by Kristen Ishihara and Chris Parker with Ishihara & Parker Law Firm PLLC

Divorce and Estate Planning: What You Need to Know

At Ishihara & Parker Law Firm in Longview, Texas, we frequently help clients navigate complex family and legal transitions. One of the most overlooked yet critical issues is how divorce affects your estate plan. Whether you're considering divorce, in the middle of one, or it's already finalized, your estate planning documents need to reflect your new reality.

Separation Isn’t Legal Status in Texas

Let’s start with the basics: in Texas, you're either married or single. There is no legal recognition of “separation.” So even if you and your spouse are living apart or emotionally disengaged, the law still considers you married—and that matters a great deal when it comes to your estate.

Your Estate Plan Needs to Match Your Marital Status

Your marital status directly impacts what happens to your property and who can make decisions for you in the event of incapacity. Whether you're contemplating divorce, actively going through it, or have finalized the process, these are three different stages—each requiring careful planning.

Without appropriate updates, your estranged or former spouse could remain in control of your finances or health care decisions. Worse, they might still inherit under your existing will or serve as trustee for your children. If that’s not what you want, it’s time to act.

Powers of Attorney: Make a Change Before It’s Too Late

Even happily married couples often choose someone other than their spouse as their agent in financial or medical powers of attorney. That option becomes even more important during times of marital strain.

If you're contemplating divorce and no longer want your spouse making critical decisions on your behalf, you need to revise those powers of attorney now. Texas law gives a spouse priority to make medical decisions in the absence of a medical power of attorney—so if you want someone else to fill that role, it must be in writing.

Additionally, if you’ve already distributed those powers of attorney to banks, doctors, or other institutions, you’ll need to replace them with new documents and notify those parties. It’s also wise to notify your spouse, officially revoking their authority.

You’ve Filed for Divorce—Now What?

Once you've filed for divorce, there's a mandatory 60-day waiting period before the final judgment. Often, divorces take much longer. During that time, you're still legally married—so if something happens to you, your spouse could still inherit or act on your behalf unless you’ve updated your documents.

While you can’t move joint assets or make unilateral financial changes during this time (without approval from your divorce attorney), you can and should update your powers of attorney and your will. You can direct who you want your assets to go to upon your death—even before the divorce is finalized.

Post-Divorce Estate Planning: A New Start

Once the divorce is final, it's time to follow through. The divorce decree will divide property between you and your ex-spouse, but the legal work doesn’t end there. You may need to:

• Record new deeds for real estate now solely in your name
• Open new bank accounts
• Update beneficiaries on retirement accounts and life insurance
• Create a new will or revocable trust

This step is critical, especially if you have minor children. Many clients say, “I want everything to go to my kids.” But naming minors directly as beneficiaries can lead to court involvement and unwanted control by your ex.

Protecting Minor Children: The Right Way

If you leave assets to your minor children directly—such as through a will, life insurance, or retirement account—they can’t legally inherit those funds until they reach adulthood. That means the court will appoint someone to manage the money... and guess who often steps up? Your ex-spouse.

To avoid that, create a trust for your children. You choose a trusted person to manage the money until your children reach an age you’re comfortable with—like 21, 25, or even 30. This ensures the funds are used according to your wishes, and that your ex doesn't have access.

Don’t Make These Common Mistakes

1. Naming Minors as Direct Beneficiaries – Always route funds through a trust.
2. Naming a Trustee as Beneficiary or Owner – This creates legal and financial complications. Use a properly structured trust instead.
3. Forgetting to Update After Divorce – Texas law helps by treating your ex-spouse as predeceased in a will, but not for insurance policies or bank accounts. If your ex is still listed there, they’ll get the money.

What If You Forgot to Update Your Will?

If your will still names your ex as the beneficiary after the divorce, Texas law automatically treats them as having died before you—removing them and their relatives from the will. But don’t rely on the law to “fix” your estate plan. A cleaner, clearer approach is always best. Update your documents so your family isn’t left with uncertainty or legal hurdles.

In Summary

Divorce is emotional and complex—but your estate plan doesn’t have to be. At Ishihara & Parker, we guide our clients through this transition, making sure their legal documents reflect their current life and wishes. If you’re considering divorce, in the middle of it, or picking up the pieces afterward, don’t wait. Your estate plan needs to evolve with you.

Reach out to us to schedule a consultation. Let's ensure your legacy stays in the right hands—no matter what changes life brings.

‍