Going through a divorce changes nearly every part of your life — your home, your finances, and your plans for the future. But one area that often gets overlooked is who you have named to receive your money and property after you pass away. If you do not take action after your divorce is final, the wrong person could end up with everything you worked hard to build.
Do not wait — your loved ones' financial security may be at risk right now. Reach out to Lynch & Owens, P.C. through our online contact form or call us at (781) 253-2049 to talk through your situation today.
Why Updating Beneficiaries Matters After Divorce
A beneficiary is a person you choose to receive your money, property, or other assets when you die. You name beneficiaries on financial accounts, insurance policies, and legal documents like a last will and testament. Most people name their spouse as a primary beneficiary when they get married — and then never update it.
After a divorce, those names often stay exactly as they are. In many cases, your ex-spouse could still be listed to receive your retirement savings or life insurance payout unless you take direct action.
What Is a Beneficiary Designation?
A beneficiary designation is simply a form you fill out that tells a company or institution who should receive your account or policy when you die. It is separate from your will. Beneficiary designations generally override whatever your will says — meaning even a carefully written will cannot change who gets your 401(k) if the designation form still names your ex-spouse.
This is one of the most important things to understand after a divorce. The two documents do not always work together the way people assume.
Your Post-Divorce Beneficiary Update Checklist
Many people do not realize how many places their ex-spouse may still be named as a beneficiary. It is worth reviewing each of these carefully after your divorce is finalized. Here are the most common accounts and documents to go through:
- Life insurance policies — including individual plans and any group coverage offered through your employer
- Retirement accounts — such as a 401(k), 403(b), IRA, or pension plan
- Bank accounts with a "payable on death" (POD) designation — meaning the funds go straight to the named person when you die, bypassing your will entirely
- Investment or brokerage accounts with a "transfer on death" (TOD) designation — similar to POD accounts, but for investments
- Your last will and testament — the legal document that says who inherits your property after you die
- Trusts — a trust is a legal arrangement where one person, called a trustee, manages assets on behalf of someone else
- Health savings accounts (HSAs) — tax-advantaged accounts used to pay for medical expenses
- Annuities — financial products that pay out a stream of money over a period of time
- Any jointly owned accounts or real estate where you want to remove your ex-spouse
Working through this list right after your divorce is finalized can prevent serious problems for your family down the road. Even starting with just one or two accounts is a meaningful step in the right direction.
Updating Your Last Will and Testament After Divorce
Your last will and testament is a legal document that outlines who receives your property when you die. In Massachusetts, the law does remove a former spouse from some parts of your will after a divorce, but this protection does not apply to every type of asset. It also does not apply in every state if you ever move.
Writing a brand-new will after your divorce is always the safest approach. A new will gives you full control over your updated wishes and lets you name a new executor — the person responsible for carrying out the instructions in your will — along with new guardians for your minor children if needed.
Why Retirement Accounts and Life Insurance Deserve Extra Attention
Retirement accounts and life insurance policies follow their own separate rules. They pass directly to whoever is listed on the account's beneficiary designation form — no matter what your will says. If your ex-spouse is still named on your 401(k), they could receive those funds even if your will clearly leaves everything to your children.
Many retirement accounts are governed by federal law, which often overrides state divorce laws. This means you must contact each financial institution individually and submit a new beneficiary form. It is a step that only you can take — it will not happen on its own.
What Happens If You Do Not Make These Updates
If you pass away without updating your beneficiary designations, your assets may go to your ex-spouse instead of your children, parents, or other loved ones you intended to provide for. A court order from your divorce proceedings cannot always override a beneficiary designation on a financial account.
Courts have consistently upheld these designations, even in cases where it was clear the person would not have wanted that outcome. This happens to real families every year, and the disputes it creates can be both costly and heartbreaking.
A Note on Trusts and Jointly Owned Property
If you have a trust, check whether your ex-spouse is named as a trustee or a beneficiary. Both roles give them legal authority or rights over those assets, and both should be reviewed after a divorce. A new or revised trust document may be needed to reflect your current wishes.
Jointly owned bank accounts and real estate also need attention. Depending on how the ownership is set up, your ex-spouse may still have legal rights to those assets even after the divorce is finalized. Speaking with an attorney can help you understand exactly what needs to change and how to change it.
Talk to an East Sandwich Divorce Attorney About Your Last Will and Testament Today
Updating your beneficiaries after a divorce is not just a financial task — it is a way of protecting the people you care most about. The checklist above is a practical place to start, but working through the legal side of these updates can be complicated. Having knowledgeable guidance makes a real difference.
Lynch & Owens, P.C. works with individuals navigating divorce and planning for what comes next in East Sandwich and throughout Massachusetts. Whether you have questions about your last will and testament, your retirement accounts, or your overall estate plan, our team is ready to walk with you through every step. Contact us today through our online contact form or call us at (781) 253-2049 to schedule a consultation.