Montana's MCA § 72-2-814 automatically revokes an ex-spouse's beneficiary designation on most non-ERISA assets the moment a divorce decree is entered. However, federal ERISA plans like 401(k)s and employer life insurance override this state law, meaning you must manually file a new beneficiary form. The divorce filing fee is $250, and the decree cannot enter until 21 days after service.
Key Facts: Changing Beneficiaries in a Montana Divorce
| Factor | Montana Detail |
|---|---|
| Filing Fee | $250 ($200 filing + $50 judgment fee) under MCA § 25-1-201 |
| Waiting Period | 21 days after service before decree (MCA § 40-4-105(3)) |
| Residency Requirement | 90 days domicile under MCA § 40-4-104 |
| Grounds | No-fault only — marriage irretrievably broken |
| Property Division Type | Equitable distribution (not community property) |
| Auto-Revocation Statute | MCA § 72-2-814 |
As of June 2026. Verify all fees with your local Clerk of District Court before filing.
How Montana's Automatic Beneficiary Revocation Works
Montana automatically revokes a former spouse's beneficiary designation upon divorce under MCA § 72-2-814, part of the state's Uniform Probate Code framework. The statute treats your ex-spouse as having died before you, voiding their designation on wills, payable-on-death accounts, and most life insurance policies. This revocation takes effect automatically when the court enters the dissolution decree — you do not file a separate document.
The statute covers what it calls any "disposition or appointment of property" to a beneficiary in a governing instrument. A governing instrument means any document — a will, trust, insurance policy, or account form — executed before the divorce. When you change beneficiary designations during divorce in Montana, the law provides this safety net so that a forgotten form does not send your assets to a former spouse. The revocation also extends to fiduciary and power-of-attorney appointments naming the ex-spouse.
Important exception: a decree of separation that does not terminate the marriage is not a "divorce" under the statute. The status of husband and wife must actually end for revocation to trigger.
Why ERISA Overrides Montana Law on 401(k) and Pension Beneficiaries
Federal ERISA law preempts Montana's revocation statute for employer-sponsored retirement plans, so a 401k beneficiary divorce change requires manually filing a new plan form. In Egelhoff v. Egelhoff (2001), the U.S. Supreme Court ruled 7-2 that ERISA's "plan documents rule" forces administrators to pay whoever is named on file — even an ex-spouse — regardless of any state auto-revocation statute. Montana's MCA § 72-2-814 cannot touch these accounts.
The Supreme Court reinforced this in Kennedy v. Plan Administrator for DuPont Savings (2009), a unanimous 9-0 decision. The Court held that even a divorce decree in which the ex-spouse waived all rights to the pension did not bind the plan administrator. The administrator correctly paid the ex-wife because she remained the named beneficiary in the plan documents. A waiver in a Montana divorce decree, no matter how clear, does not change who receives an ERISA 401(k) or pension.
The practical lesson is direct: after your Montana divorce, you must affirmatively file a new beneficiary designation form with your 401(k) plan, pension, or employer life insurance carrier. Montana's automatic statute will not protect you, and your divorce decree alone will not redirect these federally governed funds.
How to Change Your Life Insurance Beneficiary After Divorce
For a privately purchased policy, a life insurance beneficiary divorce change in Montana happens automatically under MCA § 72-2-814 — but you should still file a new form because the statute has gaps. The Montana Supreme Court confirmed in Thrivent Financial for Lutherans v. Andronescu, 300 P.3d 117 (2013), that Title 72 applies to life insurance designations where the policyholder dies after the statute's effective date. Automatic revocation works for individually owned policies.
The statute protects insurers who pay before receiving notice. Under MCA § 72-2-814, an insurer is not liable for paying a former-spouse beneficiary until two or more business days after it receives written notice of the divorce. That notice must be mailed by registered or certified mail, return receipt requested, identifying the decedent, the claimant, and the divorce. Without proper notice, a fast-acting insurer could still pay your ex.
To change a life insurance beneficiary after a Montana divorce: contact your insurer, request a change-of-beneficiary form, name your new beneficiary (often children, a trust, or a parent), sign and return it, and keep the confirmation. Employer-provided group life insurance is ERISA-governed and is NOT auto-revoked — it must be changed manually like a 401(k).
Changing Bank Account and POD Beneficiaries
A bank account beneficiary divorce update in Montana is automatic for payable-on-death (POD) and transfer-on-death (TOD) designations under MCA § 72-2-814, which voids the ex-spouse's interest upon the decree. These nonprobate transfers fall squarely within the statute's reach because they pass outside of probate by contract. The moment the dissolution decree enters, your former spouse is treated as predeceased for POD and TOD purposes.
Despite automatic revocation, you should manually update each account because the bank, like an insurer, is shielded if it pays before receiving written notice of your divorce. The statute imposes no duty on the bank to investigate your marital status. A bank may release funds to your named ex-spouse in good faith reliance on its records until it is formally notified in the manner the statute requires — registered or certified mail to its main office.
Jointly titled accounts with rights of survivorship are different from POD designations. A joint bank account typically passes to the surviving joint owner regardless of beneficiary forms, so you must close or retitle joint accounts during the divorce. Address each account type separately: close joint accounts, then file fresh POD designations naming your chosen beneficiaries on individual accounts.
Updating IRA and Retirement Account Beneficiaries
An IRA beneficiary divorce change in Montana is partially automatic but requires manual confirmation, because IRAs are individually owned and generally NOT governed by ERISA preemption. Traditional and Roth IRAs are personal accounts, so Montana's MCA § 72-2-814 auto-revocation can apply to the ex-spouse designation. However, IRA custodians follow their own contract terms and the notice-protection rules, so you must file a new beneficiary form to be certain.
The distinction between IRAs and 401(k)s is critical. A 401(k) is an employer-sponsored ERISA plan governed by the Egelhoff and Kennedy plan-documents rule, so it is never auto-revoked and always requires a new form. An IRA you opened yourself at a brokerage is not ERISA-governed in the same way, so state revocation can reach it — but custodian contracts and the two-business-day notice shield in MCA § 72-2-814 still make manual updates essential.
For dividing retirement accounts in the divorce itself, a Qualified Domestic Relations Order (QDRO) is the federal mechanism. A QDRO is the statutory exception to ERISA's anti-alienation rule and is the only way to assign a portion of a 401(k) or pension to an ex-spouse as part of property division. Changing a future beneficiary is separate from a QDRO dividing the current balance.
Montana Divorce Timeline and Filing Process
Montana divorce costs $250 to file and takes a minimum of 21 days after service before the court can enter a decree under MCA § 40-4-105(3). At least one spouse must have been domiciled in Montana for 90 days before filing under MCA § 40-4-104. Montana is a pure no-fault state — the only ground is that the marriage is "irretrievably broken," shown by 180 days of separation or serious marital discord.
The $250 fee breaks down as a $200 filing fee plus a $50 judgment fee under MCA § 25-1-201. A respondent who files an answer pays an additional $70. If you cannot afford the fee, Montana offers a Statement of Inability to Pay Court Costs that a District Court judge must approve. As of June 2026, verify the exact amount with your local Clerk of District Court, as fees vary slightly across Montana's 56 counties.
Montana also offers Summary Dissolution under MCA § 40-4-130 for qualifying couples — no minor children (or an agreed parenting plan), no real property, mutual agreement, and waiver of appeal rights — which can finalize in as little as 20 days. Beneficiary changes should happen alongside this process, since automatic revocation only triggers once the final decree enters.
Comparison: Which Assets Auto-Revoke vs. Require Manual Change
| Asset Type | Auto-Revoked Under MCA § 72-2-814? | Action Required |
|---|---|---|
| Individual life insurance | Yes (automatic) | File new form to be safe |
| Employer/group life insurance (ERISA) | No (federal preemption) | Manual form required |
| 401(k) / pension (ERISA) | No (Egelhoff/Kennedy rule) | Manual form required |
| Traditional/Roth IRA | Yes (generally) | File new form to confirm |
| POD/TOD bank accounts | Yes (automatic) | Notify bank in writing |
| Joint survivorship accounts | No (passes by title) | Close or retitle account |
| Will / probate transfers | Yes (automatic) | Execute new will |
As of June 2026. ERISA-governed plans always require manual beneficiary changes regardless of Montana law.
Practical Steps to Protect Your Assets
To fully change beneficiaries during a Montana divorce, complete a written inventory of every account and policy, then update each one individually rather than relying solely on automatic revocation. Start with all ERISA-governed accounts — employer 401(k)s, pensions, and group life insurance — because these are never auto-revoked and require a new plan form filed directly with the administrator. Confirm receipt of each form in writing.
Next, send formal written notice of your divorce to every insurer and bank by registered or certified mail, return receipt requested, as MCA § 72-2-814 requires. This notice triggers the two-business-day liability window and stops a payor from releasing funds to your ex-spouse in good faith reliance on outdated records. Keep the green return-receipt cards as proof of delivery for each institution.
Finally, execute a new will, update powers of attorney and health-care directives, retitle or close joint accounts, and consult an attorney about a QDRO if retirement-account division is part of your property settlement. Montana's automatic revocation is a backstop, not a substitute for proactively reissuing every designation. Acting promptly closes the gaps the statute leaves open.