Over the past several years, I’ve seen an uptick in messy, complicated issues following the death of someone who was divorced. Too often, their estate plans—or lack thereof—did not reflect their new reality after divorce. Outdated beneficiary designations, unfiled QDROs, and even simple oversights like failing to retitle real estate have left families tangled in avoidable court battles.
Divorce closes one chapter of life, but it does not automatically rewrite your estate plan. Without taking deliberate steps, the people you care about most may be left with uncertainty, conflict, and unnecessary expense. Divorce is often one of the most difficult transitions in life. While most people focus on dividing assets, child custody, and moving forward emotionally, there’s one area that is frequently overlooked—estate planning. After a divorce, the plans you once put in place with your former spouse may no longer reflect your wishes.
Michigan’s “Automatic Severance” Rules—and Why They’re Not Enough
Under Michigan law, many appointments in estate planning documents—such as naming your spouse as a personal representative, trustee, or agent under power of attorney—are automatically revoked upon divorce. While this law provides some protection, it does not eliminate every potential issue. For example, beneficiary designations on life insurance or retirement accounts are not always covered, and disputes can still arise if your documents conflict with the statute. If you pass away without making intentional updates, your family may be forced to resolve these issues in probate court—an outcome that is stressful, costly, and avoidable.
Qualified Domestic Relations Orders (QDROs)
If your divorce involves dividing a retirement account—such as a 401(k), pension, or other employer-sponsored plan—you’ll likely need a Qualified Domestic Relations Order (QDRO). A QDRO is a separate court order, distinct from the Judgment of Divorce, that instructs the plan administrator on how to divide the retirement benefits without triggering taxes or penalties.
One of the most common problems is timing. QDROs often take months to prepare and approve, and in some cases, they aren’t even drafted or filed until after the Judgment of Divorce has been entered. That lag can create major problems if it’s forgotten or left incomplete. Until the QDRO is properly filed with the court and accepted by the plan administrator, the division of retirement assets is not legally enforceable.
It is imperative that your QDRO is not only drafted correctly but also filed and approved. A small mistake—or a missing filing—can mean retirement funds are never divided as intended, leaving one spouse without their rightful share and forcing costly court battles years down the road.
Deed Transfers After Divorce
Another common oversight occurs with real estate. Even when a divorce judgment awards the marital home to one spouse, the title itself does not automatically change. A new deed—such as a quitclaim deed—must be prepared and recorded to reflect the new ownership. When this step is skipped, problems can arise years later if you try to sell, refinance, or leave the property to heirs.
Post-Divorce Estate Planning: The Checklist Most People Forget
To help ensure your affairs truly reflect your new circumstances, here’s a quick checklist of post-divorce estate planning items:
1. Update Your Estate Plan
If your will or trust still lists your former spouse as a beneficiary or executor/trustee, those documents need to be revised. Otherwise, your assets may end up in the wrong hands. Consider whether you want to create a new trust or other protections to ensure your assets are preserved for your children or loved ones, especially if you remarry. Additionally, if your ex-spouse is still named as your financial or healthcare decision-maker, you may want to appoint someone you trust to take over these important roles.
2. Review Beneficiary Designations
Life insurance policies, retirement accounts, and bank accounts with transfer-on-death designations must be updated separately from your will. These designations override your estate plan, so double-check them. If you execute a new trust document post-divorce, ensure that you follow the funding instructions set forth by your trust attorney.
3. Review Guardianship Designations
One of the most sensitive estate planning issues after divorce is deciding who should care for your minor children if something happens to you. By default, your ex-spouse—assuming they have parental rights—would likely become the guardian. However, estate planning allows you to express your wishes if you believe another arrangement would better serve your children’s best interests.
While your nomination of a guardian is not binding on the court, it carries significant weight. For example, you may want to designate a trusted family member, such as a grandparent or sibling, if you believe your ex-spouse is unable or unfit to serve as guardian. In those cases, your estate plan becomes a critical piece of evidence for the court to review.
Making your wishes clear in your will or trust does not strip your ex-spouse of their rights, but it does create a roadmap for the court. Judges are required to consider the best interests of the child, and your written appointment ensures your voice is part of that decision.
The Bottom Line:
Divorce is a closing chapter, but it should also mark the beginning of a fresh start for your estate plan. Updating these documents—and making sure technical details like QDROs, deed transfers, and beneficiary designations are handled properly—provides peace of mind, ensures your wishes are carried out, and protects the people who matter most to you.
