Divorce and Designation of a Beneficiary for a Life Insurance Policy
The general rule is that divorce does not, per se, affect or defeat a spouse’s rights as a designated beneficiary in a policy on the other spouse’s life, absent a change in beneficiary designation, a provision in the contract of insurance itself which makes the beneficiary ineligible if the status of spouse does not exist at the time of death, or a specific statute revoking beneficiary status on divorce.
The rule is not universal, however. Some states have divestiture statutes whereby the status of a spouse as named beneficiary is terminated by the entry of the divorce decree, without regard to the fact that the spouse remains the named beneficiary. E.g., Mich. Comp. Laws Ann. 552.101; Tex. Fam. Code Ann. 3.632(a)-(c); Va. Code Ann. 20-111.1; Wash. Code Ann. 11.07.010.
Resources & Tools
PROTECTION AFTER DIVORCE -- COBRA, the Consolidated Omnibus Budget Reconciliation Act, protects ex-spouses even after one of them remarries, for a fixed period of time, as well as employees who lose their positions. COBRA establishes a time line for picking up coverage (which must be religiously observed), and it is very expensive.
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Divorce & Money: How to Make the Best Financial Decisions
Life Insurance and Divorce
Established in 1996
© 1996 - 2021 MH Sub I, LLC dba Divorce Source. All Rights Reserved.