Estate planning is an important part of building a plan for the future, and when those plans must change radically, you must consider how to adjust your estate planning priorities. Divorce is certainly a life event that can enormously affect your estate plan. If you face a divorce in California, it is important to find an experienced divorce attorney who can help you navigate this difficult season. However, a divorce attorney often has limited experience with the finer points of estate planning, which can create challenges in the property division portion of a divorce.
When it comes to dividing up marital assets, understanding how choosing one option over another may affect your long-term plans. One of the most common issues that this involves is how to address a home that the couple owns. California real estate is famously expensive, compared to other parts of the country, and this home is often the most significant asset a divorcing couple owns. This means that any change in the ownership could drastically change an estate plan.
In general, a divorcing couple either negotiates terms by which one party keeps the home, or the couple chooses to see the home at some point and fairly divides the proceeds. In either situation, the long-term effects of this agreement may drastically change how you arrange your estate plan for maximum protections and efficiency. While a divorce attorney may understand how to protect your interests, understanding the long-term tax and estate planning implications of choosing one of these options over the other is crucial.
An experienced estate planning lawyer in the property division process can help now, rather than waiting until the divorce finalizes. Professional estate planning counsel ensures that you understand how to protect your long-term interests as you look forward to building a new life in a new season.
Source: Findlaw, “Divorce, Taxes, and Your Estate Plan,” accessed Oct. 27, 2017