Divorce is one of life’s biggest resets. It reshapes your finances, family life and often how you see the future. But there is one area that most people forget to revisit, what happens if you die afterwards.
When you divorce, your will does not automatically disappear. It stays valid right up until your final order, and even while you are separated, your existing will continues to take effect. That means if your spouse is still named in it, they could still inherit until the divorce is finalised.
Once the divorce is complete, things change. Any gift to your former spouse is treated as if they had died before you. Their appointment as an executor also becomes invalid. If you do not update your will, it might leave your estate without a valid executor or pass assets in a way you never intended.
Even if your will still seems to make sense, other parts of your financial life can quietly drift out of alignment too. Here are some of the key areas to check.
Your pension does not form part of your estate, so it will not follow your will. Instead, the trustees look at your nomination form. If your ex-spouse is still named, they could still receive your pension benefits, even after divorce. It is one of the most common, and costly, oversights we see.
Many life assurance policies include named beneficiaries or are written under trust. If those names have not been updated, the proceeds might not go where you expect.
If you own a property as joint tenants, the survivor automatically inherits the whole property. That may no longer be what you want. Changing ownership to tenants in common allows you to decide who receives your share.
If you have remarried or are in a blended family, it can become even more complex. You may want to look after your new partner but still protect assets for your children. A bypass trust can sometimes help. It allows assets to support your partner during their lifetime, while ensuring the capital eventually passes to your children.
Sorting these details is not just legal housekeeping. It is an act of care. It means that what you have worked for goes to the right people, at the right time, for the right reasons.
At The Wealth Coach, we help clients review their wills, pensions and beneficiary plans after major life events like divorce. It is part of achieving true financial wellness, aligning your wealth with your values and intentions, not leaving it to chance.
If you have been through a separation and have not reviewed your will or nominations since, it is worth a conversation.
Get in touch with us https://www.thewealth.coach/contact
Or, if you would like to understand how trusts such as bypass trusts can help blended families, let’s talk.
Nic Round is a Chartered Financial Planner and Chartered Wealth Manager, authorised and regulated by the Financial Conduct Authority.