Case Study Series — Divorce

Case Study #1: Ex-Wife Denied Benefits After Automatic Revocation Law — We Restored Her Rights

Our client was a divorced mother who remained the named beneficiary on her ex-husband’s life insurance policy. Although the marriage ended amicably, her ex-husband specifically kept her as the beneficiary to ensure she and their teenage children would be financially protected.

After his unexpected death, she submitted a claim to collect the proceeds.

The insurer rejected her, citing the state’s automatic revocation statute — a law that automatically cancels a former spouse’s beneficiary rights unless they were reaffirmed after divorce.

She was devastated. She was not a stranger or opportunist. She was the intended beneficiary, and paid the premiums after the divorce for years.

We were hired to challenge the denial.

What We Discovered

Once we obtained the policy file, divorce decree, financial records, and digital account history, several key facts emerged:

1. The insured intentionally maintained his ex-wife as beneficiary post-divorce

We uncovered:

• email correspondence between them

• text messages referencing “keeping the policy for you and the kids”

• his handwritten notes about providing financial security

• his calls to the insurer advising them of the divorce

These communications showed clear ongoing intent after the divorce.

2. The beneficiary continued paying premiums for years

Bank statements demonstrated:

• automatic monthly withdrawals

• no missed payments

• no beneficiary change requests

3. No new beneficiary was ever designated

The insurer had no updated forms and no competing claims. The law exists to protect against unwanted ex-spouse enrichment — not to override explicit intent.

4. The divorce decree did not prohibit post-divorce benefits

Unlike hostile divorces, this decree:

• did not revoke life insurance rights

• did not require the insured to remove the ex-wife

• explicitly allowed financial arrangements between them

5. State law provides a critical exception

Automatic revocation statutes usually have one major exception:

If the insured re-designated the ex-spouse to keep the former spouse as beneficiary after divorce, the designation remains valid.

We built the case around that exception.

Outcome

After submitting our legal brief, including documentary records and sworn statements, the insurer conceded:

• the ex-wife was the intended beneficiary

• the automatic revocation statute did not apply

• the existing designation remained valid

The insurer reinstated her rights.

Our client received the full life insurance benefit, exactly as her ex-husband intended.

Case Study #2: Divorce Decree Required Life Insurance — But the Policy Lapsed

In a second matter, an ex-husband was obligated by divorce order to maintain a life insurance policy naming our client (his ex-wife) as beneficiary for 10 years.

He quietly let the original policy lapse and replaced it with a cheaper one — naming his new spouse instead.

When he died, the ex-wife filed a claim under the divorce decree.

The insurer denied her and paid the new spouse.

We represented the ex-wife.

What We Discovered

1. The divorce decree controlled regardless of policy changes

Under the divorce degree the husband was obligated to carry a certain amount of life insurance to cover child support and alimony obligations.

2. The insured intentionally violated the decree

He continued paying child support and other obligations, but not the required coverage.

3. The court could impose a constructive trust

Even if the new spouse was legally the current beneficiary, equity can require her to surrender funds obtained in violation of a court order.

Outcome

We filed suit in state court.

The judge ruled:

• the new spouse must turn over the life insurance proceeds

• the ex-wife was properly entitled to them under the decree

The ex-wife received the full benefit.

Why Divorce & Life Insurance Cases Matter

These cases demonstrate a major legal misconception:

Divorce does not automatically void a beneficiary designation in every situation.

Many denials occur because insurers rely on broad statutes rather than:

• clear evidence of post-divorce intent

• contractual beneficiary rules

• binding divorce orders

• equitable doctrines

Courts routinely reverse improper denials when:

• intent is proven through communication

• contingent beneficiaries exist

• a decree requires ongoing coverage

Frequently Asked Questions About Divorce & Life Insurance

Q: Does divorce automatically remove an ex-spouse as beneficiary?

In some states, yes — but only if the insured didn’t reaffirm the designation. Intent after the divorce can override automatic revocation.

Q: What if the insurer cites state law?

Law is not absolute. Evidence of intent or a divorce decree can defeat revocation statutes.

Q: Can texts, emails, or bank statements prove intent?

Yes. Courts frequently rely on them to evaluate the insured’s wishes.

Q: What happens if the policy lapsed and a new spouse is named?

Courts can impose a constructive trust, forcing the new spouse to hand over the funds.

Q: Are contingent beneficiaries protected?

Often yes. Contracts typically elevate them when the primary is disqualified.

If You Believe a Divorce Impacted Your Life Insurance Claim, Call 1-888-510-2212

Divorce-related beneficiary disputes are highly winnable when handled correctly.

Call 1-888-510-2212 for a Free Consultation

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