Michigan Divorce and Your Estate Plan: What Auto-Revokes and What Doesn't

Divorce is one of the most common triggers for accidental disinheritance. You spend months negotiating a settlement, you finally get the judgment, and then real life resumes - and nobody thinks to update the beneficiary form on the 401(k), the life insurance policy, or the will drafted five years ago that leaves everything to your now-ex-spouse. Michigan tries to help: MCL 700.2807 automatically revokes your ex-spouse from most estate planning documents at the moment your divorce is finalized. But federal ERISA law overrides Michigan on employer retirement plans and group life insurance - meaning your ex STILL inherits those unless you file a new beneficiary form directly with the plan administrator. This guide covers exactly what changes automatically in Michigan after divorce, what stays exactly the same, and the 30-60 day checklist that prevents your ex from walking off with assets you meant for your children.

The 30-Second Answer

When a Michigan divorce judgment enters, MCL 700.2807 automatically revokes your former spouse (and certain former-spouse relatives) from:

• Your will
• Your revocable trust
• Non-ERISA beneficiary designations (traditional IRAs, Roth IRAs, most POD/TOD accounts, non-employer life insurance)
• Fiduciary appointments (personal representative, trustee, patient advocate, POA agent)
• Joint tenancy with right of survivorship (converts to tenancy in common)

The statute does NOT reach:

• ERISA-governed retirement plans (401(k), 403(b), pension) - your ex still gets the money if named
• Employer group life insurance (ERISA-governed)
• Irrevocable trusts (ILITs) created during the marriage
• Beneficiary designations required by your divorce judgment (child support security, etc.)

Practical implication: file fresh beneficiary designations directly with EVERY financial institution within 30-60 days of the judgment. Do not rely on automatic revocation for the ERISA-carved-out accounts. Total DIY cost to redo everything: $89 (new Michigan Will Kit) plus $0-$50 for updating beneficiary forms.

The Michigan Revocation-on-Divorce Rule (MCL 700.2807)

The full text of MCL 700.2807(1)(a)(i) is short but consequential:

"Except as provided by the express terms of a governing instrument, court order, or contract relating to the division of the marital estate made between the divorced individuals before or after the marriage, divorce, or annulment, the divorce or annulment of a marriage... [r]evokes a disposition or appointment of property made by a divorced individual to his or her former spouse in a governing instrument and a disposition or appointment created by law or in a governing instrument to a relative of the divorced individual's former spouse."

Three key definitions from MCL 700.2806 control how the statute operates:

• "Governing instrument": a governing instrument executed by the divorced individual BEFORE the divorce. Includes wills, trusts, life insurance policies, annuity policies, POD/TOD designations, deeds, and IRA/retirement plan beneficiary forms (except ERISA-preempted).
• "Disposition or appointment of property": transfers or benefits to a beneficiary. Includes gifts, powers of appointment, contingent interests, and fiduciary appointments.
• "Relative of the divorced individual's former spouse": someone related to the former spouse by blood, adoption, or affinity who is NOT also related to the divorced individual. This is the "stepchild who is not a biological child" scenario.

The statute became constitutional-law bedrock in Sveen v. Melin, 584 U.S. 811 (2018), where the U.S. Supreme Court upheld a Minnesota revocation-on-divorce statute against a Contracts Clause challenge. Michigan's statute has been repeatedly applied by Michigan Court of Appeals, most notably in In re Joseph & Sally Grablick Trust, 339 Mich App 534 (2021), which held that the biological daughter of the decedent's ex-wife (not the decedent's own biological daughter) was NOT a beneficiary of the decedent's will or trust because the disposition was revoked when the decedent's marriage ended.

What Divorce Automatically Revokes

Under MCL 700.2807, a Michigan divorce judgment automatically strikes your ex-spouse from all of the following:

1. Your Will

Any gift or bequest to your former spouse in your will is revoked. The will itself remains valid - just the provisions favoring the ex are stricken. If your will named your ex as personal representative, that appointment is revoked and Michigan treats the appointment as if the ex-spouse had disclaimed.

2. Your Revocable Living Trust

Same rule applies to a revocable trust. Any distribution to your ex-spouse is revoked. If your ex was named as successor trustee, that appointment is revoked.

3. Most Beneficiary Designations

Traditional IRAs, Roth IRAs, individually-owned life insurance policies, POD bank accounts, TOD brokerage accounts - most of these are treated as "governing instruments" under MCL 700.2807 and the ex-spouse designation is automatically revoked.

