As a general rule, most if not all of your ex-spouse’s rights in and to your property and assets are terminated upon becoming divorced. However, in addition to certain limited exceptions to that rule, updating estate planning documents is good practice.

Changing the ownership of your property, bank and investment accounts, as well as beneficiary designations, will clarify your intentions for you and your family should you become incapacitated and upon your death, and avoid having your ex-spouse taking advantage of the situation if something should happen to you.

  • Power of attorney – If you are incapacitated, your ex-spouse does not have a legal right to handle your financial affairs or medical decisions, but you should update your financial power of attorney and healthcare documents to designate a person you trust for both financial and healthcare decisions. This ensures the parties making decisions for you are those you currently prefer.
  • Will/Trust – In most states, any provision in wills or a revocable trust that benefits a former spouse is automatically revoked upon divorce. However, it is still important to create a new will and update your revocable trust to ensure your current wishes are reflected. Update the executor and personal representative to someone other than your former spouse, and consider naming a new trustee if your trust documents previously named your ex-spouse. This helps ensure your estate planning side is properly managed after the end of your marriage.
  • Trust for Children – A trust can be used to protect assets for your minor children, and you may want to appoint a trustee and consider other beneficiaries or parties who will benefit from the trust. Trusts can also be structured to address child support and any concerns about guardianship, ensuring your children’s inheritance is managed according to your wishes.
  • Your Parent’s Estate Documents – Their documents might be relevant to you. If your parent(s) are elderly, in poor health and/or have already died and may leave money or property for you, it may impact you and your family now or in the future. If you are recently divorced, review any inheritance provision to ensure it aligns with your new circumstances.
  • Deed for Real Estate – The most recently recorded deed(s) for real property should be reviewed. Determine if there have been other deeds signed but not recorded, and destroy the original(s). Make sure the owner listed on the deed reflects your current situation.
  • Business Agreements – including buy-sell agreements, should be reviewed. Your obligations, or your ex-spouse’s rights, should be identified and if appropriate nullified by signing resolutions and other legal instruments. Original stock certificates should be secured, and voided if appropriate.
  • Beneficiary Designations – for retirement plans and life insurance should be reviewed and updated. Your ex-spouse may need to sign off on certain retirement plan beneficiary designations. If your children are minors or subject to your ex-spouse’s influence, naming them as beneficiary may give your ex-spouse indirect influence over the money. Consider a Trust for your children. Also, update beneficiary designations on other accounts, such as Pay on Death accounts, and review all beneficiary designations to ensure they benefit the intended parties.
  • Joint Bank and Investment Accounts – Your ex-spouse should be removed from any joint accounts, and be sure to double check for “Transfer on Death” (TOD) designations which are sometimes used to transfer accounts to heirs upon your death (your spouse may be on the TOD). Update the owner on all accounts and review any living trust or revocable trusts that may list your ex-spouse as a trustee or beneficiary.
  • Life Insurance – If your spouse is required to maintain a life insurance policy for you, be sure you receive directly from the life insurance company duplicate notices and that you regularly confirm that no changes are made to the policy or beneficiary designations. Review the provision in your divorce judgment that may require maintaining a policy for child support or other obligations.
  • Safe Deposit Box – Make sure your ex-spouse does not have access to it.
  • Burial Plots – Your ex-spouse should relinquish rights in burial plots or funeral contracts.

Other considerations: After a divorce, review all estate planning documents to ensure they reflect your current wishes, update trustees and executors, and consider the estate planning side of post-divorce life. This will help protect assets, ensure the right parties and other beneficiaries are included, and address any tax or legal implications.

If you have questions concerning the steps needed to protect your estate prior to or after entry of your Judgment of Divorce, any of our ADAM attorneys would be happy to talk to you or refer you to an estate planning specialist. If you are recently divorced or have concerns about how your documents reflect your current wishes, contact an estate planning attorney to discuss how to protect assets and update your estate plan.

About ADAM (American Divorce Association for Men)

The American Divorce Association for Men (ADAM) is a group of highly qualified attorneys who advocate for men’s rights in divorce, child custody and parenting time, paternity, support, property settlement, post judgment modifications, and other family law matters.

Since 1988, ADAM has been aggressive, diligent, and uncompromising when representing their clients. A team of compassionate and skilled family law attorneys, ADAM is dedicated to being Michigan’s leading divorce attorneys for men.

Collaboration and State Laws

When you’re dealing with the intersection of divorce and estate planning, you’ll need more than just updating a few documents—you’ll want a coordinated team of legal and financial professionals working for you.

Getting the right collaboration is essential if you want your estate plan to be comprehensive, current, and tailored to your new post-divorce situation. An experienced estate planning attorney can help you review and revise your estate planning documents so they accurately reflect what you actually want and protect the assets you’ve worked hard for.

If you live in any state, you need to understand how state laws will shape your estate plans after your divorce is final. In many states, your divorce automatically triggers the revocation of certain provisions in your estate planning documents, such as beneficiary designations on your life insurance policies and retirement accounts.

However, these automatic changes don’t always apply to every single document or account you have, and the specifics can vary widely depending on where you call home. For example, some states may automatically remove your former spouse as a primary beneficiary on your life insurance policy, while others require you to take action yourself to update that beneficiary designation.

If you fail to review and update these designations, you could end up with unintended beneficiaries receiving your hard-earned assets.

You’ll also want to consider how your state’s laws govern the division of marital assets and what tax implications those divisions might have for you. Consulting with a financial advisor can help you understand how the distribution of your property and other financial accounts will affect your overall financial planning and estate plan moving forward.

This becomes especially crucial if you have complex assets or if you’re concerned about the long-term impact your divorce will have on your financial goals.

Your healthcare directives, durable powers of attorney, and other key estate planning documents may also be affected by your state’s laws. Some states require you to create new documents post-divorce to ensure they’re legally sound and reflect your current wishes.

Reviewing these important documents with your estate planning attorney will help ensure that your chosen representatives and beneficiaries are up to date and that your estate plan complies with all the relevant laws in your jurisdiction.

Ultimately, the best way for you to protect your assets and ensure your estate plan reflects your post-divorce wishes is to work closely with both legal and financial professionals who understand your situation. By understanding the impact of your state’s laws and collaborating with experts who know what they’re doing, you can create a legally sound estate plan that secures your legacy and provides the peace of mind you deserve for yourself and your loved ones.