Update Beneficiaries After Divorce in BC

There's a gap in BC's estate law that catches divorced people off guard, and it can redirect hundreds of thousands of dollars to an ex-spouse years after the marriage ends.

Under Section 56(2) of the Wills, Estates and Succession Act (WESA), divorce automatically revokes gifts to a former spouse in your will, unless the will expressly indicates a contrary intention. Most people hear that and assume they're covered. They aren't.

What WESA Protects (and What It Doesn't)

When you and your spouse "cease to be spouses" — through a final divorce order or a permanent separation — WESA automatically revokes three things from your existing will, unless the will expressly indicates a contrary intention:

• Any gift or bequest to the former spouse
• Any appointment of the former spouse as executor, trustee, or personal representative
• Any power of appointment granted to the former spouse

The law treats these provisions as if your former spouse predeceased you. That's meaningful protection for assets that pass through your will.

But WESA governs only assets that pass through a will. It has no jurisdiction over assets that pass directly to a named beneficiary outside the estate.

The Beneficiary Blind Spot

These assets bypass your will entirely and go straight to whoever is named on the designation form at the financial institution or insurer:

• RRSPs and RRIFs — the beneficiary named with your bank, credit union, or brokerage
• TFSAs — the successor holder or beneficiary named with the financial institution
• Life insurance policies — the beneficiary named with the insurance company
• Workplace group benefits — group life, AD&D, and pension beneficiaries on file with your employer's plan administrator
• Private pension plans — the beneficiary registered with the pension administrator

If your ex-spouse is still named as beneficiary on any of these accounts, they receive the assets when you die. Your will can say whatever it wants. Your separation agreement can assign everything to your children. The beneficiary designation on file with the institution overrides both.

This isn't a theoretical risk. It's the single most common estate planning failure after divorce in British Columbia.

How to Fix It

Contact every institution and employer where you hold an account with a beneficiary designation, and submit updated designation forms:

1. RRSPs, RRIFs, and TFSAs — call your bank, credit union, or investment brokerage. Most have a standard beneficiary change form. Some allow online updates; others require a signed paper form.

2. Life insurance — contact the insurer directly. Group life through your employer requires a form submitted to your HR or benefits administrator, not the insurer.

3. Workplace group benefits — your employer's benefits administrator handles group life, AD&D, health spending accounts, and any defined contribution pension plan. Request a beneficiary change form for every plan you're enrolled in.

4. Provincial pension plans — if you're a member of the Municipal Pension Plan, Public Service Pension Plan, College Pension Plan, or Teachers' Pension Plan, contact the plan administrator to update your beneficiary designation.

Get written confirmation of every change. Keep copies in a file separate from your will.

The In-Law Blind Spot

WESA's automatic revocation applies only to the former spouse. It does not revoke gifts, bequests, or appointments made to the former spouse's relatives. If your will names your former brother-in-law as executor or your former step-child as a beneficiary, those designations remain legally binding unless you execute a new will.

Don't Wait for the Divorce to Be Final

You can and should update most beneficiary designations as soon as you separate — you don't need to wait for the divorce order. The divorce certificate is not required for beneficiary changes at financial institutions. The only exception is pension plans governed by Part 6 of the Family Law Act, where specific pension forms (P1, P2) control the division process.

The British Columbia After-Divorce Checklist includes a beneficiary audit worksheet that lists every account type, what to check, and who to contact — so nothing gets missed.

See more British Columbia guides →