How Should We Manage Our Children’s Inheritance if We Get Divorced?

 Posted on July 25, 2025 in Adult Children and Divorce

Divorce later in life raises questions that younger couples rarely have to consider. One of the most sensitive concerns for older parents is how their separation might affect the inheritance they want to leave for their children. In Illinois, ending a marriage means untangling decades of shared finances and revisiting estate plans to ensure your wealth passes on the way you intended.

For parents, thoughtful planning during and after divorce can help protect family harmony and preserve assets for future generations. Our Geneva, IL grey divorce attorneys can help you manage this important issue, as well as every other aspect of your divorce. 

Will Divorce Affect Our Children’s Inheritance?

Under the Illinois Marriage and Dissolution of Marriage Act, your marital property is subject to equitable distribution during divorce. Unless you take proactive steps, this process can disrupt plans you made to leave certain property or accounts to your children.

Beneficiary designations, wills, and trusts may also be affected. Illinois law automatically revokes provisions in your estate plan that favor your former spouse unless you specifically state otherwise (755 ILCS 5/4-7). Without updates, assets could end up being passed on to others in unintended ways.

Should We Transfer Wealth to Our Children Before Divorce?

Some parents consider transferring assets to their children before filing for divorce to keep them out of the marital estate. While this strategy may seem appealing, it carries risks. Courts in Illinois can scrutinize transfers made shortly before divorce if they appear to be attempts to hide or shield assets. This could lead to a claim of dissipation of marital assets, which may harm your case unless you are both in agreement.

A safer approach is usually to work with an attorney to understand what property qualifies as marital and what is considered separate. Once the divorce is finalized, you can transfer wealth in a way that aligns with your goals without triggering legal complications.

How Can We Update Our Estate Plan During Divorce?

As soon as divorce proceedings begin, review your estate planning documents. Your attorney can help you make interim updates, such as:

• Changing your power of attorney for healthcare and property to someone other than your spouse.

• Naming a different executor or trustee in your will or trust.

• Revising beneficiary designations on life insurance policies, retirement accounts, and pay-on-death bank accounts.

These changes ensure your estranged spouse does not have unintended authority or access during the divorce process. Once the divorce decree is entered, you can revise your estate plan to reflect your new circumstances. For parents who want to leave specific gifts or set conditions on inheritance, tools like revocable living trusts and irrevocable trusts can be highly effective. A trust allows you to control how and when your children receive assets, as well as provide for grandchildren or other beneficiaries. 

Should We Work Together to Protect Our Children’s Inheritance?

Even in divorce, many older couples share the same goal of ensuring their children’s financial security. If you and your spouse are on good terms, you may be able to collaborate on estate planning strategies during your divorce negotiations. This can include agreeing on how to handle jointly owned assets, like family homes or business interests, so they remain available to benefit your children.

Contact a Kane County, IL Divorce Lawyer for Couples Later in Life

Divorce later in life requires careful planning to avoid unintended consequences for your family. At Divorce Over 50 - Goostree Law Group, we help parents in Kane County protect their children’s inheritance and update their estate plans with confidence. Call our Geneva, IL divorce attorney at 630-634-5050 to schedule a free consultation and learn how you can preserve your legacy.