02 Apr Why Updating Your Will Upon Divorce is Crucial

Posted at 16:03h in News & Insights by

Divorce is a major life event that impacts many aspects of your personal and financial affairs, including your estate plan. One crucial but often overlooked step after divorce is updating your will. Failing to do so can lead to unintended consequences, including your ex-spouse inheriting your assets or having control over key decisions after your passing.

What Happens to Your Will After Divorce in British Columbia?

In British Columbia, the Wills, Estates and Succession Act (WESA) governs what happens to a will upon divorce. Under Section 56 of WESA, a divorce automatically revokes any gifts to a former spouse and their appointment as executor unless your will explicitly states otherwise. However, while this law provides some protection, relying on it without updating your will can create significant legal and practical issues.

 

Key Reasons to Update Your Will After Divorce

  1. Your Ex-Spouse May Still Be Involved in Your Estate: Even though divorce revokes their entitlement, your will may still name your ex-spouse in other capacities. For example:
  • If your ex was named as your executor, their appointment is revoked, but your will may not name an alternate. This could leave your estate in limbo until the court appoints someone.
  • If your will names your ex-spouse’s family members (such as in-laws) as beneficiaries or executors, their roles may still be valid.

 

  1. Protecting Your Children’s Inheritance: If you have children, updating your will ensures that their inheritance is properly structured. Without an updated will:
  • Your ex-spouse could still manage assets left to your children, particularly if they are minors.
  • A new spouse or blended family situation could complicate inheritance rights.
  • If your estate plan does not clearly address your children’s inheritance, they may receive less than you intended.

 

  1. Avoiding an Intestacy Situation: If your will is outdated or unclear, parts of your estate may be distributed according to intestacy laws rather than your wishes. This can lead to unnecessary legal battles, delays, and costs for your loved ones.

 

  1. Ensuring New Relationships Are Recognized: If you enter a new relationship after divorce, your updated will can reflect your new partner’s role in your estate. Without an update:
  • Your new partner may not have any legal right to your estate, even if you intend for them to inherit.
  • If you live in a common-law relationship for at least two years, your partner may gain inheritance rights under WESA—potentially leading to disputes if your will is not clear.

 

  1. Updating Powers of Attorney and Beneficiary Designations: Your will is not the only document that should be updated post-divorce. Other important updates include:
  • Representation Agreement (commonly referred to as a Power of Attorney): If your ex-spouse was named to manage your financial or health decisions, this should be changed.
  • Beneficiary Designations: Life insurance policies, RRSPs, pensions, and other financial accounts may still list your ex-spouse as a beneficiary, which could override your updated will.

 

When Should You Update Your Will?

Ideally, you should review and update your will:

  • Immediately after separation to ensure interim arrangements align with your wishes.
  • Upon finalizing your divorce to reflect your new legal and financial situation.
  • If you remarry or enter a new relationship, as a new marriage can revoke a previous will unless specified otherwise.

Updating your will after a divorce ensures that your estate is handled according to your wishes and protects your loved ones from unnecessary legal complications. If you need assistance updating your will after divorce, contact the lawyers at YSM Family Law to ensure your estate plan reflects your current circumstances and intentions.