Monday, September 05, 2011

How Does Divorce Impact My Estate Plan?

In California, a surviving spouse receives preferential treatment when the death of their husband/wife occurs.  Under the law, a surviving spouse is entitled to one-half of the couple’s community property and if there was no will, would also receive a portion of the deceased’s separate property.  But what happens if you die while in the process of a divorce? Does your spouse still inherit that same one-half of the couple's community property? 

A dissolution of marriage in California is not final until at least six months (more realistically one year) after divorce papers are served. Until that six month period is over and a final judgment is given, the spouses are still legally married and each party retains their rights as a surviving spouse if the other were to die.  So yes, a spouse would still inherit that same one-half of the couple's community property and a portion of the deceased's separate property. This means that if you are headed towards a divorce and do not want your spouse to have legal rights to your property in the event of an untimely demise, your estate plan and other documents should be reviewed and altered as early as possible during the divorce proceedings. There are some very specific rules that must be followed, so this should only be done with the help of an attorney.

It is also important to note that a judgment of marital dissolution (divorce) may have an effect on existing wills and other estate planning documents.  Before choosing to ignore the risk of an untimely death consider your personal situation including your age, health, size of your estate, nature of your assets, income, and likelihood that your divorce will be resolved promptly.

 

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