There are several items that should be addressed after a divorce. One item that should be a priority for both parties is the revision of all estate planning documents. There are several reasons for doing this and issues to be addressed.
- Nonprobate assets. Non probate assets are assets that pass outside of a will. There are many different assets that are considered non-probate. Life insurance is one such asset. Life insurance, depending upon the type, may be governed by Texas law or federal law. Generally, under Texas law, an ex-spouse cannot receive the payout as a beneficiary of a life insurance policy if the designation was made prior to divorce. If the ex-spouse was the only designated beneficiary, this can complicate the payout process. Additionally, there are exceptions to this rule that can have surprising results. For example, if a life insurance policy falls under ERISA-based federal law, the beneficiary designation is strictly observed, even if that beneficiary is an ex-spouse.