Divorce can result in many different things: hard feelings, divided assets, kids splitting time between two houses, and lots of attorneys fees. One thing that doesn’t automatically happen, however, if changing your beneficiary designation on your life insurance policies.
Divorce Cuts Off Inheritance
North Carolina law precludes an ex-spouse from inheriting from your estate. For the purposes of inheritance, it treats an ex-spouse as a predeceased beneficiary if the ex-spouse is still named as a beneficiary of your will. So, legally speaking, it’s as if your ex is dead for the purposes of inheriting from your estate – it’s a legal impossibility.
But Nothing Else
North Carolina law does not, however, cut off your ex-spouse’s rights to receive a benefit from your death in other ways, including retirement accounts in life insurance. Unless the separation agreement states otherwise, if you were to pass without removing your ex-spouse from your life insurance beneficiary designation, they may get the entire benefit, to the detriment of your kids or extended family.
Review Beneficiary Designations Often
A crucial part of maintaining an effective estate plan is regularly reviewing and updating where needed. Divorce is a substantial life event which warrants an update to your plan, but it also requires an update to your life insurance beneficiary designations. Death can also impact your designations. Regardless of your circumstances, reviewing your designations, and the rest of your estate plan, regularly is a smart move.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
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Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
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