Life Insurance Beneficiary Rights After a Divorce: Can an Ex-Spouse Collect Life Insurance Benefits?
Questions about ex-spouse life insurance rights are among the most common issues clients raise with our life insurance lawyers. Divorce often complicates beneficiary designations, and the rules governing who receives the life insurance payout after the policyholder dies can be confusing. Because each case involves different state laws, federal statutes, divorce decrees, and policy types, understanding your legal rights is essential—especially when competing claims arise.
Below is an attorney-written, comprehensive guide explaining how life insurance benefits are handled after divorce, when an ex-spouse can still collect, what role federal law plays, and why consulting a life insurance attorney is critical during and after divorce.
Who Is the Life Insurance Beneficiary After Divorce?
There is no single national rule determining who gets life insurance benefits after a divorce. The answer depends on:
What law controls the policy (state law vs. federal law)
Where the policy was issued
Where the couple lived
Whether the divorce decree includes life insurance provisions
Whether the policyholder changed the beneficiary after divorce
Step 1: Determine Whether State or Federal Law Applies
Many states have enacted revocation-on-divorce statutes, which automatically remove an ex-spouse as beneficiary once the divorce is finalized. But these laws do not apply if federal law governs the policy. Federal life insurance programs—including SGLI/VGLI, FEGLI, and many employer-provided ERISA plans—often preserve the ex-spouse’s beneficiary designation, even after divorce.
Step 2: Review the Divorce Decree
A divorce decree may require the insured to:
Maintain life insurance for the ex-spouse
Keep coverage for children
Replace an existing policy
Name a specific person as beneficiary
A key question is whether the divorce decree qualifies as a QDRO (Qualified Domestic Relations Order) under ERISA. If the policy is governed by ERISA and the decree is a valid QDRO, the ex-spouse may have enforceable rights even if not the named beneficiary.
Step 3: Investigate Whether the Beneficiary Change Was Valid
A life insurance attorney must evaluate:
Whether the insured followed policy rules when changing a beneficiary
Whether any change was the result of undue influence, fraud, or lack of capacity
Whether the form was signed properly and submitted before death
All of these steps are essential when handling life insurance beneficiary disputes after divorce.
Can a Divorce Decree Override a Named Beneficiary?
The answer is yes and no—it depends on the type of policy.
A divorce decree can override a beneficiary designation only when state law governs the policy. But many life insurance policies fall under federal law, which can preempt a state divorce decree.
Below is how different federal programs affect ex-spouse rights.
Military Life Insurance: SGLI and VGLI
SGLI (Servicemembers’ Group Life Insurance) and VGLI (Veterans’ Group Life Insurance) policies are governed by federal law. Under these rules, the named beneficiary always controls, regardless of:
Divorce
State automatic revocation laws
Conflicting court orders
Child support or alimony provisions
Example
If a servicemember names his parents as beneficiaries and later divorces, a divorce decree requiring him to keep his ex-wife as the beneficiary does not override the SGLI form. The parents will still receive the payout.
If the policy later converts to VGLI, similar federal protections apply.
Because SGLI/VGLI disputes are highly technical, anyone facing a conflict should consult a life insurance lawyer experienced in military claims.
FEGLI Life Insurance and Divorce
Federal Employees’ Group Life Insurance (FEGLI) policies are also governed by federal law. FEGLI follows a strict order of precedence, with the beneficiary designation controlling above all else.
A divorce decree cannot override a FEGLI beneficiary form unless very specific federal requirements are met. Ex-spouses frequently need a life insurance attorney to navigate FEGLI divorces and claim disputes.
ERISA Life Insurance Policies (Most Employer Plans)
ERISA governs most employer-provided group life insurance policies. In 1984, ERISA was amended to offer added protections to ex-spouses through Qualified Domestic Relations Orders (QDROs).
If a divorce decree qualifies as a QDRO, the insurer must pay benefits according to the decree—even if:
The beneficiary form lists someone else
The policyholder remarried
The policyholder never updated the form
Because ERISA preempts state law, a valid QDRO may allow an ex-spouse to receive life insurance benefits even in states with automatic revocation statutes. ERISA disputes are extremely nuanced and should always be reviewed by a life insurance attorney.
Can an Ex-Spouse Collect Life Insurance Money Even If the Deceased Remarried?
Maybe. depending on the type of policy and the applicable laws.
Many states have revocation-on-divorce statutes automatically removing ex-spouses as beneficiaries after divorce. These laws were created to prevent accidental windfalls to former spouses.
However, revocation-on-divorce laws do NOT apply when:
The policy is governed by ERISA
The insured was a federal employee (FEGLI)
The insured was military (SGLI/VGLI)
The divorce decree reaffirms the ex-spouse as beneficiary
The ex-spouse was redesignated after divorce
This means an ex-spouse may still collect life insurance benefits—even years later—if federal law controls or if the policyholder never updated the beneficiary and state law does not revoke the designation.
Important Note
Even when a revocation statute removes the ex-spouse, this does not guarantee the payout will go to the intended person. The insurer may:
Pay a contingent beneficiary
Pay the estate
Follow a policy-specific order of precedence
This can trigger disputes among children, new spouses, or other relatives—often requiring a life insurance attorney to resolve.
Exceptions to Revocation-on-Divorce Laws
An ex-spouse may still receive benefits if:
The divorce decree explicitly designates them
The divorce decree obligates the insured to maintain coverage
The insured redesignated the ex-spouse after divorce
The state does not have a revocation statute
The policy is federally governed (ERISA, FEGLI, SGLI, VGLI)
Because these exceptions vary by state and policy type, beneficiaries should seek legal guidance immediately.
States With Revocation-on-Divorce Statutes
These states automatically revoke an ex-spouse’s beneficiary rights after divorce:
Alabama • Alaska • Arizona • Colorado • Florida • Hawaii • Idaho • Iowa • Massachusetts • Michigan • Minnesota • Montana • Nevada • New Jersey • New Mexico • New York • North Dakota • Ohio • Pennsylvania • South Carolina • South Dakota • Texas • Utah • Virginia • Washington • Wisconsin
Even in these states, exceptions apply—especially when federal law governs the policy.
Why You Need a Life Insurance Lawyer During Divorce
Many divorcing couples overlook life insurance entirely, assuming the will controls or believing the beneficiary designation automatically changes. This is one of the most common and costly mistakes in family law.
A knowledgeable life insurance attorney can:
Ensure life insurance requirements are written into the divorce decree
Prepare or validate QDROs when ERISA applies
Confirm proper beneficiary changes with the insurer
Prevent future disputes among new spouses or children
Protect your rights as either the ex-spouse or the new spouse
If a mistake is made during divorce, recovering the life insurance benefit later may require complex litigation.
Get Help From an Experienced Life Insurance Attorney
If you are facing a beneficiary dispute, unsure about your rights as an ex-spouse, or dealing with a life insurance claim after divorce, our team can help. We have successfully handled beneficiary disputes involving ex-spouses, including:
Denied claims due to conflicting beneficiary changes
Denied claims for ex-spouses revoked by error
Denied FEGLI claims involving divorce orders
ERISA life insurance divorce conflicts
Interpleader lawsuits involving remarried spouses
Call (888) 510-2212 or submit our online form for a free case evaluation.
Our life insurance lawyers can analyze your divorce decree, policy documents, and applicable state or federal law to determine your rights and fight for the benefits you deserve.
