Durable POA Does Not Survive Divorce Proceeding
If you have a client using a durable power of attorney, beware of
Ala. Code 1975, § 26-1-2(g)(3). This little known subsection provides that
authority given to a spouse under a durable power of attorney is revoked under a
number of circumstances. These include divorce, annulment, legal separation and
even the filing of a divorce proceeding. Surrounded by other subsections dealing
with health care proxies and the Alabama Natural Death Act, the application of §
26-1-2(g)(3) to durable powers of attorney generally can easily be missed.
When counselling a client about to use a durable power of
attorney in which the principal is the client's spouse, inquire first whether
your client's marital status has changed. If you have reason to doubt your
client's information, quickly check on-line court records to determine whether
your client is party to a divorce proceeding. A client who falls within the
scope of § 26-1-2(g)(3) cannot exercise a durable power of attorney as the
subsection revokes it. A few minutes of due diligence in ascertaining the
validity of the durable power of attorney can prevent a later claim of
malpractice.