Divorce can take a long time, sometimes months and sometimes years. While the paperwork drags on, life doesn’t pause. Bills still need paying and your children still need support.
In our previous article, “Can I Write My Will While My Divorce Is Still Ongoing?”, we explained that it is both legally allowed and advisable to prepare a will even before your divorce is final. But some people still wonder how to actually put that into practice, especially when minor children or jointly owned assets are involved.
Let’s look at a scenario to make it easier to understand.
Ms. A and Mr. B had decided to separate and started divorce proceedings. As often happens, the process was not smooth. Court dates kept getting postponed, documents went back and forth, and nearly a year later, the divorce still had not been finalised.
Ms. A had:
- A few personal bank accounts
- Investments in her own name
- A condominium purchased before the marriage
- Two young children
Her biggest concern was simple:
“If something happens to me before the divorce is final, could Mr. B automatically inherit my assets just because we’re still technically married?”
Unfortunately, the answer could be ‘yes’, unless she took steps to protect herself and her loved ones.
Here’s what she did:
She made a new will
Ms. A’s first step was to prepare a new will. Until the divorce is final, the law still sees her as married. Without a will, her estranged spouse could inherit a big chunk of her estate under the Distribution Act 1958.
In her will, Ms. A:
- Appointed a trusted executor (her sister) instead of Mr. B
- Excluded Mr. B from her personal assets
- Included all her assets in this Will and specified exactly how her assets should be shared among her children and family
This gave her a lot of peace of mind, as it ensured that everything she owned individually would go to the people she wanted, rather than automatically to her estranged spouse.
She Handled Jointly Owned Property Carefully
Ms. A and Mr. B also owned a condominium together. In her will, she addressed only her share of the property and specified how that portion should be distributed. She understood that the final ownership of the property would ultimately be determined by the court as part of the divorce proceedings, so her instructions applied only to the portion legally considered hers. This allowed her to plan responsibly without interfering with the ongoing divorce process, ensuring that her intentions for her share of the property were clear.
She set up a testamentary trust for her children
Ms. A’s kids were under 18. By law, minor beneficiaries can’t manage their inheritance and they would receive everything in a lump sum at 18. Ms. A didn’t want that.
By creating a testamentary trust in her will, she was able to:
- Appoint a trusted trustee / trustee company to manage the assets
- Decide how and when the funds could be used
- Cover long-term needs like education and living expenses
- Avoid her children suddenly receiving a large sum too early
This is something many parents in divorce situations find extremely reassuring.
She updated her EPF and insurance nominations
Finally, Ms. A checked her EPF and insurance nominations and noticed that her spouse was still listed as the nominee. She updated them immediately to make sure her assets would go to the right people. On top of that, she added backup beneficiaries in her will. This way, if her primary nominees were unable to inherit for any reason, the assets would still be distributed according to her wishes. Having a backup plan like this gave her an extra layer of security and peace of mind.
Ms. A’s story shows that even while a divorce is still ongoing, there are practical steps you can take to protect your assets and your loved ones.
Taking action now doesn’t just protect your estate. It also gives you peace of mind, keeps you in control, and ensures that your wishes are respected. You don’t have to wait until the divorce is final to make sure your family is taken care of and your assets are managed properly. By planning ahead, you reduce the risk of disputes and make sure that your loved ones are looked after exactly as you intend.
You may make an appointment with our legal advisor here: https://calendly.com/finex-and-co-legacy-advisory/tea-talk-with-legal-expert
