates to their estate plan following such an event can be critical in making sure their estate plan continues to accurately reflect their desires and wishes.
Skilled estate planning attorneys can advise adults in all different stages of life on what estate planning steps they may want to consider given their particular goals.
Source: CNBC, “How to prepare for being 'suddenly single',” Jessica Dickler, Sept. 5, 2017