This was a question I got from one of my clients on a Sunday afternoon. First of all, I was taken aback by news of her divorce. Secondly, I was surprised that she only considered nomination of her insurance policies, and not whether her other assets and CPF monies will be inherited by her ex-spouse.
Separation/divorce does not affect an individual’s Will, insurance and CPF nomination. This means that your ex-spouse can still potentially inherit your assets. So upon divorce, it is important to review these. For those who do not have a Will, your assets will be distributed according to Intestate Succession Act, which states that 50% of your assets go to your spouse and 50% to your surviving children, if any. In the event of a common disaster, the children would have deemed to inherit all your assets, but upon their demise, their assets will go to their surviving parent – your ex-spouse!
While divorce may be an emotionally painful process, it is important to review your Estate Plan so that your assets are distributed to deserving beneficiaries. Do have a chat with us if you are facing similar situation.
Disclaimer: All information are for informational purposes only and should not be relied upon as financial advice.