When navigating a divorce, many people are unaware of how their estate plans and beneficiary designations may be impacted. In North Carolina, specific laws govern inheritance rights both during and after the divorce process. It’s essential to understand how these laws work to protect your assets and ensure that your intentions are honored. If you would like to discuss your particular situation with a Greensboro, NC divorce lawyer, The Spagnola Law Firm is here to help.
Effect Of Divorce On Inheritance Rights
In North Carolina, once a divorce is finalized, all rights to inherit from the other spouse are automatically terminated. This rule applies whether or not a will exists. If a spouse had previously been named in a will, the final divorce decree overrides those provisions. As such, your ex-spouse will not be able to inherit under your will or under state intestacy laws (which govern how assets are distributed when someone dies without a will).
However, it’s important to note that while divorce severs most legal ties between spouses, it does not automatically revoke beneficiary designations on certain financial instruments. This includes pay-on-death accounts, life insurance policies, retirement accounts, and similar assets. If your ex-spouse is still listed as the beneficiary on these accounts, they may still receive the proceeds unless you update your documents.
Impact Of Separation Before Divorce Is Final
Legal separation, even if it’s lengthy, does not terminate inheritance rights in North Carolina. Until a divorce decree is entered, your spouse retains the legal right to a portion of your estate—even if you are no longer living together or are in active divorce litigation. This remains true regardless of whether your spouse is named in your will or whether equitable distribution claims are pending in court.
This means that if you pass away while separated but before the divorce is final, your estranged spouse could still claim a share of your estate. The only ways to effectively waive these inheritance rights are through a final divorce decree or a valid written agreement between the spouses.
Using Written Agreements To Waive Estate Rights
A common way to prevent a spouse from inheriting during the separation period is through a written waiver. These waivers are typically included in property settlement agreements, which often contain language that explicitly revokes inheritance rights. However, a standalone waiver focused solely on estate rights can also be executed if a broader settlement has not yet been reached.
For any waiver to be valid, it must be mutually agreed upon and signed by both parties. Unilateral action is not enough—both spouses must consent in writing. Without this agreement, the surviving spouse will retain the right to claim a share of the deceased spouse’s estate, regardless of the stage of the divorce proceedings.
Consult With An Attorney
If you are going through a separation or divorce, it is critical to consult with a family law or estate planning attorney to ensure your estate is protected. They can help you create or update a will, change beneficiary designations, and draft any necessary waivers or agreements.
Failing to take proactive steps could result in unintended consequences—such as an ex-spouse receiving a portion of your estate. Understanding your rights and responsibilities during this transition is key to securing your legacy. If you would like to learn more about protecting your estate or other family law issue, reach out to The Spagnola Law Firm today.