Recently gone through a breakup… Why you need to update your Will ASAP?

Have you recently gone through a separation? Dividing your assets is hard enough, sometimes the last thing you have the energy for is updating your will, or it simply falls off the to-do list as there is too much going on right now. If you don’t this can lead to a nightmare once you are gone.

Here is a scenario which can easily occur, this might apply to you or someone you know. Sarah and Mike, got married in 2018 but decided to part ways in December 2022. They reached an agreement recording their separation and the division of their assets, however they never filed for divorce. Unfortunately, you cannot file for divorce until you have been separated for two years in NZ. You might be thinking that’s they reached an agreement, what could go wrong.

Sadly in 2023, Sarah passed away without a will. Sarah did not have any children and both her parents had passed away. According to NZ law, Mike, her estranged spouse, can inherit everything she left behind.

Sarah’s sister Rose, was devastated she had a really close relationship with her sister and knew this was not what she wanted. Rose knew Sarah and Mike had separated and divided their assets; Rose supported Sarah through the whole process. Rose was adamant that Mike should not receive anything.

It then comes down to a question of law, can you give up your right to inherit? Mike was simply receiving as he was entitled to do so under the law as he was still technically Sarah’s husband by law.

But can you really give up your right to inherit? It's a tricky question, and the Courts had to weigh in. While they did say it was possible, there certain requirements which had to be met. In Sarah and Mike’s situation these were not meant, which meant all of Sarah’s assets went to her ex-husband and not her sister Rose as she would have intended.

It's a messy situation that could've been easily avoided. If only Sarah had made a new will when they split, leaving her assets to Rose, it would have saved tens of thousands in legal fees and ensured Sarah’s assets were left with her sister Rose not her ex-husband.

So, if you're in the midst of a breakup or know someone that is, listen up: Get a will sorted ASAP! It's the best way to ensure your assets go where you want them to, saving you and your loved ones a world of trouble down the line.