Nevada § 111.781 - Effect of divorce or annulment on nonprobate transfer of property; liability of payor for payment or transfer made in good faith; federal preemption

§ 111.781. Effect of divorce or annulment on nonprobate transfer of property; liability of payor for payment or transfer made in good faith; federal preemption

1. Except as otherwise 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 persons before or after the marriage, divorce or annulment, the divorce

or annulment of a marriage: (a) Revokes any revocable: (1) Disposition or appointment of property made by a divorced person to his or her

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 person's former

spouse; (2) Provision in a governing instrument conferring a general or nongeneral power of

appointment on the divorced person's former spouse or on a relative of the divorced

person's former spouse; and (3) Nomination in a governing instrument that nominates a divorced person's former

spouse or a relative of the divorced person's former spouse to serve in any fiduciary

or representative capacity, including a personal representative capacity, including

a personal representative, executor, trustee, conservator, agent or guardian; and (b) Severs the interest 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 or as

community property with a right of survivorship and transforms the interests of the

former spouses into equal tenancies in common. 2. A severance under paragraph (b) of subsection 1 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 records are relied upon, in the ordinary

course of transactions involving such property, as evidence of ownership. 3. The 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. 4. Any provisions revoked solely by this section are revived by the divorced person's

remarriage to the former spouse or by a nullification of the divorce or annulment. 5. Unless a court in an action commenced pursuant to chapter 125 of NRS specifically orders otherwise, a restraining order entered pursuant to NRS 125.050 does not preclude a party to such an action from making or changing beneficiary designations

that specify who will receive the party's assets upon the party's death. 6. 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 designated in a governing

instrument affected by the provisions of this section 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 or actual notice of any event affecting

a beneficiary designation. A payor or other third party is liable for a payment made or other action taken

after the payor or other third party received written or actual notice of a claimed

forfeiture or revocation under this section. 7. Written notice of the divorce, annulment or remarriage or written notice of a complaint

or petition for divorce or annulment 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. 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 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. 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. 8. A person who purchases property from a former spouse, relative of a former spouse

or any other person for value and without notice, 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 is liable

under this section for the amount of the payment or the value of the item of property

or benefit. 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. 9. If this section or any part of this section is preempted by federal law 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. 10. This section applies only to nonprobate transfers which become effective because

of the death of a person on or after October 1, 2011, regardless of when the divorce

or annulment occurred. 11. As used 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. A decree of separation that does not terminate the status of a married couple is

not a divorce for purposes of this section. (c) “ Divorced person ” includes a person whose marriage has been annulled. (d) “ Governing instrument ” means a governing instrument executed by a divorced person before the divorce or

annulment of the person's marriage to the person's former spouse. (e) “ Relative of the divorced person's former spouse ” means a person who is related to the divorced person's former spouse by blood, adoption

or affinity and who, after the divorce or annulment, is not related to the divorced

person by blood, adoption or affinity. (f) “ Revocable ,” with respect to a disposition, appointment, provision or nomination, means one

under which the divorced person, 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 person's former spouse or former spouse's relative, whether or not the

divorced person was then empowered to designate himself or herself in place of his

or her former spouse or in place of his or her former spouse's relative and whether

or not the divorced person then had the capacity to exercise the power.