Estate Planning After Divorce in New Jersey

The Automatic Protections and the Gaps They Don't Cover

N.J.S.A. 3B:3-14 provides some automatic protection: once the Final Judgment of Divorce is entered, the statute treats your former spouse as if they predeceased you for purposes of wills, revocable trusts, and probate-governed beneficiary designations. This means a bequest to your ex-spouse in your existing will is generally revoked by operation of law, unless the Final Judgment of Divorce or integrated Property Settlement Agreement requires that provision to be maintained — you don't need to rush to an attorney's office on the day of your divorce.

But this automatic revocation only kicks in when the JOD is entered. During the divorce litigation itself — from the day the complaint is filed until the Final Judgment is entered — your existing will remains fully valid. If something happens to you during a contested divorce that drags on for months, your spouse inherits exactly as your will directs.

More importantly, the automatic revocation has major blind spots. It doesn't reach ERISA-governed retirement accounts, group life insurance policies, or federal assets like U.S. savings bonds. Those require manual beneficiary updates regardless of what the statute says.

What to Update and Why

Your will. Even though N.J.S.A. 3B:3-14 voids bequests to your ex, you shouldn't rely on a will that was drafted for a married person. The will likely names your ex-spouse as executor, alternate guardian for your children, and beneficiary of specific assets. Draft a new will that names new executors, guardians, and beneficiaries who reflect your post-divorce life.

Revocable living trust. If you created a living trust during your marriage, the trust provisions naming your ex-spouse as trustee or beneficiary are generally revoked by statute, subject to any express requirement in the Final Judgment of Divorce or integrated Property Settlement Agreement. But the trust structure itself may no longer serve your needs — the distribution percentages, the contingent beneficiaries, the trustee succession plan all need review.

Durable power of attorney. Here's an important distinction: divorce does not automatically revoke a power of attorney. Under N.J.S.A. 46:2B-8.11, a POA remains in effect until the principal actively revokes it. If your ex-spouse holds your durable power of attorney, they can still make financial decisions on your behalf until you deliver a written revocation to them and to every financial institution that has the POA on file.

Don't just draft a new POA — affirmatively revoke the old one. Send the revocation letter by certified mail to your ex-spouse and to every bank, brokerage, and institution where the POA might be exercised.

Healthcare proxy / advance directive. A former spouse's designation as health care representative is revoked upon divorce under N.J.S.A. 26:2H-57, unless the advance directive says otherwise. Replace the directive with a new one naming someone you currently trust, and provide copies to your primary care physician and local hospital.

The Federal Preemption Problem (Again)

This bears repeating because it matters so much in estate planning: your ERISA-governed retirement accounts and group life insurance are not covered by New Jersey's automatic revocation. Under Egelhoff v. Egelhoff, if your ex is still the named beneficiary on your 401(k) when you die, the plan pays them. Full stop.

Log into every retirement account and insurance portal and update the beneficiary designation forms. For NJ public employees whose MBOS portal is blocked by a court order, submit a paper Designation of Beneficiary form to the Division of Pensions & Benefits.

Consider a Trust for Minor Children

If you have minor children from the marriage, your new estate plan should address how assets pass to them. Leaving money directly to minors creates practical problems — a court-appointed guardian manages the funds, which involves ongoing court supervision and costs. A trust lets you name a trustee of your choosing, set conditions on distributions (age milestones, education, etc.), and keep the funds out of probate.

When to Do This

Estate planning updates should happen within the first month after the divorce, once you've handled the most urgent deadlines (the 90-day deed transfer and 60-day health insurance window). The New Jersey After-Divorce Checklist includes estate planning as part of the full post-divorce sequence, so it doesn't get lost in the shuffle.

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