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The Supreme Court’s recent decision in Sveen v. Melin has proven groundbreaking for many reasons. In our last article, we offered background information on this landmark case. Next, we’ll take an in-depth look at how Sveen v. Melin might impact divorcees in Minnesota and across the nation.

The Supreme Court’s Ruling

In a rare 8-1 decision, the Supreme Court ruled in favor of Sveen’s children. New Supreme Court justice Neil Gorsuch was the lone dissenter. In breaking with the majority, he hoped to draw attention to the application of the Constitution’s Contracts Clause. However, Justice Elena Kagan explained, “the law is unlikely to disturb any policyholder’s expectations because it does no more than a divorce court could always have done.”

How the Supreme Court’s Decision Will Impact Future Divorces in Minnesota

Minnesota is one of over two dozen states that maintains revocation on divorce — a practice involving the removal of beneficiary rights after a couple ends their marriage. As in many states, this approach is based on a notable Uniform Probate Code amendment, which refers to the failure to swap beneficiaries as ‘inattention’ and not ‘intention.’ The Supreme Court’s decision allows Minnesota and other states to continue revoking beneficiary rights.

As a divorcee, the main takeaway from this case is that you are not automatically entitled to beneficiary rights simply because your ex failed to designate somebody else. That’s not to say your ex is barred from designating you as beneficiary; he or she would simply need to refile the appropriate paperwork.

As a Minnesotan considering divorce, you’re rightfully worried about the role Sveen v. Melin and current state statutes will play in your financial future. The law firm of Barna, Guzy & Steffen, Ltd. can provide the insight and guidance you need. Reach out today to learn more.