My Ex Is Named As Beneficiary On My Life Insurance Policy? What Happens If I Die?

life insurance policy beneficiary designation divorce

Divorce Effectively Acts As a Termination of the Beneficiary Designation..Right?

life insurance policy beneficiary designation divorceAn issue that comes up more often than many may think is the following scenario:  One spouse names the other spouse as beneficiary of a life insurance policy.  Couple gets divorced. Beneficiary designation is never changed.  Policy owner dies.  Does the ex-spouse get the life insurance proceeds?  For many years, this question was covered by case law arising from different jurisdictions, with some jurisdictions coming to the conclusion that if the beneficiary designation wasn’t changed, the ex-spouse still received the proceeds and others concluding that the divorce effectively acted as a termination of the beneficiary designation.

Clarity has been brought to this issue as it is now covered by statutory law here in Ohio, namely Ohio Revised Code Section 5315.33, which states that the termination of marriage revokes the designation of a spouse as a beneficiary.  Two exceptions exist.  One is if the designation of beneficiary or the judgment of decree granting the divorce specifically provides otherwise.  Second is if the parties later remarry each other.  Other than under those two exceptions, the termination of the marriage terminates the beneficiary designation, and the ex-spouse is deemed by law to … Read More... “My Ex Is Named As Beneficiary On My Life Insurance Policy? What Happens If I Die?”

Life Insurance Policies on Ex-Spouses: Can and Should a Divorce Court Allow These?

woman under umbrella made of hearts

Spousal Support Can Be Secured With A Life Insurance Policy

life insurance policy spousal supportIn today’s world, it is not uncommon for married spouses to take out life insurance policies on one another.  Of course, if you’re happily married, you hope and pray that you’ll never be in the place of having to cash one in.  Nevertheless, such policies provide some “peace of mind” that should the unthinkable happen, the financial burden caused by such a tragedy may be a little easier to bear.

So, having a life insurance policy on your spouse makes sense, right?  But what about having a life insurance policy on your ex, or soon-to-be ex-spouse? Can and should a divorce court allow this?

Many people would argue that in divorce cases where child support or spousal support is ordered, it is smart to have a life insurance policy in place on the parent who is obligated to pay. By doing so, it ensures that the children or receiving spouse will be supported even if the other spouse dies.

Therefore, it is fairly common for a spouse who wants to guarantee support, to request that their soon-to-be ex-spouse carry a policy naming them as the beneficiary.

Life insurance policies guaranteeing … Read More... “Life Insurance Policies on Ex-Spouses: Can and Should a Divorce Court Allow These?”