§ 5-1.4 Revocatory effect of divorce, annulment or declaration of
nullity, or dissolution of marriage on disposition, appointment,
provision, or nomination regarding a former spouse

(a) Except as provided by the express terms of a governing instrument,
a divorce (including a judicial separation as defined in subparagraph
(f)(2)) or annulment of a marriage revokes any revocable (1) disposition
or appointment of property made by a divorced individual to, or for the
benefit of, the former spouse, including, but not limited to, a
disposition or appointment by will, by security registration in
beneficiary form (TOD), by beneficiary designation in a life insurance
policy or (to the extent permitted by law) in a pension or retirement
benefits plan, or by revocable trust, including a bank account in trust
form, (2) provision conferring a power of appointment or power of
disposition on the former spouse, and (3) nomination of the former
spouse to serve in any fiduciary or representative capacity, including
as a personal representative, executor, trustee, conservator, guardian,
agent, or attorney-in-fact.

(b)(1) Provisions of a governing instrument are given effect as if the
former spouse had predeceased the divorced individual as of the time of
the revocation.

(2) A disposition, appointment, provision, or nomination revoked
solely by this section shall be revived by the divorced individual's
remarriage to the former spouse.

(c) Except as provided by the express terms of a governing instrument,
a divorce (including a judicial separation as defined in subparagraph
(f)(2)) or annulment of a marriage severs the interests of the divorced
individual and the former spouse in property held by them at the time of
the divorce or annulment as joint tenants with the right of
survivorship, transforming their interests into interests as tenants in
common.

(d)(1) A payor or other third party is not liable for having made a
payment or transferred an item of property or any other benefit to a
beneficiary (including a former spouse) designated in a governing
instrument affected by a divorce, annulment, or remarriage, or for
having taken any other action in good faith reliance on the validity of
the governing instrument, before the payor or other third party received
written notice of the divorce, annulment, or remarriage.

(2) Written notice of a divorce, annulment, or remarriage under
subparagraph (1) must be mailed to the payor's or other third party's
main office or home by registered or certified mail, return receipt
requested, or served upon the payor or other third party in the same
manner as a summons in a civil action and may be filed with the
secretary of state if real property or a cooperative apartment is
affected. Upon receipt of written notice of the divorce, annulment, or
remarriage, a payor or other third party may pay any amount owed or
transfer or deposit any item of property held by it or with the court
having jurisdiction of the probate proceedings relating to the
decedent's estate or, if no proceedings have been commenced, to or with
the court having jurisdiction over the divorce, the real property or
cooperative apartment, securities, bank accounts or other assets
affected by the divorce or annulment under this section. The court shall
hold the funds or item of property and, upon its determination under
this section, shall order disbursement or transfer in accordance with
the determination. Payments, transfers, or deposits made to or with the
court discharge the payor or other third party from all claims for the
value of amounts paid to or items of property transferred to or
deposited with the court.

(e) A person who purchases property from a former spouse or any other
person for value and without notice, or who receives from a former
spouse or any other person, a payment or other item of property in
partial or full satisfaction of a legally enforceable obligation, is
neither obligated under this section to return the payment, item of
property or benefit, nor is liable under this section for the amount of
the payment or the value of the item of property or benefit. But a
former spouse or other person who, not for value, received a payment,
item of property or any other benefit to which that person is not
entitled under this section is obligated to return the payment, item of
property or benefit, with interest thereon, to the person who is
entitled to it under this section.

(f) For purposes of this section, the following terms shall have the
following meaning and effect:

(1) "Disposition or appointment of property" includes a transfer of an
item of property or any other benefit to a beneficiary designated in a
governing instrument.

(2) "Divorce or annulment" means a final decree or judgment of divorce
or annulment, or a final decree, judgment or order declaring the nullity
of a marriage or dissolving such marriage on the ground of absence,
recognized as valid under the law of this state, or a "judicial
separation," which means a final decree or judgment of separation,
recognized as valid under the law of this state, which was rendered
against the spouse.

(3) "Divorced individual" includes an individual whose marriage has
been annulled or subjected to a judicial separation.

(4) "Former spouse" means a person whose marriage to the divorced
individual has been the subject of a divorce, annulment, or judicial
separation.

(5) "Governing instrument" includes, but is not limited to, a will,
testamentary instrument, trust agreement (including, but not limited to
a totten trust account under 7-5.1(d)), insurance policy, thrift,
savings, retirement, pension, deferred compensation, death benefit,
stock bonus or profit-sharing plan, account, arrangement, system or
trust, agreement with a bank, brokerage firm or investment company,
registration of securities in beneficiary form pursuant to part 4 of
article 13 of this chapter, a court order, or a contract relating to the
division of property made between the divorced individuals before or
after the marriage, divorce, or annulment.

(6) "Revocable," with respect to a disposition, appointment,
provision, or nomination, means one under which the divorced individual,
at the time of the divorce or annulment, was empowered, by law or under
governing instrument, either alone or in conjunction with any other
person who does not have a substantial adverse interest, to cancel the
designation in favor of the former spouse, whether or not the divorced
individual was then empowered to designate himself or herself in place
of the former spouse and whether or not the divorced individual then had
the capacity to exercise the power.