After divorce update your estate plan and survivor provisions for assets

A divorce judgment will allocate assets between the spouses. This property division will address all assets owned by either party or both party without regard to the title prior to the divorce.  In many instances the final judgment will allow some or all assets to be allocated to the party who owned the asset prior to divorce.  Many of these assets will have contract terms that contain payable on death clauses.  Typically these payable on death clauses are paid to the surviving spouse. 

After a divorce, each spouse should examine all assets allocated to them and review the payable on death clauses.  In particular, life insurance policies, retirement accounts, pensions, investment accounts, and bank accounts should all be examined.  If the divorce decree requires death designations then there is a specific duty to conform to the requirements of the judgment.  If the decree is silent on death designations then each spouse is free to change the death designations to any person they want.  However, if a person still wants to make their ex-spouse the death beneficiary then extra steps must be taken.

Massachusetts law treats any death designation to an ex-spouse as revoked upon divorce.  This means that if a person wants their ex-spouse to receive death benefits they must take some action, after divorce judgment issues, to reinstate the death benefit.  I recommend that if a person wants their ex-spouse to continue to have death benefits that they state so in a will.  In addition, they should notify the trustee of the asset (life insurance company, brokerage firm, bank, etc.)  that they are ratifying the death benefit designation.  If a person does not write a will after a divorce then they should write their intention in a document that can be signed before a notary public.

If these steps are not taken, then the assets are not likely to be distributed as desired after death.  In addition, there is an excellent chance that litigation will be filed to determine who gets the asset after death.

It is strongly recommended that everybody who gets divorced should consult a lawyer and execute a will after the divorce. 

Has your spouse run away?

An entertainment company is creating a documentary TV series for a cable network about individuals with a significant other (a spouse OR a long-term boyfriend/ girlfriend) who has run away and is no longer in touch (ie: "disappeared" or "gone missing"). The company is looking for people who suffered a victimization of this nature. The show seems to be based on selecting individuals an then using experts from the TV series, including private investigators, to locate the missing spouse or partner. Anyone in this situation who is interested in having their story in the show can contact melissa.casting@gmail.com
Include: Full name, age, phone#, current city& state, spouse's name, number of years married, photo of the two of you together and brief description of when/ how they disappeared.

Of course, people can get divorced even if their spouse has disappeared. The law would not sentence someone to perpetual marriage merely because the spouse chose to disappear. Service of legal process can be accomplished by other methods such as by publication, relatives, or even social media. While a person can get divorced with a missing spouse it doesn't mean that they can recover assets, alimony, or child support. The missing person may have to be located before money can be collected. Experienced family law attorneys know how to locate missing people. While no attorney will have success in all missing person cases, they will be able to find some people. They will also know what legal action to take after a person is located.

Prepare for a divorce—create a household inventory

In most cases, people anticipate a divorce before it happens. While some actions taken before a divorce can receive an adverse reaction from a spouse, creating an inventory should not. Creating an inventory can be helpful in case you suffer an insurance loss such as fire, theft, or flood. An inventory can also be helpful in a divorce.

In a divorce the two spouses will have to divide the household belongings. Sometimes this occurs leisurely and sometimes in a rush. An inventory will make a split easier. If a court issues an order removing one party from the house having an inventory will make it easier for that person to receive a fair distribution of the household assets. If you are dividing items from memory you are likely to forget items that you care about.

Another benefit of having a household inventory is to reduce the potential for items to disappear. After a person who is out of the house takes their initial list of items it is much more difficult to obtain items from the house. That book that you received from your grandmother is likely to be thrown out if you don't retrieve it in the initial group of items. With digital photography you can incorporate photographs into your inventory.  By having a list you can designate items to retrieve later and avoid having them thrown out or sold.

The earlier you start the inventory the better off you are. It is also helpful to consult an experienceddivorce lawyer as early as possible. Both an inventory and a divorce lawyer can help you work through the difficult times created by a divorce.

Problems with trial separations

     Many couples who experience problems in their relationships choose a trial separation in the hope of having some time off and then improving their marriage. It is my experience, as a divorce lawyer, that trial separations lead to divorce. When it comes to separations, absence does not make the heart grow fonder. My experience is that absence makes the heart grow suspicious and jealous.

     The biggest problem in separations seems to be the one year lease. Most couples who separate don't have the luxury of two homes. Typically, one person moves out of the home and rents an apartment. For most people, this means that they sign a one year lease and obligate themselves to pay rent for a year. As a result, the person who moves out thinks that the trial separation will last the full year. During this year, one person remains in the home with the children and the other enjoys the social freedom of independent living. The person in the home lacks the social opportunities available to the other. The natural inclination is to consider the apartment rented for a year as a year long opportunity to enjoy sex with other partners. It doesn't matter if the person commits adultery, the spouse remaining in the home will suspect that adultery occurs on a regular basis. This attitude won't help the couple reconcile.

     When a couple separates, they have to maintain two households instead of one. This will cost more money and put a strain on the finances of the couple. In addition, the couple will talk less about expenditures and there is an opportunity for either or both to spend money in ways that the other spouse would not approve. This lack of financial control can drastically increase the combined debt of the couple which must be addressed in the event of a divorce. Just as assets are divided at the time of divorce, debts must be divided as well. In addition, maintaining two households and increasing the expenses can result in a lower standard of living. The standard of living is one factor in both property division and alimony if a divorce occurs.

     A long term separation allows the other spouse the opportunity to hide assets. The longer the period of separation, the more money can disappear. While one party may be trying to reconcile, the other may be trying to improve their position for the future divorce.

    A separation is the equivalent of treading water. If the parties are trying to reconcile, the separate residence makes it difficult. Yet, as long as they are trying to reconcile, they won't be looking for new relationships. Their life is put on hold.

     If a couple is thinking about separating, they should consider other methods of working on their relationship. They should consider therapy. They should also remember that without intimacy, almost every relationship will fall apart. Many couples consult with divorce lawyers to understand the reality of the cost of divorce and life after divorce. For most couples, separation leads to divorce and not improvement in their relationship.