Can an Ex-Spouse Still Receive Life Insurance Benefits?
Even if an ex-spouse is no longer listed as a beneficiary on a life insurance policy, certain legal exceptions may still allow them to claim all or part of the payout. Divorce, remarriage, outdated estate planning documents, and court orders can all play a role in determining who ultimately receives the death benefit.
When you buy life insurance, you're thinking about protecting your family—not navigating future legal entanglements. But after a divorce, what once seemed like a simple policy can become a major source of conflict. It's not uncommon for an ex-spouse to still be listed as the beneficiary. In most cases, updating the policy resolves that issue quickly. However, some circumstances allow an ex-spouse to collect—even if they are no longer named on the policy or if other family members believe they should be the rightful beneficiary.
How Could My Ex Still Get Paid from My Life Insurance Policy?
You may assume that once you divorce, your ex-spouse has no claim to your life insurance—but that's not always true. Here are some situations in which your ex might still have a legal claim:
Court-Ordered Beneficiary Designation: In many divorce settlements, especially when children are involved, a court may require one spouse to maintain the other as a beneficiary. This is often intended to secure child support or alimony obligations in case of untimely death.
Irrevocable Trusts: If your ex was named in an irrevocable trust that owns a life insurance policy, and that trust wasn't updated post-divorce, they could still receive the payout—regardless of your current intentions.
Failure to Update Designations After Remarriage: One of the most common errors is forgetting to change your beneficiary after remarrying. In states that don’t have automatic revocation laws, this can result in an ex-spouse receiving the benefit even if you had no further contact with them.
You Intended for Them to Remain the Beneficiary: If you and your ex-spouse agreed during or after the divorce that they would remain the beneficiary—perhaps to provide for shared children—the courts may uphold that agreement, even if the divorce would have otherwise revoked their status.
Revocation Upon Divorce Laws
Many states have enacted statutes known as revocation upon divorce laws. These laws automatically cancel an ex-spouse’s beneficiary designation once the divorce is finalized—unless there is clear evidence that the policyholder intended for the ex-spouse to remain the beneficiary. While these laws are designed to protect policyholders from unintended consequences, they can also trigger legal disputes if the policyholder failed to update paperwork or clarify their wishes.
Even in these states, an ex-spouse may still have a claim if:
The policyholder re-designated them post-divorce
The divorce decree mandated continued coverage
The life insurance is governed by federal law, such as SGLI or FEGLI, which overrides state revocation rules
Why You Need a Life Insurance Attorney During or After Divorce
Divorce is not just a family law issue—it has serious implications for life insurance. Insurers often follow strict protocols and will not honor beneficiary changes unless all documentation is properly completed and submitted. Moreover, if your ex is wrongfully paid or excluded, it could lead to lengthy legal battles, especially if an interpleader action is filed.
A life insurance attorney can:
Help you legally update or preserve beneficiary designations
Interpret whether your divorce settlement impacts your policy
Challenge or defend beneficiary claims made by an ex-spouse
Represent you in court if the insurer initiates an interpleader case
Even if you’re currently going through a peaceful divorce, it’s wise to consult with a life insurance attorney to avoid future conflicts—especially if your policy involves a large death benefit or shared dependents.
Frequently Asked Questions (FAQ)
Q: Does divorce automatically remove my ex-spouse as a life insurance beneficiary?
A: In many states, yes—if your state has revocation upon divorce laws. But in federally governed policies or where the ex was re-designated, they may still receive the benefit.
Q: Can my ex-spouse still get the payout if I forgot to update the policy after remarrying?
A: Potentially. If your state doesn’t automatically revoke ex-spouses or if your ex was never removed, they might still be the legal beneficiary.
Q: What if a divorce decree says my ex must remain as the beneficiary?
A: In that case, you may be legally required to keep them listed. Violating a court order could result in civil penalties or legal challenges by your ex or their estate.
Q: Can I challenge my ex-spouse receiving the payout after the insured's death?
A: Yes. If you believe they were wrongfully paid or the designation violated state law, you may have grounds to dispute it—especially with legal help.
Q: How can a life insurance lawyer help in these situations?
A: A life insurance attorney can help clarify your rights, navigate state and federal laws, and contest or defend claims made by an ex-spouse. They can also represent you in court or in interpleader proceedings if needed.