Divorce brings significant changes, not only to your personal life but also to your estate plan. Depending on the circumstances, many people understandably focus on custody, property division, or support arrangements during the divorce process. However, when the dust settles, updating your estate plan remains one of the most important steps you can take to protect yourself and your loved ones moving forward.

Under Wisconsin law, a divorce effectively revokes any revocable disposition of property or fiduciary appointments in favor of a former spouse or their relatives. But the law does not create new designations in their place. That means unless you take proactive steps to revise your documents, your estate plan may be incomplete or no longer aligned with your wishes.

Here are some key estate planning issues to revisit after a divorce.

1. Update Your Will and Trusts

If your current will or trust leaves assets to your former spouse, or names them as a fiduciary such as personal representative or trustee, those documents should be revised as soon as possible. In Wisconsin, divorce automatically revokes provisions in your will or revocable trust that favor your ex-spouse and their relatives, but it does not create  new designations in their place.

Without updates, you risk leaving assets in your estate to unintended individuals through a residual clause or even under the laws of intestacy. A thorough review with necessary updates will ensure your plan reflects your wishes post-divorce. 

2. Change Your Powers of Attorney

Powers of attorney for finances and health care are especially important to review after a divorce. If your former spouse, or their relatives, are named as agents or alternate agents, those designations are automatically revoked upon divorce.

One of the most difficult and preventable situations is losing capacity without a valid power of attorney in place. Without an updated document, your loved ones may be forced to go through guardianship proceedings just to manage your finances or make health care decisions. Fortunately, updating these documents is a quick step that can make a world of a difference when it matters most.

3. Review Beneficiary Designations

In Wisconsin, divorce automatically revokes beneficiary designations in favor of a former spouse or their relatives on assets such as life insurance policies, retirement accounts or even payable-on-death (P.O.D) bank accounts. Again, these revocations do not appoints a new beneficiary in their place.

 It is very important for divorcees to make new beneficiary designations. Making these quick changes ensures your loved ones avoid a costly battle to get the support you intend to give them.   

Next Steps

Updating your estate plan post-divorce isn’t just about removing your ex, it’s about making sure your wishes are clearly stated, your assets are protected, and your loved ones are cared for in the way you intend.

At Moertl, Wilkins, & Campbell, S.C., we regularly help clients revise their estate plans after divorce. We’ll walk you through each step and create a plan that works for your new chapter.