4. Fiduciary Appointments

Personal representative (executor), trustee, patient advocate, agent under durable power of attorney, conservator, guardian - if your ex was appointed to any of these roles, the appointment is revoked.

5. Joint Tenancy with Right of Survivorship

Real estate held as joint tenants with right of survivorship converts to tenancy in common at divorce. Practical effect: the surviving co-owner no longer inherits the other's share by operation of law - the deceased ex-spouse's share goes to their heirs. If you owned Michigan real estate as tenants by the entirety (a spousal-only form of joint ownership), the tenancy by the entirety terminates and also converts to tenancy in common.

6. Powers of Appointment

Any power of appointment given to the ex-spouse over trust property is revoked.

What Divorce Does NOT Automatically Revoke

This is where families get in trouble. Michigan's automatic revocation stops at the edge of federal law and at the edge of contractual arrangements outside the divorce judgment. Here are the biggest gaps:

1. ERISA-Governed Retirement Plans

Employer-sponsored 401(k)s, 403(b)s, and defined-benefit pension plans are governed by federal ERISA law. The U.S. Supreme Court has repeatedly held that ERISA preempts state revocation-on-divorce statutes. Result: if your ex is still named as beneficiary on your 401(k), the plan administrator MUST pay your ex when you die - even if you divorced years earlier - unless you filed a fresh beneficiary form.

2. Employer Group Life Insurance

Group life insurance offered through your employer is typically ERISA-governed and the same rule applies. Your ex remains the beneficiary until you file a new form with your HR / benefits administrator.

3. Irrevocable Life Insurance Trusts (ILITs) and Other Irrevocable Trusts

An irrevocable trust created during your marriage that names your spouse as beneficiary is generally not touched by MCL 700.2807. The trust is a separate legal entity with its own terms and the divorce revocation does not automatically modify irrevocable trusts. Amending an ILIT after divorce typically requires court intervention or specific trust protector powers.

4. Assets Your Divorce Judgment Preserved

Under MCL 700.2807, the statute yields to "the express terms of... a court order." If your divorce judgment specifically orders you to maintain a life insurance policy with your ex-spouse as beneficiary (typical for child-support or alimony security), that court-ordered designation is NOT revoked by the statute. Michigan family courts frequently include such orders under MCL 552.101.

5. Beneficiary Designations Made AFTER the Divorce

If you affirmatively name your ex-spouse as beneficiary AFTER the divorce, that designation is valid. Michigan MCL 700.2807 revokes only pre-divorce designations. Some divorced individuals do intentionally re-name an ex-spouse (say, to protect children of the marriage). That is legally permitted.

6. QDRO-Assigned Retirement Interests

If your divorce judgment includes a Qualified Domestic Relations Order (QDRO) that assigns a portion of your retirement plan to your ex-spouse, that assignment is enforced by federal law and cannot be undone by post-divorce beneficiary changes.

The ERISA 401(k) Trap

The single most dangerous scenario in Michigan divorce estate planning: you die shortly after divorce with your ex still named as beneficiary on your 401(k) or employer life insurance. Here is what happens:

1. Your children (or new spouse) call the plan administrator to claim the account
2. Plan administrator checks the beneficiary form on file - shows your ex
3. Plan administrator pays your ex. ERISA requires the administrator to follow the beneficiary form regardless of state revocation statutes or your intentions.
4. Your intended heirs sue your ex to try to recover the money. Michigan courts have held (Reed Estate case, 2011 COA) that if the divorce judgment includes an explicit waiver of retirement benefit rights, the intended heirs MAY be able to recover the funds from the ex through a separate lawsuit. But this is expensive litigation with uncertain results.

The practical answer: never assume state law protects you against ERISA-governed accounts. File a new beneficiary form with every employer retirement plan administrator within 30 days of your divorce judgment. Confirm in writing.

The In-Law and Stepchild Rule

MCL 700.2807 goes further than just the ex-spouse. Under MCL 700.2806(e), the revocation also strikes:

• The former spouse's parents (former in-laws)
• The former spouse's siblings, nieces, and nephews (former in-laws)
• The former spouse's children who are NOT also biological or adoptive children of the divorced individual (stepchildren from the ex-spouse's prior relationship)

The Grablick Trust case highlighted the stepchild issue: a decedent had raised his ex-wife's daughter as if she were his own but had never legally adopted her. When the decedent divorced and later died, the daughter argued she should still inherit under the trust. The Michigan Court of Appeals held: no, MCL 700.2807 revoked her disposition because she was the "relative of the divorced individual's former spouse" and not related to the decedent by blood or adoption.

