Divorce changes more than a marriage certificate. It changes financial lives, relationships, and legal obligations, and it also has a direct impact on every major part of an estate plan. We often meet clients in Troy and Shelby Township who completed thoughtful estate plans years earlier while married, but never updated anything after separation or divorce.
The reality is that Michigan law automatically changes some provisions after divorce, but leaves other provisions intact unless action is taken. That mix can create serious unintended results. The safest step is to review and update the entire plan as soon as divorce becomes final, and in many cases even earlier. Understanding what the law changes automatically, and what it does not, is key to protecting family, children, and long-term goals.
Under Estates and Protected Individuals Code, divorce can revoke many estate planning gifts and appointments made in favor of a former spouse. At the same time, beneficiary designations on accounts, lifetime powers, and certain non-probate transfers may require affirmative updates to prevent unwanted outcomes. Courts will follow documents as written if statutes do not automatically change them. That is why delay creates risk. We will outline how wills, trusts, beneficiary designations, and powers of attorney are affected, and why fast action after divorce is essential.
How Divorce Affects A Michigan Will
Michigan law provides that a former spouse is treated as having predeceased the testator for certain estate planning provisions after divorce. Under MCL 700.2807, provisions of a will in favor of a former spouse are revoked by operation of law unless the document expressly states otherwise. This means that, generally, a former spouse will no longer inherit directly under a will once the divorce is final.
However, the automatic change does not solve every problem. A will may name a former spouse’s relatives as contingent beneficiaries, personal representatives, or trustees. Those designations may or may not be automatically revoked depending on the circumstances. In addition, a will that left everything to a former spouse may now lack clear alternative beneficiaries. That can force property to pass under Michigan intestacy law instead of according to current wishes. For these reasons, even with the statute in place, we strongly encourage preparing a new will after divorce.
Divorce And Michigan Trusts
Revocation-on-divorce rules also apply to many revocable trusts. Under MCL 700.2807, provisions in a governing instrument, such as a revocable trust that benefits a former spouse, are usually revoked when divorce becomes final. In practical terms, a former spouse is treated as having died before the grantor with respect to those provisions.
The automatic rule, however, does not rewrite the rest of the trust. Former in-laws, stepchildren, or other beneficiaries may still be named. Former spouses may also remain as trustees or successor trustees if the document is not updated, depending on the wording. If minor children are involved, updated trust planning is often critical to avoid unintended control over assets. Reviewing and amending the trust document after divorce helps ensure that management and distribution match current wishes.
Beneficiary Designations After Divorce
A large share of wealth today passes outside probate through beneficiary designations on:
- Life insurance.
- Retirement accounts
- Payable-on-death (POD) or transfer-on-death (TOD) accounts
- Annuities
Michigan’s revocation-on-divorce statute, MCL 700.2807(1)(b), generally applies to non-probate transfers as well, revoking dispositions to a former spouse by operation of law unless the instrument or plan provides otherwise. However, federal law may control certain retirement plans governed by ERISA. In those cases, plan documents sometimes control even after divorce unless changed formally. That is why the safest approach is to update beneficiary forms directly with financial institutions immediately after divorce rather than relying solely on statutory revocation.
Powers Of Attorney And Medical Directives After Divorce
Divorce also affects lifetime decision-making documents. A durable financial power of attorney often names a spouse as agent. While separation may make that choice inappropriate, the document may still technically authorize that person to act until revoked or replaced. Michigan law anticipates this issue in health care decision documents. Under MCL 700.5506(2), appointment of a spouse as patient advocate is revoked upon divorce unless the designation expressly provides otherwise.
Even with these statutory protections, it is essential to sign new documents. Financial institutions and health care providers rely on clarity. New durable powers of attorney and new patient advocate designations remove uncertainty and place decision-making authority in trustworthy hands.
