How to Update Beneficiaries After Divorce in New York

New York law automatically revokes your ex-spouse as a beneficiary on certain accounts when your divorce is finalized. This gives many people a false sense of security — because the law has a massive gap that could send your entire retirement savings to your ex if you die without making one manual update.

Here's what's actually protected, what isn't, and exactly what you need to do.

What EPTL § 5-1.4 Does (and Doesn't) Cover

New York's Estates, Powers and Trusts Law § 5-1.4 automatically revokes dispositions to a former spouse upon divorce. Under this statute, your ex is treated as if they predeceased you as of the date of your final Judgment of Divorce. This covers:

• Wills — spousal bequests and nominations as executor are revoked
• Revocable trusts — distributions and trustee appointments naming your ex are nullified
• Transfer-on-death (TOD) and pay-on-death (POD) accounts — spousal designations are revoked
• Power of attorney and health care proxy — your ex's authority is automatically terminated
• Life insurance policies (non-ERISA) — spousal beneficiary designations are revoked

This sounds comprehensive. It isn't.

The ERISA Preemption Trap

Federal law overrides state law for employer-sponsored retirement plans. Under the Employee Retirement Income Security Act (ERISA), plan administrators are legally required to pay benefits to whoever is named on the beneficiary designation form — regardless of any state statute, divorce decree, or separation agreement.

This means your 401(k), 403(b), and employer-sponsored group life insurance are not protected by EPTL § 5-1.4. If your ex is still named as the beneficiary on these accounts and you die, the plan administrator must pay your ex. They can legally keep every dollar.

The U.S. Supreme Court has ruled on this directly. State divorce revocation laws cannot override ERISA beneficiary designations. The only way to change the beneficiary on an ERISA-governed plan is to file a new beneficiary designation form directly with the plan administrator.

Your Action Checklist

Accounts requiring manual beneficiary updates (ERISA-governed):

• [ ] 401(k) — file new Beneficiary Designation Form with your plan administrator
• [ ] 403(b) — same process as 401(k)
• [ ] Employer-sponsored group life insurance — update through HR
• [ ] Employer-sponsored disability insurance — update through HR

Accounts automatically revoked by EPTL § 5-1.4 (but still worth updating manually):

• [ ] Individual life insurance policies
• [ ] IRAs (Traditional and Roth)
• [ ] TOD brokerage accounts
• [ ] POD bank accounts
• [ ] Annuities

Even though EPTL § 5-1.4 revokes these designations by operation of law, financial institutions may not know about your divorce. A company that pays out to your ex before receiving written notice of the divorce is protected from liability under EPTL § 5-1.4(d). The safest approach: send each institution a certified copy of your divorce decree along with a new beneficiary designation form.

Don't Forget the In-Laws

EPTL § 5-1.4 revokes designations to your former spouse only. It does not revoke designations to your former spouse's relatives. If your will names your ex's sister as a backup executor, or your trust lists your former mother-in-law as a contingent beneficiary, those designations survive the divorce intact.

Review every estate document for any mention of your former spouse's family members and update accordingly.

The Timeline

Update your ERISA beneficiary designations immediately — within the first week after your divorce is finalized. These are the highest-risk accounts because federal preemption means the law will not protect you if you delay.

For a complete beneficiary audit worksheet covering every account type — plus pre-written notification templates for each institution — see the New York After-Divorce Guide.

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