The fix: if you want a stepchild to inherit despite divorce, EITHER (a) formally adopt them, OR (b) put "express terms" in the will or trust stating your intent to continue the disposition regardless of any divorce. Without one of these, MCL 700.2807 will strike them out.

Your Divorce Judgment Overrides the Statute

MCL 700.2807 has an important exception: "except as provided by the express terms of a governing instrument, court order, or contract relating to the division of the marital estate." Your divorce judgment IS a court order. If your judgment says specific things about beneficiary designations, insurance policies, or estate plan provisions, those judgment terms override the statutory default.

Common divorce-judgment provisions that override MCL 700.2807:

• Life insurance ordered maintained for child support or alimony security. Your judgment may say "Husband shall maintain a life insurance policy of $500,000 with Wife as beneficiary for so long as spousal support obligations continue." That designation is NOT revoked by the statute.
• QDRO retirement account splits. The QDRO assigns a portion of your retirement to your ex; you cannot change that assignment by post-divorce beneficiary form changes.
• Property settlement provisions. Your judgment may require certain assets to be held for the benefit of your children with your ex-spouse as trustee. Those provisions control.

Before making ANY post-divorce beneficiary changes, read your divorce judgment carefully. Ideally review with your divorce attorney. Changing designations that your judgment ordered preserved can trigger contempt-of-court proceedings.

The "Residuary Beneficiary Gap"

Even when MCL 700.2807 works as intended, it only REMOVES your ex-spouse - it does NOT NAME anyone new. The asset falls to the next person named in the governing instrument. That "next person" may not be who you would choose today.

Example: your pre-divorce will says "Everything to my spouse; if my spouse predeceases me, then to my brother Bob." At divorce, the disposition to your spouse is revoked. Michigan treats your ex as if they predeceased you. So everything goes to Bob. But maybe you want your children to inherit now, not Bob. Or maybe Bob has since become estranged.

The residuary gap catches families all the time. The fix: after divorce, do not rely on the automatic revocation - execute a fresh will and revocable trust that name the people you actually want as primary and contingent beneficiaries. Cost: $89 for a full Michigan Will Kit or $349 for a Complete Bundle including trust template. See our Michigan will witness requirements guide for the execution rules.

The 30-60 Day Post-Divorce Checklist

Once your Michigan divorce judgment enters, work through this list within 30-60 days:

Days 1-7: Assessment

1. Read your divorce judgment carefully. Note any provisions about life insurance, retirement accounts, property division, or ongoing support that affect estate planning.
2. Inventory all governing instruments: will, trust, all financial account beneficiary designations, real estate deeds, business ownership documents, digital assets.

Days 7-30: Direct Updates (Priority)

3. File a new beneficiary form with your 401(k) or 403(b) plan. Contact HR / benefits administrator. Get written confirmation.
4. File a new beneficiary form for employer group life insurance. Same HR portal, separate form.
5. Update your IRA and Roth IRA beneficiaries. Log into Fidelity, Schwab, Vanguard, or whichever custodian you use.
6. Update life insurance policies. Contact each policy's insurer (individual policies are separate from employer group life).
7. Update POD/TOD designations on bank and brokerage accounts. Visit the teller window or use the online portal.
8. Update Michigan vehicle TOD designations if you had your ex as beneficiary. Michigan Secretary of State branch or online.

Days 30-60: Estate Plan Rebuild

9. Draft and sign a new Michigan will. Do NOT rely on the automatic revocation to make the old will "work" - draft a fresh will that names new primary and contingent beneficiaries. Get it witnessed by two disinterested people under MCL 700.2502.
10. Amend or restate your revocable trust. Same reasoning. See our Michigan trust amendment guide.
11. Sign a new Durable Financial Power of Attorney. Name a new agent - not your ex.
12. Sign a new Patient Advocate Designation (Michigan healthcare POA). Name a new patient advocate under MCL 700.5506.
13. Sign a new HIPAA release naming who can access your medical records.
14. Update guardian nominations for minor children if you had named an in-law family member as guardian.
15. Review real estate deeds. If you and your ex still hold Michigan property as tenants in common (post-divorce conversion), consider a Lady Bird deed to your children or your revocable trust to bypass probate. See our Michigan Lady Bird deed guide.
16. Redo any beneficiary-related designations at your bank. POD forms, safe deposit box authorized signatories, etc.

