Shannen Doherty's Estate Planning Amid Divorce

Takeaways

• Shannen Doherty’s divorce from Kurt Iswarienko was finalized two days after her death, allowing her to control the distribution of her assets in her estate plan.
• If a divorce is not finalized before one spouse passes away, the surviving spouse may be entitled to an elective share of the deceased spouse’s estate, which can lead to conflicts with other heirs.
• Consulting with an estate planning attorney amid divorce proceedings is crucial to ensure that your estate plan reflects your current wishes and protects your loved ones’ inheritance.

Divorce is a common life event for many Americans. In 2022, data shows that more than 670,000 divorces occurred.

In their estate plans, spouses may have entrusted each other with the right to make decisions for them if they ever became unable to do so themselves. In some states, the law automatically halts an ex-spouse’s appointment as decision-maker when the marriage ends. State law may also automatically disinherit the ex-spouse following a divorce. So, what happens if you die after you file for divorce but before it becomes final?

Actress Shannen Doherty faced this same question. In her case, the divorce was deemed to be finalized before her death.

Doherty’s Life and TV Career

Born in Tennessee in 1971, Doherty is known for her starring roles in numerous hit television shows, including her characters Jenny Wilder in Little House on the Prairie; Brenda Walsh in Beverly Hills, 90210; and Prue Halliwell in Charmed.

She was initially diagnosed with breast cancer in 2015. Although Doherty announced in 2017 that her cancer was in remission, it returned in 2020 and, by 2023, had spread to her brain. She passed away on July 13, 2024, at age 53. Surviving Doherty are her mother, Rosa, and her brother, Sean.

Planning for After Death Amid a Divorce

While Doherty was battling cancer, she was also amid a divorce from her husband of 12 years, photographer Kurt Iswarienko. The divorce proceedings took more than 15 months to conclude.

Ultimately, Doherty filed for an uncontested divorce and signed the necessary paperwork the day before she died. Iswarienko signed the documents on July 13, 2024. A family law judge signed off on the divorce two days after Doherty passed away.

Doherty’s estate was able to retain the couple’s $6 million home in Malibu, California; a Salvador Dali painting; several vehicles; and all earnings from her acting.

In addition, as part of the divorce proceedings, Doherty had filed an income and expense declaration stating that she had $251,000 in the bank; another $1,880,000 in stocks and bonds; and insurance money from a lawsuit over damage done to her California home. She also stated that she had real estate worth $3 million and $134,000 in a pension fund.

In an interview several months before her death, Doherty told E! News about how she had begun selling some of her valuables and, with that money, was traveling with her loved ones. She also acknowledged that, in selling property and other items, she was trying to make things as easy as possible for her mother, with whom she was close.

Doherty’s Estate Plan

Marriage is a legal relationship while you are alive. The passing of one spouse ends the marriage, leaving the other party as the surviving spouse.

Doherty and Ishwarienko were able to finalize their divorce and sign their respective waivers before Doherty passed away. This allowed Doherty to control what would happen to her money and property at her death. Had she passed away before the divorce was recognized as final, things could have looked much different. Iswarienko could have made a claim for her estate, including the home he shared with Doherty.

Although she and Iswarienko were in the midst of divorcing, Doherty likely could not have changed the provisions in her estate plan dictating who would receive her money and property until the divorce became final. Therefore, any money or property that she would have left her soon-to-be ex-spouse under a will, trust, or beneficiary designation would probably still have gone to him.

If Iswarienko had not been included in Doherty’s estate plan, he may have been able to file a claim against her estate for his elective share. This is because marriage, as a legal relationship, provides benefits to the surviving spouse. When one spouse dies, the surviving spouse is entitled to part of the deceased spouse’s estate – an amount that is dependent on state law.

Even if the deceased spouse’s will leaves the surviving spouse assets that amount to less than what they are entitled to, the surviving spouse can claim an elective share. This may result in conflict between the surviving spouse and the deceased person’s other heirs.

Had Doherty not executed a will or trust before her death, she would have died intestate. In Doherty’s home state of California, the intestacy laws (the state’s plan for what happens to a person’s money and property if they die without a will or trust) would have dictated what Iswarienko was entitled to. (Read more about what happens when you die without a will in another article.)

The exact terms of Doherty’s estate plan are currently unknown. This lack of public information may be because Doherty used a trust or beneficiary designations as part of her estate plan. The benefit of both of these estate planning strategies is that the matter stays out of the courts and the public eye.

Consult With an Estate Planning Attorney

No matter what stage you are in life, having an estate plan is important. Working with an estate planning attorney amid divorce proceedings can prove particularly crucial for several reasons. First, an attorney can help you understand how your assets may be divided and ensure that your estate plan reflects your current wishes. They can assist in updating your beneficiary designations, creating or modifying trusts, and addressing any potential tax implications your estate could face.

They can also provide you with guidance on protecting your loved ones' inheritance and ensuring that your assets are distributed according to your intentions. By collaborating with a knowledgeable professional, you can navigate the complexities of divorce while safeguarding your financial future and ensuring your estate plan aligns with your new circumstances. If you have not yet created your estate plan, it is not too late; find an experienced estate planner near you today.

For additional reading on the different aspects of estate planning amid divorce, be sure to check out the following articles:

• Estate Planning During a Divorce: Four Key Considerations
• Does Divorce Affect Social Security Spousal Benefits?
• Estate Planning After Divorce
• Living Trust vs. Irrevocable Trust: What's the Difference?
• 5 Ways to Update Your Estate Plan After a ‘Gray’ Divorce