How Estate Planning Is Affected by Divorce in Florida

Introduction

Divorce brings many legal and financial changes, but one often-overlooked aspect is how it impacts estate planning. A divorce in Florida can affect wills, trusts, beneficiary designations, and power of attorney documents, making it essential to update these plans to reflect new circumstances. Failing to do so can lead to unintended consequences, such as an ex-spouse inheriting assets or retaining decision-making authority over financial or medical matters.

This guide explains how divorce affects estate planning in Florida and what steps individuals should take to protect their assets and future wishes.

What Happens to a Will After Divorce in Florida?

Under Florida law, divorce automatically revokes any provisions in a will that benefit a former spouse. This means that:

• Any gifts or inheritances designated for the former spouse are legally void.
• If the former spouse was named as the personal representative (executor) of the will, they are automatically removed.
• The rest of the will remains valid, but if the will is not updated, assets may pass to heirs in a way that does not reflect the individual’s current wishes.

To avoid confusion and ensure that assets go to the intended beneficiaries, individuals should create a new will after divorce rather than relying on the automatic revocation rule.

How Divorce Affects Beneficiary Designations

Unlike a will, beneficiary designations on life insurance policies, retirement accounts, and payable-on-death (POD) accounts are not automatically revoked upon divorce in Florida. If an individual fails to update these designations, their ex-spouse could still receive these assets.

To prevent this from happening, individuals should review and update:

• Life insurance policies
• 401(k) and IRA accounts
• Bank accounts with designated beneficiaries
• Investment accounts with transfer-on-death (TOD) designations

Many financial institutions allow account holders to update beneficiaries online or by submitting a simple form.

Revoking or Updating Powers of Attorney and Healthcare Directives

During a marriage, it is common for spouses to grant each other financial power of attorney and medical decision-making authority. However, after a divorce, most individuals no longer want their former spouse to have these rights.

Financial Power of Attorney

• In Florida, divorce automatically revokes a former spouse’s authority if they were named as the agent under a financial power of attorney.
• However, if the document grants power to multiple agents (such as a spouse and another person), the ex-spouse may still have some control unless the document is updated.

Healthcare Surrogate Designation

• If an individual previously named their spouse as their healthcare surrogate (medical power of attorney), they should revoke this designation and appoint a new person to make medical decisions on their behalf.

Updating these documents ensures that a trusted individual, rather than an ex-spouse, will handle financial or medical matters if necessary.

Impact of Divorce on Trusts and Asset Protection

Revocable Living Trusts

• If a married couple created a revocable living trust together, divorce typically severs any benefits or control granted to the former spouse.
• If an individual has a separate revocable trust, they should update it to remove their ex-spouse as a trustee or beneficiary.

Irrevocable Trusts

• Irrevocable trusts are more complicated because they cannot be easily modified.
• If a spouse was named as a beneficiary, they may still retain certain rights unless the trust was designed to change upon divorce.

If an individual has an existing trust, consulting with an estate planning attorney can help determine whether updates are necessary.

Updating Guardianship Designations for Minor Children

If a divorced parent passes away, Florida courts generally grant custody of minor children to the surviving biological parent, even if the deceased parent had primary custody. However, in situations where the surviving parent is unfit or unable to care for the child, a court may consider appointing a legal guardian.

To ensure that children are placed in the right hands if something happens, a divorced parent should:

• Name a preferred legal guardian in their will.
• Consider appointing a financial guardian to manage assets left to the child.
• Communicate their wishes with family members and legal advisors.

While the court has the final say in guardianship matters, having clear documentation can guide the decision-making process.

Key Steps to Take After Divorce to Update Estate Plans

To protect assets and ensure that financial and medical decisions align with post-divorce wishes, individuals should take the following steps:

1. Draft a new will – Remove the ex-spouse and update beneficiary designations.
2. Review and update beneficiary accounts – Change life insurance, retirement accounts, and investment account designations.
3. Revoke and update power of attorney documents – Appoint a new financial and healthcare agent.
4. Reassess trusts – If a revocable trust exists, modify it to reflect new wishes.
5. Update guardianship preferences – If minor children are involved, ensure that a preferred guardian is clearly documented.
6. Consult with an estate planning attorney – Legal guidance can ensure that all necessary changes are made in accordance with Florida law.

Taking these steps as soon as possible after divorce can help avoid unintended consequences and protect financial security.

How an Estate Planning Attorney Can Help

An estate planning attorney can assist with:

• Creating a new will that reflects post-divorce wishes.
• Updating trusts to remove or modify provisions benefiting an ex-spouse.
• Ensuring that beneficiary designations on financial accounts align with updated estate plans.
• Drafting new power of attorney and healthcare surrogate documents.

At Bonderud Law, we help individuals update their estate plans after divorce to protect their financial interests and ensure that their assets go to the right beneficiaries. If you need assistance with post-divorce estate planning, contact us today for a free consultation.

Conclusion

Divorce has a significant impact on estate planning, and failing to update legal documents can lead to unintended financial consequences. Florida law automatically revokes certain provisions for an ex-spouse in a will, but beneficiary designations, trusts, and power of attorney documents must be updated manually.

Taking the time to review and update estate plans after divorce can help individuals safeguard their assets and ensure that their wishes are carried out. Consulting with an estate planning attorney can provide peace of mind and legal protection for the future.