Your Family, Protected: The Collaborative Approach to Estate Planning and Family Law - Trusts & Estates and Elder Law & Special Needs Planning Newsletter
By: Alec R. Borenstein
Jhanice V. Domingo
Major life events—marriage, divorce, remarriage, or a significant change in wealth—do not occur in isolation. Each of these transitions has immediate and long-term consequences for a family unit that require consideration from both a family law and an estate planning perspective.
Too often, these disciplines are handled separately. A bifurcated approach is not only inefficient, but can also lead to inconsistent documents, missed legal obligations, and costly disputes. A coordinated approach is essential.
Under the laws of New Jersey and New York, family law outcomes directly impact estate planning strategies. Without alignment, even well-drafted documents can fail.
Real-World Consequences of Poor Coordination
We routinely see preventable issues when family law and estate planning are not aligned.
For example:
Outdated Beneficiary Designations: A client finalized a divorce but never updated his or her retirement account beneficiary designation. Upon the client’s death, the account passed to a former spouse—contrary to most state law and estate plan wishes—resulting in potential litigation and significant family conflict.
Unsecured Support Obligations: In another case, a divorce agreement required life insurance to secure alimony. The policy was never properly maintained and not directed into a trust as negotiated in the marital settlement agreement. When the obligor spouse passed away, the surviving spouse had no protection and was forced into litigation against the estate.
Conflicting Documents: We have seen estate plans that directly contradict marital settlement agreements—such as trusts distributing assets in a manner inconsistent with equitable distribution terms—creating exposure for fiduciaries and beneficiaries alike.
Failure to Update Planning Documents: A client initiated a divorce proceeding and unexpectedly became incapacitated while the negotiations were ongoing. Had simple planning documents been prepared, such as a Durable Power of Attorney and Health Care Proxy, that honored the soon to be divorced and now incapacitated spouse’s wishes, the path forward would have been less complicated.
These are but a few examples and not unusual scenarios—they are common outcomes when planning is not coordinated.
The Advantage of a Fully Integrated Legal Team
At Pashman Stein Walder Hayden P.C., our Family Law and Trusts & Estates attorneys work together as a single, coordinated team. This fully integrated approach allows us to:
- Work with our clients to ensure that their wishes are properly documented;
- Structure divorce settlements with estate planning already in mind;
- Ensure that support obligations are properly secured and enforceable;
- Coordinate beneficiary designations, trusts, and insurance as life events occur;
- Address tax implications, including inheritance and estate tax exposure; and
- Identify risks early—before they become disputes or litigation.
This collaboration is critical. Family law decisions often create obligations that must be implemented through estate planning. Without a unified team, those obligations are frequently misunderstood, delayed, or missed entirely.
When You Should Act
You should contact the attorneys at Pashman Stein Walder Hayden P.C., and review your estate plan in coordination with family law counsel if you are:
- Anticipating or going through a divorce or recently divorced;
- Entering into a prenuptial or postnuptial agreement;
- Remarrying or part of a blended family;
- Subject to ongoing alimony or child support obligations; and/or
- Experiencing a significant change in assets, income, and/or business value.
The attorneys at Pashman Stein Walder Hayden P.C. in the Trusts & Estates and Family Law departments function as a cohesive team to ensure your family is fully protected. If you would like to learn more, please feel free to email us and set up a consultation to ensure that your plan is built to protect your family and your assets over the long term.
Learn more about our Trust & Estates, Elder Law & Special Needs Planning and Family Law practices.
* * *
The information contained herein is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to these materials do not create an attorney-client relationship between Pashman Stein Walder Hayden P.C. and/or its attorneys, and the reader of the materials.
