- posted: Jan. 30, 2026
- Family Law
Sometimes, it can seem that divorce demands attention to an endless collection of details, which is why it is so important to retain an experienced attorney. While dealing with the emotions associated with a breakup, it can be easy to overlook something that must be done to unwind financial ties between you and your soon-to-be former spouse.
Many people own accounts or other assets that include a transfer-on-death designation or similar language. This means that when you pass away, the asset in question immediately becomes the property of the designee without even being transferred into your estate. Naturally, someone who is married is likely to direct what they leave behind to their husband or wife.
Circumstances can change though, and divorce often compels someone to change their intentions. Unfortunately, intentions are not enough to revise legal designations and the failure to execute a revision to a transfer-upon-death provision can result in a disposition that might not have aligned with the decedent’s wishes.
In the Matter of the Estate of Michael D. Jones, Deceased was a New Jersey Supreme Court matter arising from a divorce settlement where the Michael Jones agreed to pay his ex-wife, Jeanine, $200,000 over time. He passed away before the payment was complete. Upon his death, Jeanine redeemed U.S. Series EE savings bonds that Michael had purchased while they were wed, naming her as the payable-on-death beneficiary.
Combining the proceeds of the bond redemption with the money Michael had sent Jeanine during his lifetime essentially fulfilled the $200,000 obligation. When the representative for Michael’s estate asserted that Jeanine was not entitled to anything else under the divorce settlement agreement, Jeanine claimed that the bonds became her property once her ex died, and their value could not be applied to what was owed in the settlement.
Though New Jersey law generally authorizes the revocation of spousal transfer-upon-death designations when a couple divorces, there can be exceptions based on the specific instruments that govern the asset’s disposition. The New Jersey Supreme Court ruled that because the bonds at stake were purchased from the federal government, federal regulations would control. As no automatic divorce revocation exists in the pertinent regulation, the Court said that Jeanine, rather than the estate, was rightful owner of the bonds once Michael died, and that they would not be eligible for partial satisfaction of the settlement amount.
Should you divorce, conducting a thorough examination of financial obligations is critical. A skillful attorney can coordinate this process and minimize the chances that your former spouse receives a “double recovery” or control of any asset you wish to go to someone else.
Rehrer & Rehrer Attorneys at Law in Toms River advises New Jersey residents on full range of divorce matters, including complex property division issues. For an appointment, please call 732-279-0044 or contact us online. New clients can receive a free consultation.
- posted: Jan. 30, 2026
- Family Law
Sometimes, it can seem that divorce demands attention to an endless collection of details, which is why it is so important to retain an experienced attorney. While dealing with the emotions associated with a breakup, it can be easy to overlook something that must be done to unwind financial ties between you and your soon-to-be former spouse.
Many people own accounts or other assets that include a transfer-on-death designation or similar language. This means that when you pass away, the asset in question immediately becomes the property of the designee without even being transferred into your estate. Naturally, someone who is married is likely to direct what they leave behind to their husband or wife.
Circumstances can change though, and divorce often compels someone to change their intentions. Unfortunately, intentions are not enough to revise legal designations and the failure to execute a revision to a transfer-upon-death provision can result in a disposition that might not have aligned with the decedent’s wishes.
In the Matter of the Estate of Michael D. Jones, Deceased was a New Jersey Supreme Court matter arising from a divorce settlement where the Michael Jones agreed to pay his ex-wife, Jeanine, $200,000 over time. He passed away before the payment was complete. Upon his death, Jeanine redeemed U.S. Series EE savings bonds that Michael had purchased while they were wed, naming her as the payable-on-death beneficiary.
Combining the proceeds of the bond redemption with the money Michael had sent Jeanine during his lifetime essentially fulfilled the $200,000 obligation. When the representative for Michael’s estate asserted that Jeanine was not entitled to anything else under the divorce settlement agreement, Jeanine claimed that the bonds became her property once her ex died, and their value could not be applied to what was owed in the settlement.
Though New Jersey law generally authorizes the revocation of spousal transfer-upon-death designations when a couple divorces, there can be exceptions based on the specific instruments that govern the asset’s disposition. The New Jersey Supreme Court ruled that because the bonds at stake were purchased from the federal government, federal regulations would control. As no automatic divorce revocation exists in the pertinent regulation, the Court said that Jeanine, rather than the estate, was rightful owner of the bonds once Michael died, and that they would not be eligible for partial satisfaction of the settlement amount.
Should you divorce, conducting a thorough examination of financial obligations is critical. A skillful attorney can coordinate this process and minimize the chances that your former spouse receives a “double recovery” or control of any asset you wish to go to someone else.
Rehrer & Rehrer Attorneys at Law in Toms River advises New Jersey residents on full range of divorce matters, including complex property division issues. For an appointment, please call 732-279-0044 or contact us online. New clients can receive a free consultation.
