A divorce can be grueling is transformed by law, probate, and insurance decisions made prior to divorce. It is important to know exactly what will happen to your will and life insurance if this misfortune happens to befall your family. The family unit is important and if it is fractured the question of what happens to “my will”, “my life insurance”, or “my trust” is a relevant and important one that needs to be answered.
If you are divorced from your spouse then your previous will may be in many aspects considered revoked automatically. Under the Texas Estate Code § 123.001 after a valid divorce, all provisions in a will, including all fiduciary appointments, shall be read as if the former spouse and each relative of the former spouse who is not a relative of the testator failed to survive the testator, unless the will expressly provides otherwise. The translation of this states: if you receive a valid divorce then your will is in many respects revoked and your spouse and stepchildren will receive nothing from the previous will. The one exception is if the will explicitly states that in case of divorce the previous spouse or children will still inherit. This revocation applies to fiduciary appointments as well. For instance if you have a trust and your spouse is the trustee, then she will be revoked from the trust in its entirety.
If you divorce your spouse, then your spouse’s beneficiary status pertaining to your life insurance will be automatically revoked. Texas Family Code § 9.301 states an automatic revocation upon divorce and lists three exceptions:
- If the divorce decree names the former spouse as a beneficiary
- The individual adds the divorced spouse as a beneficiary to the policy after the divorce
- The former spouse receives the life insurance as a “guardian” of the children
These are the exceptions for life insurance. If you decide to divorce your spouse unless further action is taken, the spouse will not benefit from your death regarding the life insurance.
Finally, the inheritance of a divorced spouse in reference to a trust depends on whether the trust is revocable or irrevocable. If you have set up a Revocable Trust then after the divorce your prior spouse will automatically lose his/her beneficiary status within the trust. On the other hand, if you set up an Irrevocable Trust then regardless of a divorce the prior spouse will still inherit and be considered a valid beneficiary. A divorce will have no effect on an Irrevocable Trust. If you decide to create an irrevocable trust, be sure to understand that your spouse will inherit the assets in the trust even after a divorce.
In a Texas divorce, the law protects you from unchecked gifts to your prior spouse and stepchildren with regard to your will, life-insurance, and revocable trusts. The prior spouse will not take from these unless one of the few exceptions apply. Divorces are riddled with complexities and it is prudent to seek advice from an experienced Texas divorce attorney during these proceedings to ensure that the divorced spouse is removed completely from your will and does not reserve an argument to acquire your assets post-divorce .
Two New Family Case laws have been passed by the Texas legislature and signed by Governor Abbott, effective 9/1/2019:
HB553 Relating to notice summer weekend possession of a child under a standard possession order in a suit affecting the parent-child relationship.
SECTION 1. Section 153.312, Family Code, is amended by adding subsection (c) to read as follows:
(c) Notwithstanding Section 153.316, after receiving notice from the managing conservator under Subsection (b)(3) of this section designating the summer weekend during which the managing conservator is to have possession of the child, the possessory conservator, not later than the 15th day before Friday that begins that designated weekend, must give the managing conservator written notice of the location at which the managing conservator is to pick up and return the child.
SECTION 2. Section 153.312 (c), Family Code, as added by this Act, applies only to a court order providing for possession of or access to a child rendered on or after the effective date of this Act. A court order rendered before the effective date on this Act is governed by the law in effect on the date the order was rendered, and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2019
HB House Bill 558: Relating to the court ordered support for a child with disability:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 154.302, Family Code, is amended by adding Subsection (c) to read as follows:
(c) notwithstanding Subsection (b), a court that orders support under this section for an adult child with a disability may designate a special needs trust and provide that the support may be paid directly to the trust for the benefit of the adult child. The court shall order that support payable to a special needs trust under this subsection be paid directly to the trust and may not order that the support be paid to the state disbursement unit. This subsection does not apply in a Title IV-D case.
SECTION 2. The change in law made by this Act constitutes a material and substantial change of circumstance under Section 156.401, Family Code, sufficient to warrant modification of a court order or a portion of a decree that provides support for a child rendered before the effective date of this Act.
Section 3. This Act takes effect on September 1, 2019
More new Texas Legislature Family Laws to come!
The Nacol Law Firm P.C. is committed to helping parents have the right to have frequent and continuing contact with their child.
Sometimes you can settle, SOMETIMES YOU FIGHT FOR YOUR RIGHT!
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Fathers Rights and Interstate Jurisdiction Attorneys – Dallas Tx