How Will My Divorce Affect My Estate Plan?

A divorce or an annulment can have a significant effect on prior estate planning documents.

Colorado law provides that a divorce or annulment of a marriage automatically revokes gifts (“bequests”) of property or assets to the ex-spouse and the ex-spouse’s relatives in a will or revocable trust (executed prior to the divorce or annulment).[1] The law provides that a divorce or annulment will revoke beneficiary designations for life insurance policies, investment and annuity policies, and certain retirement accounts.[2] Similarly, if you named your former spouse as your personal representative, executor, trustee, conservator, agent or guardian, those designations are revoked upon divorce or annulment of your marriage.[3]

The divorce or annulment also converts any joint ownership of real property from joint tenants with rights of survivorship into ownership as tenants in common.[4]  

If you recently went through a divorce or received an annulment of your marriage, it is extremely important to consult with an estate planning attorney about updating your will or other estate planning documents. It is also important to ensure that your beneficiary designations on all insurance policies, retirement accounts, payable on death (POD) and transfer on death (TOD) accounts are updated to align with your wishes following a divorce or annulment.  

[1] C.R.S. §15-11-804(2)

[2] C.R.S. §15-11-804(2)(a)(i); 15-10-201(22); but note that retirement plans covered under the Federal Employee Retirement Income Security Act of 1974 (ERISA) are subject to federal law.

[3] C.R.S. §15-11-804(2)(a)

[4] C.R.S. §15-11-804(2)(b)