Michigan Estate Planning After Divorce: What Changes, What Doesn’t, and What You Must Do Immediately

Divorce is one of the most significant life events that can affect a Michigan estate plan. Yet in the chaos of separation — financial negotiations, custody arrangements, new living situations — updating beneficiary designations and estate planning documents is almost always the last thing on anyone’s mind. This delay can be catastrophic. Castle Wealth Group Legal helps Michigan residents rebuild their estate plans after divorce — protecting themselves, their children, and their new financial lives.

What Michigan Law Automatically Does After Divorce: Michigan Estate Planning After Divorce

Michigan law does provide some automatic protections for divorced individuals under MCL 700.2807. Under this statute, a divorce or annulment automatically revokes certain provisions in a decedent’s will that benefited a former spouse — including bequests, nominations as executor, and trustee nominations — as if the former spouse predeceased the decedent.

Important: MCL 700.2807 only applies to wills governed by Michigan law. It does NOT automatically update beneficiary designations on retirement accounts, life insurance, annuities, or payable-on-death accounts. Those must be manually changed — and failing to do so can hand your ex-spouse your entire retirement account.

What Michigan Law Does NOT Automatically Fix

1. Beneficiary Designations — Your Most Urgent Post-Divorce Task

Federal law (ERISA) governs most retirement account beneficiary designations — and ERISA preempts Michigan state law. The landmark U.S. Supreme Court case Egelhoff v. Egelhoff (532 U.S. 141, 2001) held that ERISA plan beneficiary designations override state divorce revocation statutes. Translation: if your 401(k) still names your ex-spouse after divorce, they may receive it — regardless of your divorce decree and regardless of Michigan law.

This is not a theoretical risk. Michigan probate courts see cases of ex-spouses inheriting retirement accounts every year because the account owner never updated their designation. This must be done immediately after your divorce is finalized.

2. Revocable Living Trusts: Michigan Estate Planning After Divorce

Michigan’s automatic revocation statute does not apply to revocable trusts in the same way it applies to wills. Your existing revocable living trust must be reviewed and amended or restated to reflect your post-divorce wishes — removing your former spouse as trustee, co-trustee, successor trustee, or beneficiary.

3. Powers of Attorney and Patient Advocate Designations

Your Durable Power of Attorney and Patient Advocate Designation (Michigan’s healthcare proxy) likely still name your ex-spouse as your agent. Michigan divorce law does not automatically revoke these designations for fiduciary roles. If you are incapacitated before updating these documents, your former spouse may still have legal authority over your finances and medical decisions.

4. Joint Tenancy Property: Michigan Estate Planning After Divorce

Property held in joint tenancy with right of survivorship may still pass to your ex-spouse if you die before re-titling it. Review all jointly held real estate, bank accounts, and investment accounts immediately after your divorce is finalized.

Post-Divorce Estate Planning Checklist for Michigan Residents

Every Michigan resident should complete the following steps as soon as possible after a divorce is finalized:

Update all retirement account beneficiary designations (IRA, 401(k), 403(b), 457).
Update life insurance policy beneficiary designations.
Update TOD and POD designations on bank and brokerage accounts.
Execute a new will or amend/restate your existing will.
Amend or restate your revocable living trust.
Execute a new Durable Power of Attorney naming a trusted new agent.
Execute a new Patient Advocate Designation.
Re-title jointly held property and accounts.
Review and update your Lady Bird Deed if real property was involved in the divorce.
Review life insurance ownership and policy structure with your financial advisor.

Estate Planning When Children Are Involved: Michigan Estate Planning After Divorce

Post-divorce estate planning is especially important when minor children are involved. Key considerations:

Revise your guardian nomination: Your will likely names your former spouse as guardian. While a surviving parent typically has presumptive rights, naming an alternate guardian is still important.
Trust provisions for children: Ensure that assets left for your children are held in trust with an independent trustee — not your ex-spouse — managing the funds.
Coordinate with your divorce decree: Some divorce decrees require maintaining life insurance for the benefit of children or a former spouse. Your estate plan must be consistent with these obligations.

Don’t Wait: The Window of Vulnerability

The period between when a divorce is filed and when it is finalized — which in Michigan can take months — is a particularly vulnerable time. You cannot fully change many beneficiary designations while the divorce is pending. Our attorneys help Michigan clients understand what can be changed during the divorce process and what must wait until it is finalized, so you are never exposed longer than necessary.

How Castle Wealth Group Legal Helps Michigan Residents After Divorce

We provide comprehensive post-divorce estate plan reviews for Michigan residents — helping you rebuild a plan that reflects your new life, protects your children, and ensures that your assets go exactly where you intend. Contact us to schedule your post-divorce estate planning consultation.

Michigan Estate Planning After Divorce