How to Update Beneficiaries After Divorce in Michigan

Michigan law automatically revokes your ex-spouse from your will and trusts when your divorce is finalized. That sounds like protection enough — but it has a critical blind spot that has cost families hundreds of thousands of dollars.

Federal ERISA law overrides Michigan's state protections for employer-sponsored retirement plans and group life insurance. If your ex is still listed as beneficiary on your 401(k) or workplace life insurance, they will legally inherit those assets when you die — no matter what your divorce decree, your will, or Michigan law says.

What Michigan Law Does Automatically (MCL 700.2807)

Under the Estates and Protected Individuals Code, the entry of your final Judgment of Divorce automatically:

• Revokes bequests to your ex-spouse in your will, revocable trust, and standard transfer-on-death accounts
• Revokes fiduciary appointments — your ex is removed as personal representative, trustee, conservator, or health proxy
• Severs joint tenancy — property held as joint tenants converts to tenancy in common
• Revokes patient advocate designation — under MCL 700.5506(2), your ex can no longer make medical decisions for you

These are automatic. You don't need to file anything for them to take effect.

The ERISA Exception: What You MUST Update Manually

None of the automatic protections above apply to:

• Employer-sponsored 401(k) accounts
• 403(b) retirement plans
• Employer pension plans
• Employer-provided group life insurance

These are ERISA-governed plans, and federal law requires the plan administrator to pay benefits to whoever is listed on the beneficiary form at the time of death. Period.

If you divorced five years ago and never submitted a new beneficiary form to your HR department, your ex-spouse is still the legal beneficiary. Your new partner, your children, your parents — none of them can override that designation, even with a will that says otherwise.

The Update Checklist

Immediate (Within 30 Days of Decree)

1. Employer 401(k)/403(b): Log into your plan portal or contact HR. Submit a new beneficiary designation form naming your chosen beneficiaries.

2. Employer group life insurance: Same process — submit a new beneficiary form through HR or your benefits portal.

3. Patient advocate designation: Execute a new document naming someone other than your ex to make medical decisions if you're incapacitated. Michigan uses "Patient Advocate Designation" rather than "Healthcare Power of Attorney."

4. Financial power of attorney: Execute a new durable power of attorney naming a trusted person to manage your finances if you become incapacitated.

Within 60 Days

5. Will: Even though Michigan auto-revokes your ex from your current will, execute a new will that affirmatively names your intended beneficiaries. Relying on the statutory default creates ambiguity and potential litigation.

6. Revocable living trust: If you have a trust, amend it to remove your ex as beneficiary and trustee. The statutory revocation covers this, but an explicit amendment eliminates any argument.

7. Individual life insurance policies: Policies you own personally (not through your employer) are covered by Michigan's auto-revocation, but update them anyway to name specific beneficiaries rather than relying on default rules.

Within 90 Days

8. Individual retirement accounts (IRAs): Update beneficiary designations at your custodian (Fidelity, Vanguard, Schwab, etc.). While IRAs aren't ERISA plans, proactively updating them avoids any ambiguity.

9. Transfer-on-death accounts: Bank accounts and brokerage accounts with TOD designations should be updated to reflect your new estate plan.

10. Real property deeds: If you own property as joint tenants with your ex (separate from the marital home already addressed in the decree), the joint tenancy has been severed by statute — but recording a new deed clarifies ownership for title companies and future sales.

What Happens If You Don't Update

The consequences are not theoretical. In the 2013 U.S. Supreme Court case Hillman v. Maretta, the Court confirmed that ERISA preempts state law — an ex-spouse named on a federal employee life insurance policy received the $124,000 death benefit over the deceased's current wife.

Michigan courts follow this principle. Without updated beneficiary forms, your employer-sponsored assets go to your ex, and your current family has no legal remedy.

How Long Does It Take?

Most beneficiary updates can be completed in a single afternoon:

• Employer 401(k) and life insurance: Online portal changes take effect immediately
• Patient advocate and power of attorney: Sign new documents before a notary (same day)
• Will and trust amendments: Requires drafting and execution, typically 1-2 weeks with an attorney or a few days with an online service

The Michigan After-Divorce Checklist includes a beneficiary audit worksheet covering every account type, with the specific forms and contact points for each institution.

See more Michigan guides →