You just slip out the back, Jack
Make a new plan, Stan
You don’t need to be coy, Roy
Just get yourself free
Hop on the bus, Gus
You don’t need to discuss much
Just drop off the key, Lee
Whether the divorce is a knockdown, drag-out fight to the end or a conscious uncoupling, every divorcing person needs a team.
The leader of that team is the divorce lawyer.
The other teammates are an estate planning lawyer, a financial advisor, insurance brokers, a CPA, and where necessary, perhaps a CDFA, a realtor or mortgage agent qualified to work with divorcing clients, and so many other types of advisors.
The best time to see an estate planning attorney is pre-petition, and my team works with clients at all phases of divorce.
Divorce lawyers focus on asset division, custody, and sometimes, domestic violence. They tell their clients to address insurance, estate planning, and tax issues, but their focus has to be on the pressures of litigation, negotiation with opposing counsel, and the court calendar.
This is where my team comes in. We will work with the divorcing client on an estate plan and so much more.
Interdisciplinary study is my passion, and I am so glad to have a deep bench of professionals to support the divorcing clients who work with us at De Fonte Law.
Why Estate Planning Cannot Wait Until the Divorce is Final: Ex-Spouse Inheritance
California law doesn’t automatically revoke all inheritance rights upon the submission of a divorce petition or even upon divorce. If your client dies before updating their estate plan, their ex could still inherit from them through outdated wills, trusts, or beneficiary designations
- Solution: Work with an estate planning attorney to immediately update powers of attorney, health care directives, wills, trusts, and beneficiary designations upon divorce filing and finalization.
And yes, I know all about the ATRO and nothing can be transferred to the new trust without written instruction form the divorce lawyer.
Who Controls Medical and Financial Decisions?
If your client becomes incapacitated, an estranged spouse could still have legal authority over medical and financial decisions if outdated powers of attorney and healthcare directives remain in place.
- Solution: Ensure clients update powers of attorney and advance healthcare directives to appoint a trusted decision-maker instead of their ex.
What Happens to Minor Children If a Parent Passes?
If a divorced parent dies, guardianship of minor children may default to the surviving parent—even if the deceased parent had concerns about their ex’s fitness as a guardian.
- Solution: Clients should work with an estate planner to nominate guardianship preferences, providing supporting materials that explain why the court should take a long hard look at the surviving parent to determine what is I the best interest of the children.
Life Insurance Oversights: A Costly Mistake
Life insurance is often mandated in divorce settlements, but many agreements fail to specify who owns the policy, who pays premiums, who is the named beneficiary, and whether the other party will receive notices of late payment allowing time to cure any deficiencies.
- Solution: Can the client own the policy over their ex to ensure the ex does not simply stop payments (either willfully or do to an incapacity or financial distress).
Also, if a client remains the policyholder but doesn’t change their beneficiary, their ex-spouse could still receive the payout upon death.
- Solution: Always review and update life insurance policies to ensure they align with the client’s new estate and financial goals.
The Underinsured Primary Residence
Most of my divorcing clients are negotiating ownership of the family home. And time and again I find that the home is not property insured, the client lacks umbrella insurance and the ex lacks umbrella insurance.
Homeowners Insurance: Are Both Parties Covered?
- Solution: Every divorcing person should meet with their insurance broker: is the house sufficient covered, is there enough umbrella insurance, if the home has to be renovated prior to sale is the proper insurance in place to have tradespeople on the property?
The Importance of Umbrella Insurance
High-value assets should always be protected with umbrella insurance. If one spouse remains in the home and gets sued (e.g., for an injury on the property), their former spouse could still be financially liable if their name remains on the deed or mortgage.
- Solution: Ensure clients purchase umbrella policies to cover unexpected liability risks.
Professional Services Every Divorcing Client Needs
As a divorce lawyer, your job isn’t just legal—it’s about setting up your clients for long-term security. To do that, they need the right team in place. Here’s who they should be working with:
- Estate Planning Attorney
- Updates wills, trusts, health care directives, powers of attorney, and guardianship designations.
- Ensures ex-spouses are removed from estate documents.
- Protects children from unintended guardianship situations.
- Financial Advisor
- Reassesses financial goals and investment strategies post-divorce.
- Helps with budgeting, cash flow, and rebuilding wealth.
- Avoids costly financial mistakes.
- Certified Public Accountant (CPA)
- Advises on tax consequences of asset division and spousal support.
- Helps reduce unnecessary tax burdens on transferred assets.
- Ensures divorce settlements are structured tax-efficiently.
- Insurance Advisor
- Ensures life, health, and homeowners’ insurance policies reflect the new reality.
- Helps protect against liability with umbrella policies.
- Prevents uninsured risks that could derail financial security.
- Mortgage Broker
- Assists with refinancing or securing new home loans post-divorce and can advise the divorce lawyer on structuring a settlement to put the client in the best position to get a great mortgage rate.
- Helps clients qualify for independent homeownership.
Strengthen Your Practice by Partnering with an Estate Planner
By working with estate planning professionals, divorce lawyers can ensure their clients’ financial and legal security post-divorce. This collaboration not only protects clients—it also enhances your credibility and reduces future legal disputes.
Want to collaborate? Let’s discuss how we can help your clients navigate divorce with a secure plan in place at De Fonte Law.
Patricia De Fonte | De Fonte Law PC
Estate Planning with Heart®
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