October is the season of ghost stories, but some of the scariest hauntings don’t happen in old houses. They show up in forgotten paperwork: outdated wills, trusts, and beneficiary forms that keep an ex-spouse’s name alive long after the marriage has ended.
Most people think of divorce as a clean break. The property is divided, the decree is signed and everyone moves forward. But in family law, unfinished paperwork can come back to haunt a family years later. If wills or account beneficiaries aren’t updated, an ex can sometimes still inherit property, collect life insurance proceeds, or access retirement accounts that were never changed after the divorce.
These situations happen more often than you’d think. Nebraska courts have seen cases where a former spouse received a large life insurance payout because the policyholder never updated the beneficiary. Judges don’t speculate or try to assume what someone meant to do. Rather, they follow what’s written. A divorce decree may divide assets, but it does not automatically update every policy, deed, or account.
That means if your 401(k), insurance policy, or bank account still lists your ex, that person may still receive the proceeds, even if your will indicates otherwise. In most cases, beneficiary designations override what’s written in a will. That’s the part that tends to surprise people the most.
The good news is that these paperwork hauntings are easy to prevent. After a divorce, or any major life change such as a remarriage, a new baby, or a move, it’s smart to review your estate plan, insurance policies, and retirement accounts. Make sure the right people are named, and that your documents match your current wishes.
Taking time to clean up those details protects your family from future conflict and confusion. It also ensures that your legacy reflects the life you’re living now, not the one you left behind.
So, this Halloween season, when you think about things that go bump in the night, remember the ghosts that live in filing cabinets too. A little proactive planning can keep your family’s story from turning into a legal nightmare.
At McGill Law, we help families across Nebraska navigate divorce, estate matters, and the many legal details that come with change. Our goal is simple: to make sure your future stays free of legal ghosts and full of peace of mind.
If you have questions about updating your will, reviewing beneficiary documents, or planning for what comes next, call 402-548-5418 or contact us to schedule a consultation.