Divorce & Beneficiary Designations Fact Sheet

Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping beneficiaries nationwide resolve life insurance disputes involving ex‑spouses and divorce‑related designations.

What Are Divorce & Beneficiary Designation Disputes?

Divorce often creates conflicts over life insurance beneficiary designations. Many states have laws that automatically revoke an ex‑spouse’s designation after divorce, while others enforce the designation unless formally changed. These disputes can delay payment, trigger interpleader lawsuits, or result in outright denial of benefits.

Beneficiaries have the right to challenge improper claims and defend valid designations in court.

Why Divorce Creates Beneficiary Disputes

Common scenarios include:

• Ex‑spouse remains listed as beneficiary despite divorce
• State law automatically revokes ex‑spouse designation, creating conflicts with children or new spouse
• Last‑minute changes to beneficiary forms during divorce proceedings
• Employer or insurer failing to update records after divorce
• Disputes between current spouse and ex‑spouse over entitlement
• Allegations of undue influence or fraud in changing designations
• Confusion over federal vs. state law (ERISA, FEGLI, SGLI rules may override state divorce laws)

What To Do If You Face a Divorce‑Related Dispute

1. Gather all beneficiary forms and policy documents.
2. Request a complete copy of designation records from the insurer or employer.
3. Review state divorce laws and federal program rules that may apply.
4. Avoid direct communication with competing claimants without legal advice.
5. Contact an experienced life insurance attorney immediately to protect your rights.

Your Legal Rights

• Courts can enforce or revoke ex‑spouse designations depending on state law and policy terms.
• Federal programs (ERISA, FEGLI, SGLI) may override state divorce laws.
• Beneficiaries can challenge improper claims and defend rightful designations in court.

Case Example

We helped a daughter recover $300,000 in life insurance benefits after an estranged ex‑spouse contested the designation. By proving the change was valid and state law revoked the ex‑spouse’s rights, we secured full payment for the rightful beneficiary.

Frequently Asked Questions

Q: Does divorce automatically revoke a beneficiary designation? 

A: In many states, yes, but federal programs may override state law.

Q: What if the insured forgot to update the designation after divorce? 

A: Courts may apply state revocation laws, but disputes often require litigation.

Q: Can an ex‑spouse still claim benefits? 

A: Only if the designation remains valid under applicable law.

Q: Do I need an attorney? 

A: Yes, divorce‑related disputes are complex and often involve conflicting state and federal rules.

How We Help

• Investigate beneficiary designations and divorce records.
• Challenge improper claims by ex‑spouses.
• Defend rightful beneficiaries in interpleader lawsuits and court proceedings.
• Secure payouts for families nationwide.

Contact Us

If you are involved in a life insurance dispute involving divorce or ex‑spouse beneficiary claims, don’t wait. Early legal action often determines the outcome. Call 800‑330‑2274 for a free consultation. No fees unless we win.

Key Takeaways

• Divorce often triggers disputes over beneficiary designations.
• State laws may revoke ex‑spouse designations, but federal programs can override.
• Beneficiaries have strong legal rights to challenge improper claims.
• Prompt legal action increases the chance of success.

Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: Dec 7, 2025 | Contact 800-330-2274