In my last blog post, I addressed the need for clients to change their Will (or make a Will) after divorce. This blog takes things one step further and addresses another issue-changing your beneficiaries.
At the time of divorce, accounts are divided and each party “knows what they are getting”, so to speak. A common mistake many clients (and lawyers) make after this extremely stressful time in a client’s life is not addressing this issue immediately, leaving unintended beneficiaries on 401(k)’s, IRA’s, life insurance policies, and bank accounts.
Anytime you experience a life event such as divorce, you should carefully review both the primary and contingent beneficiaries on your investments or insurance policies. The results of not making the appropriate changes could be devastating to your loved ones.
So, right after the completion of your divorce, sit down with your lawyer and let him or her advise you on what needs to be done. After all, your loved ones deserve the extra attention to detail!