All tagged divorce

How to protect your assets from divorces and creditors: Lessons from 'Big Little Lies'

I have been watching an HBO show called Big Little Lies, which is a fantastic show, but also has some lessons on estate planning. [Spoilers!] In a recent situation this season, a character named Renata (on the left in the photo above) learns that her husband is in trouble for insider trading, and that because of the way they own their assets as a married couple in the state they live in (California), everything they have is at risk and they must declare bankruptcy and sell off everything that the bankruptcy trustee tells them to sell—their home, Renata’s wedding ring, everything. To make matters worse, Renata finds out at the bankruptcy hearing that her husband has been procuring sexual favors from the nanny and promising her additional compensation for her services. This is all a huge blow to Renata, who came from a poor background, worked for everything she built, and is now having everything taken away due to her husband’s actions.

Estate Planning Guidelines for Divorce

When you are facing divorce, estate planning is an important part of that. In a perfect world, a divorcing couple will be able to come to some agreements on guardians and other topics involving the kids. If not, parents should still create their own estate plans to reflect their wishes. 

There are a myriad of estate planning goals a divorcing or divorced person might have: to name people you know and trust to make important decisions for you if you are not able to do so; to protect your assets from being lost to remarriage of either party; to protect your assets from being lost to creditors of your ex-spouse or other factors you have no control over; to name guardians in the event both ex-spouses are incapacitated or die; to ensure that if one parent dies or is incapacitated, that person’s family still has visitation with the children.