Ongoing: Verification and Documentation

17. Confirm all changes in writing. Get confirmation letters from every institution.
18. Store your judgment, new estate plan, and beneficiary confirmations together. In a fireproof safe or safe deposit box.
19. Tell your new fiduciaries where the documents are. The new personal representative, new patient advocate, new POA agent should all know.

Frequently Asked Questions

Does filing for divorce trigger MCL 700.2807, or does the judgment have to be final?

The judgment has to be final. Michigan revocation-on-divorce applies only after the divorce judgment (or annulment or dissolution) has been entered. During the pendency of the case, your existing beneficiary designations still favor your soon-to-be-ex. If you die while the divorce is pending, your soon-to-be-ex may still inherit unless you have already changed the designations.

Can I change my beneficiary designations WHILE the divorce is pending?

Michigan has strict "automatic status quo" orders during pending divorces. The Michigan Court Rules and most Michigan county case management orders prohibit changing beneficiary designations, transferring property, or making significant financial changes during the case. Violating these can result in contempt of court, sanctions, and adverse rulings in the property division. Talk to your divorce attorney before making any pre-judgment beneficiary changes.

What if my ex remarries and I want to still let their children inherit?

You need to explicitly re-designate them (post-divorce) or include express terms in a new will or trust stating your intent to continue disposition to those specific people despite the divorce.

What if I remarry after my divorce - what protects the new spouse?

Nothing automatic. You must sign a new estate plan naming the new spouse. Michigan law provides some "pretermitted spouse" protections under MCL 700.2301 if you marry someone after signing a will that pre-dates the marriage, but these are limited. Better: execute a fresh will and trust naming your new spouse.

Does divorce revoke gifts I already made during the marriage?

No. Completed gifts made during the marriage are not undone by divorce. MCL 700.2807 applies only to future testamentary transfers and beneficiary designations that would have paid out at your death.

Are separation agreements (before divorce is final) protected?

MCL 700.2807 applies only to divorce and annulment judgments. Separation agreements do not automatically revoke beneficiary designations unless the agreement itself expressly states so and both parties sign the required beneficiary-change forms.

What about foreign divorces - do they trigger MCL 700.2807?

Michigan recognizes valid out-of-state and foreign divorces. If your divorce is recognized in Michigan, the revocation-on-divorce statute applies. See our Michigan non-citizen spouse guide for cross-border considerations.

Does divorce affect Michigan Lady Bird deeds?

Under MCL 700.2807, a Lady Bird deed granting a remainder interest to your ex-spouse is revoked at divorce. But because Lady Bird deeds involve real property recorded in county land records, best practice is to record a new deed removing your ex and naming your intended remainder beneficiaries. See our Lady Bird deed recording guide.

What if my divorce judgment does not mention estate planning?

Then MCL 700.2807 applies in full - it revokes your ex-spouse from your will, trust, and non-ERISA beneficiary designations by default. But the residuary gap (see above) applies, so a new estate plan is strongly recommended.

Can my ex-spouse waive their right to inherit ahead of time (before divorce is final)?

Yes. Michigan permits pre-divorce or post-divorce waivers of inheritance rights under MCL 700.2205. The waiver must be in writing, signed by the waiving party, and generally executed with full disclosure of the other party's assets and income. Some Michigan divorce judgments include explicit inheritance waivers for both spouses.

How much does it cost to redo my estate plan after divorce in Michigan?

DIY with a Michigan-specific template: $89 for the CreateMIWill Will Kit (Michigan will + POA + Patient Advocate + healthcare directive + HIPAA release + Lady Bird deed template). $349 for the Complete Bundle if you want a Michigan trust template too. With an attorney: $500-$2,500 for a comprehensive post-divorce estate plan review and redraft.

Is there a Michigan grace period before MCL 700.2807 kicks in?

No. The revocation takes effect immediately upon entry of the divorce judgment. There is no waiting period. This is why the 30-60 day post-divorce update timeline matters - many financial institutions take 2-4 weeks to process beneficiary form changes.

Rebuild Your Michigan Estate Plan Post-Divorce

The CreateMIWill Will Kit ($89) is designed for exactly this scenario. Fresh Michigan will, Durable Financial Power of Attorney, Patient Advocate Designation, HIPAA release, and Lady Bird deed template - all Michigan-specific, all in one attorney-drafted package. Get everything signed and witnessed in an afternoon. Complete Bundle ($349) adds a Michigan trust template if you want the full post-divorce rebuild.