There are various aspects to consider when you are planning to get a divorce. You need to think about your finances and residence outside the marital home. Two individuals can co-parent or one parent gets full legal custody of the children.
The more concerning issue is the power struggle associated with any power of attorney you might have. During divorce contemplation, some people fail to update and plan estate rights and the power of attorney they have established. This could lead to severe consequences regarding your finances and healthcare.
Getting a divorce is a complex process, especially when dividing the assets and responsibilities of taking care of minor children. This article will discuss the issues related to your power of attorney and what measures to take.
Power of Attorney Fundamentals
A durable power of attorney or any other type of POA is legally designated to a family member or close friend, allowing them to make legal decisions on behalf of the one who establishes it.
A power of attorney enables a person to make medical and financial decisions. However, with great power comes great responsibilities. The designated individual needs to be trustworthy and willing to take on these responsibilities.
The person who designates the power of attorney is known as the principal. The person appointed as POA is known as the agent. The principal determines how much the agent will be paid.
As a precautionary measure, married individuals often appoint their spouse as the POA in case anything unexpected happens. During a divorce, it is imperative to revoke this authority.
Importance of Updating POA Rights
Issues arise when the person given the authority to be the POA agent is no longer trustworthy. Such predicaments arise when you are undergoing a divorce and your soon-to-be ex-spouse is the POA.
When a couple undergoes a divorce, some arrangements like a partner’s estate share in a will are automatically nullified. On the other hand, the power of attorney is not automatically revoked or invalidated during divorces in most states.
Your ex-partner will still have the ability to make important financial decisions for you. Occasionally the breakup can be amicable and both parties remain friends. However, it is better to be safe than sorry.
Moreover, you are not sharing your life with that person anymore, and you cannot be entirely sure that they understand your best interests. It is crucial to revoke your ex-spouse as the POA agent and reassign the authority to someone else who can be trusted.
How to Revoke a POA
It is essential to invalidate your POA as soon as you finalize the divorce. This will avert any snags or problems with your partner abusing the POA as you undergo the separation. A POA can be nullified in various ways.
As the first step, prepare a document that states that the power of attorney has been nullified. Ensure that the document is signed by you and persuade your ex-spouse to sign it. The second initiative is to appoint a new reliable person as the POA agent.
The newly assigned agent should have documented evidence specifying that previous POA rights have been revoked. Pay attention to the name of the former POA, the signing date, and the new person appointed as an agent when invalidating the previous authority specifically.
It is also vital to request your ex-spouse to return their POA documentation. After getting the previous POA documents, destroy them so that they cannot be used anymore.
Do not forget to inform all of your financial and healthcare institutions about the updated power of attorney. It is best to hire an attorney to make the process easier. You need a lawyer to prepare the necessary POA documents, including the one invalidating the former agent.
You need to communicate and talk to your ex-spouse about revoking them as the agent. This will give them a heads-up so that they can assess their liabilities for any damages. Do not forget to request them to give back their POA documents, as stated earlier.
You might need to consider a lawyer who specializes in estate planning. You need to divide and organize your assets and estates. Consult with your divorce attorney about the new estate plan. The lawyer will work out all the legalities and should ensure foolproof documentation.
When contacting institutions that have the previous POA files, inform them about the updated documentation and provide them the new ones. Such institutions are usually banks, insurance providers, hospitals or clinics, etc. It is crucial to notify them about the modifications regarding the power of attorney roles.
Potential Divorce Aftermath
Everyone’s situation is different and has unique consequences. Due to the various circumstances, the aftermath of a divorce is unpredictable. Conflicts and disagreements are common, and things do not always work out as you might hope.
Divorce voids the financial and medical decisions of the former partner unless alimony or child support has been court-mandated.
With the right legal aid, you can make this transition run smoother. You will need to gather all financial records and any other official documentation to be well prepared for any legal disputes.
Final Thoughts
Divorce is not easy. Separating from someone you had your whole life planned with is a difficult experience. To make this new beginning less unsavory and smoother, you will want to make sure you have all the necessary documents and the right legal help.
Power of attorney is a vital aspect of any separation and involves a lot of procedures. Apart from being stressful, divorce is also quite expensive and time-consuming.
Having an attorney who has the expertise and can understand your needs makes the complications easier to resolve. It also helps you save time and money.
