Divorce is a profound chapter of emotional and financial changes, ushering in a new set of priorities, goals, and plans for the future. A careful review and thoughtful refresh of your estate plans is essential. Failing to update your will, trust, and beneficiary designations after divorce may leave behind a legacy that no longer reflects your current wishes. This article offers a brief, step-by-step guide on revising your estate plans after divorce.

Revoke Your Will & Execute A New Will

Your last will and testament outlines how you wish your property to be distributed after your passing. It may also include designations for Power of Attorney (POA) and the guardianship of your children.

Divorce does not automatically revoke an entire will. However, under California law, divorce revokes any provisions in the will that nominate your former spouse as executor, trustee, conservator, or guardian—unless the will expressly provides otherwise.

Your new will must include a clear and unambiguous statement that it supersedes and effectively replaces all prior wills. In the event of divorce, it’s imperative that your divorce attorney amend your estate plan to ensure that your existing will is revoked and your new will is executed properly and in accordance with California law.

Nominate An Executor And Update Beneficiaries

According to California law, if your ex-spouse was named as a beneficiary in your will, their designation would be revoked upon divorce, meaning they would no longer be entitled to any assets from your estate upon your death. Similarly, if your ex-spouse was appointed as the executor of your estate, divorce would revoke their authority to administer it.

In California, children have a legal right to inherit from their biological parents unless otherwise specified in a will or trust.

Your new will should name an executor and beneficiaries that reflect your current wishes.

Update Guardianship Of Minor Children

Parents often designate guardians in their wills to ensure that their minor children are cared for in the event of their death.

The California Family Code states that “if one parent is dead, is unable or refuses to take custody, or has abandoned the child, the other parent is entitled to custody of the child.”

Your will should also address scenarios in which the other parent is unfit, unavailable, or has also passed away. If your existing will designated an individual or relative connected to your ex-spouse or their side of the family, you may wish to change that after divorce. Working with a family attorney will ensure that your new will reflects your up-to-date intentions regarding guardianship.

Update Your Living Trust With An Amendment Or Restatement

When an individual passes away, their will is processed through probate, a court-supervised procedure of validating the will, settling debts, and distributing assets to beneficiaries. Probate can be rather time-consuming and costly, which is why many choose to include a revocable living trust in their estate plan.

A revocable living trust is a legal arrangement in which the trustor grants the trustee the authority to manage assets for the benefit of named beneficiaries. A trust may take effect during the life of the trustor, and assets placed in a trust during the life of the trustor do not go through probate and can be passed directly to your beneficiaries.

In California, spousal provisions in a revocable trust are not automatically revoked upon divorce. If your ex-spouse was named as a trustee or beneficiary in your revocable trust, those provisions remain valid unless you amend or restate the trust.

To keep your trust aligned with your wishes, it is important to update the trustee and beneficiary designations after your divorce with a written amendment. If you wish to make substantial changes to your trust, it may be more effective to have the entire trust rewritten and replaced by your attorney through a trust restatement.

Plan For Jointly Owned Business Or Property

Businesses, real estate, and other assets acquired during marriage are considered marital property and must be divided in a divorce per California’s community property laws. Division typically involves either selling the asset and splitting the proceeds or, in the case of a business, arranging for one spouse to buy out the other’s share.

If your existing trust includes marital assets or assets of joint ownership, it is essential to amend the trust to accurately reflect the assets you now legally own and clearly specify how those assets will be distributed to your chosen beneficiaries upon your death.

If you and your ex-spouse are to remain co-owners of a business after divorce, your will or trust should specify what should happen to your share of the business upon your passing. You may wish for your ownership interest to be transferred to designated beneficiaries, or you may prefer for your share to be sold, with the proceeds distributed to your designated beneficiaries.

Change Beneficiary Designations On Financial Accounts, Retirement Plans, & Life Insurance

Your 401(k), IRA, pension, and other financial assets acquired during the course of marriage are generally split in a divorce under California community property laws. However, changes to your marital status do not automatically change beneficiary designations on bank accounts, investment accounts, or retirement plans. Similarly, divorce does not automatically remove your ex-spouse as a beneficiary from your life insurance policy, meaning that if your ex-spouse is a beneficiary, the insurance company is legally required to pay out the benefit to them upon your death.

You must contact each institution directly and file the appropriate paperwork to update your beneficiary designations.

Some divorce settlements may require that you keep your ex-spouse as a beneficiary of life insurance policies and retirement accounts.

A judge writes at a desk with a Lady Justice statue, a gavel, and books on trusts and wills in the foreground; bookshelves are in the background.

Execute A New Power of Attorney

A Power Of Attorney is a legal document that authorizes an agent (attorney-in-fact) to decide and act on behalf of the principal in regards to finances and medical care.

If your will designated your ex-spouse as your Healthcare Power of Attorney (Medical POA) or Financial Power of Attorney (Durable POA), these would be automatically revoked upon divorce under California law.

Therefore, it’s important to have your attorney prepare a new Power Of Attorney that names a trusted individual as the agent. Your new Medical POA and Financial POA should be shared with your healthcare provider and financial institutions to ensure they are notified of the changes.

Call Kaspar & Lugay Family Lawyers To Update Your Estate Plans After Divorce

At Kaspar & Lugay LLP, our family law attorneys understand the complexities of divorce and its far-reaching implications for estate planning. We work closely with clients to address their concerns proactively, helping them understand their legal rights and make informed decisions about their future. Estate planning is more than just paperwork—it’s crucial to protecting your legacy.

Our experienced legal team is here to provide effective and compassionate legal support, update your estate plan with confidence, and protect your family’s interests for years to come.

Call Us Today: 415-789-5881

A Guide To Updating Wills, Trusts, And Beneficiary Designations After Divorce In California