“Divorce is the one human tragedy that reduces everything to cash.” (Rita Mae Brown)
Your will is a legal document that spells out how your assets should be distributed when you pass away. This is all well and good when you’re married and you want to leave everything to each other. But what happens when you get divorced?
The three-month rule
Thankfully, South African law has some built-in protection to help with this. According to the Wills Act, if you die within three months of finalising your divorce and haven’t updated your will, any bequests made to your ex-spouse are automatically deemed revoked – unless you explicitly state otherwise in your will. The law assumes you’d want to dissociate yourself from your ex-spouse.
But here’s the snag: this safeguard only lasts three months after the divorce. Once those three months are up, if you haven’t updated your will, the law assumes you decided to leave your will as is, and your ex will still inherit everything you initially intended. That’s why updating your will is one of the first things you should do after getting divorced.
And what about the kids?
Parents should appoint a replacement guardian for their children in their wills, and revisit their choices if they remain joint guardians after divorce. However, if the surviving parent is still alive and retains guardianship rights, the appointed guardian in the will may not automatically assume guardianship. The court will consider what’s in the best interest of the children in all cases.
Update – or regret it
Your will isn’t the only piece of paperwork you should update after getting divorced. As your financial advisors, we are here to help.
- Pension funds: It may be possible to exclude your ex-spouse as a beneficiary from a pension fund, but it depends on several factors, including the terms of your divorce decree and the specific rules of your pension plan. The best course of action is to contact your pension fund administrator, complete the necessary forms and provide a copy of the divorce decree.
- Insurance policies: You can remove an ex-spouse from your life insurance policy.
- Trusts: If you set up trusts during your marriage, you must advise the trustees and revise the beneficiaries to ensure everything aligns with your post-divorce wishes.
Parting insights
Divorce can be overwhelming, and admin is probably the last thing you want to be doing in the aftermath. But this is your future we’re talking about. Adjusting your will and estate plan ensures your wishes are honoured and your loved ones are cared for. Updating your will after a divorce can prevent potential conflicts and protect the people you care about most – be they children, new partners or other important family members.
If you’ve gone through a divorce, don’t wait! Contact us to make the necessary changes and rest easy knowing that your affairs are in order. We’ve got your back.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
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