What Happens If An Estate Plan Is Not Updated
Failing to update estate planning documents after divorce can result in:
- Unintended heirs
- Former spouses controlling funds for children
- Outdated guardianship nominations
- Confusion for family members
- Increased legal costs due to disputes
Courts must follow valid documents and applicable statutes. If plans are outdated, courts cannot simply guess new intentions. An organized review after divorce helps prevent these problems and provides peace of mind.
Timing: When To Update Estate Planning Documents
The most common question we hear is whether to wait until a divorce is final. The answer depends on circumstances. During divorce proceedings, certain automatic orders can restrict changing beneficiary designations or transferring assets, but new wills and new powers of attorney can often be prepared during the process. After the entry of the judgment of divorce, every part of an estate plan should be reviewed. Beneficiary designations should be updated as soon as permitted, and all new estate documents should be signed promptly.
Coordinating Estate Planning With Child And Property Agreements
Divorce judgments often address custody, parenting time, and property division. Estate planning needs to align with those provisions. Trusts for minor children, life insurance requirements in divorce judgments, and continued obligations such as support can all affect the structure of the plan. A coordinated approach ensures that estate documents and court orders work together rather than create conflict.
Estate Planning Post-Divorce Frequently Asked Questions
Does Divorce Automatically Remove A Former Spouse From A Michigan Will?
Under Michigan law, most provisions in a will in favor of a former spouse are revoked after divorce under MCL 700.2807. The former spouse is generally treated as if they had predeceased the testator. However, that automatic revocation may not address contingent beneficiaries, fiduciary roles, or outdated overall planning. Preparing a new will is still strongly recommended to reflect current wishes accurately.
Are Beneficiary Designations Automatically Changed By Divorce?
Michigan’s revocation-on-divorce statute often applies to beneficiary designations, but not in every situation. Some retirement plans governed by federal law may still honor the last signed designation even after divorce, unless a new form is filed. Because of these complexities, changing beneficiary forms directly with insurers and plan administrators after divorce is essential to ensure assets pass as intended.
What Happens To A Revocable Living Trust After Divorce?
Provisions benefiting a former spouse under a revocable trust are generally revoked by operation of law under MCL 700.2807, but the balance of the trust remains in place. Former in-laws or stepchildren may still be named, and a former spouse may remain as trustee or successor trustee, depending on the language. Amending the trust after divorce ensures that trustees and beneficiaries are current.
Should Powers Of Attorney Be Updated After A Divorce?
Yes. Even where statutes revoke certain roles automatically, outdated powers of attorney can create confusion and delay during emergencies. New durable financial powers of attorney and updated patient advocate designations confirm who has authority to act. These documents are often critical during periods of illness or incapacity, so review after divorce is very important.
Is It Possible To Update Estate Planning Documents During A Divorce Case?
Often yes, although certain court orders during divorce may restrict transfer of assets or beneficiary changes. New wills, new powers of attorney, and trust planning can frequently be updated during the process. The exact timing should be reviewed in light of any temporary restraining provisions in the divorce case. Once the divorce judgment is entered, a full update is strongly advised.
What Happens If No New Plan Is Created After A Divorce?
If no new plan is created, statutory revocation rules will remove some former spouse provisions, but the plan may still be incomplete or inconsistent. Property may pass in unintended ways, and court involvement may increase. Updating documents creates clarity, avoids disputes, and ensures that planning reflects current family relationships and goals.
Call To Update A Michigan Estate Plan After Divorce
Divorce is a major life change, and an estate plan must keep pace with it. A careful review protects assets, children, and future decision-making arrangements. Our offices in Troy and Shelby Township regularly assist clients in Oakland County and Macomb County with updating wills, trusts, beneficiary designations, and powers of attorney after divorce.
For guidance on revising an estate plan following divorce, call the Michigan estate planning lawyers at Boroja, Bernier & Associates at 586-991-7611 to schedule a consultation. Our offices are located in Troy, Michigan, and Shelby Township, Michigan, and we serve clients throughout Oakland County and Macomb County. We are ready to review existing documents, explain how Michigan law applies, and help ensure that an estate plan reflects today’s circumstances and future goals.
