What happens to dispositions made to spouses in a Last Will and Testament when a married couple divorces? Under Minnesota Statute Section 524.2-804, the provision in the Will leaving property to a former spouse is revoked and no longer effective after a marriage dissolution. Likewise, the nomination of the former spouse as personal representative or fiduciary capacity is revoked and not effective after a divorce. The other provisions of a Will generally remain effective following a divorce.
A 2002 amendment also affected beneficiary designations for spouses who are later divorced. Under the amendment, an insured’s beneficiary designation of a spouse made during a marriage is revoked by operation of law upon the dissolution of the marriage. Spouses designated as beneficiaries of life insurance policies during a marriage are no longer effective after a marriage dissolution. This was the conclusion of the Minnesota Court of Appeals in the case of In re Life Insurance Policy No. 1642947-2, Issued to Brenda DeJoode, 2013 WL6978496. In the case, Brenda DeJoode and Mark D. Main purchased a life insurance policy during their marriage insuring DeJoode’s life. The policy identified Main as the primary beneficiary and DeJoode’s estate as the contingency beneficiary upon DeJoode’s death. The beneficiary designation was never changed. DeJoode died after the couple’s divorce and Main sought to collect the life insurance proceeds from the policy. The Court of Appeals ruled that under Minn. Stat. Sec. 524.2-804, Main lost his beneficiary designation when he and DeJoode were divorced. It is therefore important to re-visit beneficiary designations for life insurance policies, IRAs, and similar accounts, in addition to a Will, after a divorce to update the beneficiary provision so that the proper disposition occurs.
Share On: