§ 30.1-10-04 — (2-804) Revocation of probate and nonprobate transfers by divorce - No revocation by other changes of circumstances

revocation by other changes of circumstances.
1. In this section:
a. "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.
b. "Divorce or annulment" means any divorce or annulment, or any dissolution or
declaration of invalidity of a marriage, that would exclude the spouse as a
surviving spouse within the meaning of section 30.1-10-02. A decree of
separation that does not terminate the status of husband and wife is not a divorce
for purposes of this section.
c. "Divorced individual" includes an individual whose marriage has been annulled.
d. "Governing instrument" means a governing instrument executed by the divorced
individual before the divorce or annulment of the marriage to the former spouse.
e. "Relative of the divorced individual's former spouse" means an individual who is
related to the divorced individual's former spouse by blood, adoption, or affinity
and who, after the divorce or annulment, is not related to the divorced individual
by blood, adoption, or affinity.
f. "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 alone empowered, by law or under the governing instrument, to
cancel the designation in favor of the former spouse or former spouse's relative,
whether or not the divorced individual was then empowered to designate the
divorced individual in place of the former spouse or in place of the former
spouse's relative and whether or not the divorced individual then had the capacity
to exercise the power.
2. Except as provided by the express terms of a governing instrument, a court order, or a
contract relating to the division of the marital estate made between the divorced
individuals before or after the marriage, divorce, or annulment, the divorce or
annulment of a marriage:

a. Revokes any revocable disposition or appointment of property made by a
divorced individual to the individual's former spouse in a governing instrument
and any disposition or appointment created by law or in a governing instrument to
a relative of the divorced individual's former spouse, provision in a governing
instrument conferring a general or special power of appointment on the divorced
individual's former spouse or on a relative of the divorced individual's former
spouse, and nomination in a governing instrument, nominating a divorced
individual's former spouse or a relative of the divorced individual's former spouse
to serve in any fiduciary or representative capacity, including a personal
representative, executor, trustee, conservator, agent, or guardian.
b. Severs the interests of the former spouses in property held by them at the time of
the divorce or annulment as joint tenants with the right of survivorship,
transforming the interests of former spouses into equal tenancies in common.
3. A severance under subdivision b of subsection 2 does not affect any third-party
interest in property acquired for value and in good-faith reliance on an apparent title by
survivorship in the survivor of the former spouses unless a writing declaring the
severance has been noted, registered, filed, or recorded in records appropriate to the
kind and location of the property which are relied upon, in the ordinary course of
transactions involving such property, as evidence of ownership.
4. Provisions of a governing instrument are given effect as if the former spouse and
relatives of the former spouse disclaimed all provisions revoked by this section or, in
the case of a revoked nomination in a fiduciary or representative capacity, as if the
former spouse and relatives of the former spouse died immediately before the divorce
or annulment.
5. Provisions revoked solely by this section are revived by the divorced individual's
remarriage to the former spouse or by a nullification of the divorce or annulment.
6. No change of circumstances other than as described in this section and in section
30.1-10-03 effects a revocation.
7. a. A payer 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 designated in a governing
instrument affected by a divorce, annulment, or remarriage, or for having taken
any other action in reliance on the validity of the governing instrument, before the
payer or other third party received written notice of the divorce, annulment, or
remarriage. A payer or other third party does not have a duty or obligation to
inquire as to the continued marital relationship between the decedent and a
beneficiary or to seek any evidence with respect to a marital relationship. A payer
or other third party is only liable for actions taken two or more business days after
the actual receipt by the payer or other third party of written notice. The payer or
other third party may be liable for actions taken pursuant to the governing
instrument only if the form of service is that described in subdivision b.
b. The written notice must indicate the name of the decedent, the name of the
person asserting an interest, the nature of the payment or item of property or
other benefit, and a statement that a divorce, annulment, or remarriage of the
decedent and the designated beneficiary occurred. Written notice of the divorce,
annulment, or remarriage under this subdivision must be mailed to the payer's or
other third party's main office or home by registered mail or served upon the
payer or other third party in the same manner as a summons in a civil action.
Upon receipt of written notice of the divorce, annulment, or remarriage, a payer or
other third party may pay any amount owed or transfer or deposit any item of
property held by it to 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 of probate proceedings
relating to decedents' estates located in the county of the decedent's residence.
In addition to the actions available under this section, the payer or other third
party may take any action authorized by law or the governing instrument. If no
probate proceedings have been commenced, the payer or other third party shall

file with the court a copy of the written notice received by the payer or other third
party with the payment of funds or transfer or deposit of property. The court may
not charge a filing fee to the payer or other third party for the payment to the court
of amounts owed or transferred to or deposit with the court of any item of
property, even if no probate proceedings have been commenced before the
payment, transfer, or deposit. 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. A filing fee, if any, may be charged
upon disbursement either to the recipient or against the funds or property on
deposit with the court, in the discretion of the court. Payments, transfers, or
deposits made to or with the court discharge the payer 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.
8. a. A bona fide purchaser who purchases property from a former spouse, relative of
a former spouse, or any other person, or who receives from a former spouse,
relative of 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
liable under this section for the amount of the payment or the value of the item of
property or benefit. But a former spouse, relative of 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, or is personally liable for the amount of
the payment or the value of the item of property or benefit, to the person who is
entitled to it under this section.
b. If this section or any part of this section is preempted by federal law, other than
the federal Employee Retirement Income Security Act of 1974, as amended, with
respect to a payment, an item of property, or any other benefit covered by this
section, a former spouse, relative of the former spouse, or any 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 that payment,
item of property, or benefit, or is personally liable for the amount of the payment
or the value of the item of property or benefit, to the person who would have been
entitled to it were this section or part of this section not preempted.