What High-Asset Families Can Learn from Russell Knight's Legacy: The Importance of Estate Planning During Divorce

The recent passing of Russell Knight at age 102 serves as a powerful reminder of something I discuss with high-net-worth clients every single day: the intersection of estate planning and divorce proceedings can make or break your family's financial future.

In my 15 years representing affluent Chicago families, I've seen this scenario unfold countless times. A couple is deep in divorce negotiations when suddenly, estate planning realities hit them like a freight train. The good news? When handled properly, this intersection can actually protect both parties and their children.

The Estate Planning Wake-Up Call

Here's what typically happens: You're focused on dividing assets, determining spousal support, and working out custody arrangements. Then someone asks, "What happens if one of you dies before the divorce is final?" Suddenly, you realize your soon-to-be ex-spouse is still your beneficiary on everything from your 401(k) to your life insurance policies.

This isn't just theoretical. I've represented families where exactly this scenario unfolded, creating legal nightmares that lasted years and cost hundreds of thousands in additional fees.

The Four Critical Steps Every High-Asset Divorcing Couple Must Take

1. Update Your Will Immediately

Don't wait until your divorce is finalized. In Illinois, you can create a new will that accounts for your changing circumstances. I always recommend clients work with both their divorce attorney and estate planning attorney simultaneously. Yes, it's an additional expense now, but it's insurance against catastrophic complications later.

2. Address Beneficiary Designations Right Away

Your retirement accounts, life insurance policies, and investment accounts likely still list your spouse as the primary beneficiary. While Illinois law automatically revokes your ex-spouse as beneficiary once your divorce is final, you're vulnerable during the divorce process.

I've seen cases where estranged spouses received windfalls simply because the divorce wasn't yet complete when tragedy struck. Update these designations as part of your divorce strategy, not as an afterthought.

3. Create Interim Financial Protection

High-net-worth individuals often need life insurance to ensure spousal support and child support obligations can be met even if something happens to the paying spouse. This isn't just good planning—Illinois courts can require it.

But here's what many people miss: you need to carefully structure who owns these policies and who the beneficiaries are. Get this wrong, and you might be paying premiums on a policy that benefits someone you no longer want to protect.

4. Plan for Business Succession

If you own a business—and many of my high-asset clients do—your divorce and estate planning must address what happens to your company. This is especially critical if your spouse has been involved in the business or if it represents the majority of your wealth.

I regularly work with business valuation experts and tax attorneys to create structures that protect business continuity while ensuring fair distribution of assets.

The Generational Wealth Protection Strategy

What sets sophisticated families apart is thinking beyond the immediate divorce. They're asking: "How do we protect our children's inheritance? How do we minimize tax implications? How do we ensure our family's wealth survives this transition?"

The answer lies in coordinated planning that treats your divorce as one component of a larger wealth management strategy. This might involve creating trusts, restructuring business ownership, or implementing tax-efficient transfer strategies.

Your Next Steps

If you're going through a high-asset divorce in Chicago, don't compartmentalize your estate planning. The decisions you make today will impact your family for generations.

Start by having an honest conversation with your attorney about your current estate planning documents. Then, work with qualified professionals who understand both divorce law and estate planning to create a comprehensive strategy.

Remember: prominent figures like Russell Knight leave behind legacies because they planned properly. Your divorce doesn't have to derail your family's financial future—but only if you act strategically and immediately.

The families who navigate high-asset divorces successfully are those who think three steps ahead. They understand that protecting their legacy requires more than just dividing assets fairly; it requires planning for every contingency.

Written by Jonathan D. Steele

Chicago divorce attorney with cybersecurity certifications (Security+, CEH, ISC2). Illinois Super Lawyers Rising Star 2016-2025.

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